Hi everyone,
Pretty new to this forum.
I also received Steve McKnight’s book “From 0 to 130 Properties in 3.5 Years” as a great Xmas present!Being used to negatively geared property investment now the cf positive makes sense.
Had an investment unit in Bondi Beach that I sold 2 years ago.
3 years ago bought a block of land in a popular area in SE Queensland, intending to build my dream house there.
Instead an opportunity arose to buy the place I was renting in SE Queensland.
I owe approx $90,000 on it.Recent valuation is around $300,000.
It has water views and is on the beach and will never be built out.
I want to sell my block of land, as I decided not to build there, since I want to stay where I am for now.
Land valuations are from $295,000 to $320,000.
There is no mortgage on the block.I want to pay off the rest of my mortgage on my PPOR.
And keep an eye on investing elswhere, with the remainder of the proceeds from land sale as deposits on other places.However, next door property is coming on the market. It has magnificent water views, full frontage that can never be built out,ever!
The price range is between $335,000 and $345,000.This is a very tempting opportunity, and for the past 2 years I was dreaming about buying this property (large townhouse).
I would have the majority in the Body Corporate, as there are only 3 townhouses together.
And the eventual capital gain can be big.Points to consider:
1. I would have to inject lot of cash for the purchase to make it +cf. Possible rental return from $250-$300. Have to do more research on it.2. I would not have my PPOR completely paid off.
3. The area is a beautiful area, frequented by retirees and home owners, and people renting for short terms while they are waiting for their own houses to be built.
The remainder of the rental market consists of people who may not have enough income to pay higher rent in the “Location,Location” area.
Also, as the townhouse has stairs and a small yard, it will not appeal to everyone.4. It may take a while to sell my block.
5. Bank will lend without me selling the land.
6. I went part-time with my job recently, so my income has halved. However I can return full time anytime I wish.
7. Holiday rentals concern me : high outgoings.
However this is a very popular holiday area close to Brisbane.8. A popular property TV program will be filmed here very soon, which should create extra interest in this area.
9. If I do buy this place, how will a tennant feel living next door to the owner?
10. I may move out of my own place in the near future, and will need to rent my place out also.
Will I be foolish to keep all my eggs in the same basket? Although it is a lovely area basket.I have been thinking about all these issues.
I would appreciate some comments, perhaps someone out there has been in a similar situation to mine?Hence, Decisions….Decisions.
Potentially very high capital growth versus acquiring more properties that these days can be lot harder to find.Sorry to make this so long, but this is a big decision for me.
I am really ready to use my head and facts this time.Thank you for your time and comments.
Kind Regards,
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Freedom.Freedom, you could use the money from the sale of land to pay off your PPOR. Then you reborrow, or use as security to purchase IPs. this makes it tax deductible debt.
Don’t let the tenants know you are the owner – get it managed by a RE company.
Is the TV show ‘The Block’?
If you buy more properties in other areas later on you will be diversified. If you have done your research on your area, and know it will be good, then go for it. You can watch your initial ‘basket’ very closely!!
Cheers
MelThank you, Mel.
Yes, I do think paying off my PPOR ASAP is the priority.
This way I get rid off non-deductible loan.
I most certainly will use a managing agent, as I have heard too many tennants from hell stories.
However, the secret of myself being an owner next door may leak out even with employing an agent.
Still, this may come out lot later, and I may be moved out by then anyway.Tomorrow I will do my due diligence and check out
the rents for similar properties.As for the TV show, no it isn’t the Block but a combination of the Block and Big Brother.
It is named the “Hothouse”.
Starts in February this year.Yes, I wish I had a crystal ball,hehehe…
I will monitor the situation closely.
In the mean time I’ve ordered a whole stack of books and hit the net.
As I said it is a new game to me.
So far I did well with capital growth returns. Had good results.
Now I am in the process of learning new strategies.
And learning a new market/s since moving from Sydney.I agree that diversification is important.
I will monitor my local situation.
Thank you Mel for taking your time to reply to me.
Cheers,
Freedom.Isn’t that t.v. show the one were, there getting 14 people or couples, to build a $2 million dollar dream house and only 1 person or 1 couple will win it?
cheers,
s.i.sYes, this is the one.
Cheers,
Freedom8
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