we are purchasing a house with a seperate block of land attatched. The block and house are on seperate titles. We intend to build on the block and do minimal renovations on the original house. Total loan is $360k do we arrange two seperate loans for each property and rent them at $180- $200 for orig house and $250 – $275 for new house – or do we sell??
What to do.shit….even i’m confused. are the decimal points in the right places?
(edit – thankfully you have edited your post)
cheers
brahms
Mortgage Broker
[email protected]Correct me if I am wrong here please.
Purchase Price is 230K
Land Value is $60k
House Value is $170k
New house cost to go on land is $120kRental on old house is 180-200
Rental on new house is 250-275Sale of old house could be $170k
Sale of new house on completion could be $250k
Total sale of both could be $420KCost of purchase and building total would be $350k.
Potential Gross Profit is $70K
Is that what you are asking?
Questions that would impact on this would depend on loans, expenses, rates (both council and interest), etc.Hard to even suggest a course of action without more info.
Byronent
Adelaide SAHi rickm,
I’ve got to admit that I read your post and decided to just keep an eye on it as I had no idea what you were saying. I thought it might just be me but after brahms post I thought I’d ask:
1) What is the purchase price you are actually paying?
2) I’m assuming you are going to build another house. If so what is the cost of this?
3) Potential value of the whole property after development ie two seperate but adjacent blocks, one with an established house and one with a newly built house. This is made up of a) the established house on one block and b) the newly built house on the other block.
4) Total rental income. This is made up of rent from a) the established house and b) the newly built house.
5) Where does the 100 p/w to “prop both properties up” come from?
6) What were you actually proposing to do with the property? I think you might want to keep the block with the established house as a buy and hold investment and sell off the block with the newly built house. Am I on the right track?
Kind Regards,
Sonja…OK I see you’ve changed your original post while I was typing. I’ll read it again and rethink…
You edited your original post. I hope my above info is still accurate.
I would have two loans, so one sale if you choose to go that way doesn’t impact on the other nor does it delay you or cause you too refinance due to change of securities.
Byronent
Adelaide SAyes you got my inquire,and figures total cost is 360.000 for total project borrowing the lot in one loan.Rates 2100.00 per year.My typing skills are limited. Sorry
No need to apologise:) If you have a genuine question I believe that most people will be willing to try and help. I agree with Byronent that if you are looking to seperate the land and sell one block but keep the other then two seperate loans seem the logical way to go.
Regards,
Sonja
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