Have subdivided PPOR and ended up with a 2073 sq metre rear block, valued at 300k. Am restricted to build only one IP as can only use septic system. (no town sewerage system available). I have 770k finance at my disposal. Do i max out the borrowings and build something up market with higher rental but limited range of tenants and hope for 7 – 10 year doubling or a standard 4×2 home at 300k with larger range of tenants. Would love to hear your ideas.
Can’t talk specifically for the area that you are in, but generally middle of the range rentals are more sought after and easier to rent.
I suspect that the gross rental yield would be higher on a lower priced property vs an executive type property.
Investment Property Management
http://www.adprop.com.auMy strategy is to focus on cash flow and invest in the lower end of the mkt. Normally better rental returns.
Given that it sounds like a regional area (2073 sq)…
and you are already residing in the front block…
could you perhaps run a bed n breakfast from there…?
(Ofcourse it depends on tourism / holiday demand in the area)…
Just a thought…. Either way, I’d go build small… Don’t put all your moeny into the one property… Spread the cash a little.Good luck,
Anthony.i would find the most commonly built style of home for that block size in your area and build the BEST variation of that design that you could find.
Thanks for your ideas,well done. it,s obvious that we’re all singing from the same song sheet, only DLPP said it in not so many words. A nice new 4×2 with a little extra thrown in to make it stand out from the norm. OK off i go to the builder. Thanks again guys.[thumbsupanim]
if you are living in one smaller one, and rent out the other/s collect the cash every Friday. Sweet, take that Johnny!!
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