Hi all, my husband and I have recently moved to Melbourne and we are looking to buy a home. We have $550K in cash and we only plan to spend up to $450K on our house, so hopefully have $75-$100K to invest.
*Is this enough to get started? If so, how?We have also looked at buying an older home on a big block, then subdividing and building 2 units on block and then selling them off on separate titles. Then we would do up older home and live in it – and hopefully still have at least $100-$150 to invest afterwards. But, the whole idea of subdividing seems to be a bit of a minefield and as a novice, I am not sure where to begin with evaluating the option and then with knowing what process to follow to make it all happen.
*Is it possible for a novice to subdivide and make some money or is this something best left to the builders/developers.Note – our cash includes our Super so we can’t afford to lose it.
Thanks
Narelle
Originally posted by mknk:Hi all, my husband and I have recently moved to Melbourne and we are looking to buy a home. We have $550K in cash and we only plan to spend up to $450K on our house, so hopefully have $75-$100K to invest.
*Is this enough to get started? If so, how?Hi Narelle,
You could use the $100K for the deposit and costs on Two $200K properties, or Four $100K properties.Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Not to mention your equity, you could use that as well!
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Mknk,
Are you contemplating using some of your Super funds to assist with the purchase of ‘your home’ – this course of action is not permitted under the Super rules and as such you may be well advised to seek professional advice.
In theory, aside from the above comment, your plans are feasible. As with all investments undertake your research and consult widely with recognised experts in their respective fields – especially given your relative lack of experience.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Hi, thanks for the feedback. Our cash includes our Super – we’ve moved from NZ where you get to take out your Super when you leave your employer – so it is all ok for us to use.
Regarding subdivision/building – if we employ a builder to do this, won’t they contract the architect/designer & all subcontractors etc and do all the paperwork etc – and we would have a contract price with them. So, effectively this would mean they would make a handy profit and we may not? Or is there a process that we can work through, where we project manage it and engage the right people at the right time? Is a novice able to do this and if so, would you think I would be able to find a builder/developer who would ‘mentor’ me and point me in the right direction for the steps involved etc??Thanks in advance for any other feedback.
Narelle
Consider getting in touch with Metropole property Management.
They are in Melbourne and specifically do this sort of thing ( developments for private individuals)
It may be a good starting point to get some expert advice.Hi Narelle,
You said
Then we would do up older home and live in it – and hopefully still have at least $100-$150 to invest afterwards.If you wanted to go down this road with the amount of cash you have available, maybe you could think about buying an older style house in the inner city as your PPOR.
You can then renovate it and sell it without paying capital gains tax (as long as you stay there for a year). Then sell up and do the next one…
If you can do a lot of the work yourselves, you’ll save on a lot of the subcontractors costs. This would also be the safest method if you don’t want to lose your super and you’re better off with a quality property in the inner city for capital growth.
XXX
If you lived in the house as your main residence, then there would be no requirement to live in it for one year. You could sell after a few months and still pay no CGT. BUT if the ATO suspect you are doing it as a business, then they could still impose CGT.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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