he im a new member i just joined today. im confused & was wondering if any of you guys have some advice. Ive got a block of land worth $120,000 & im renting a place to live & its costing me $180 per week. Should I sell the block of land, keep renting & buy an investment house to rent out or should i sell the block of land, stop renting & buy a house to live in. How does one start off this property investment stuff????
[confused2]The block is costing you money as it is not income producing. Make sure you check with your accountant on the deductibility of costs such as interest etc.
But selling the land will cost money in fees taxes etc. What about building on it and then selling or keeping?
I generally think renting is a great idea as you may be paying a lot less than you would if you were to be buying the same property – but just make sure you invest this savings or you will be worse off in the long term.
Terryw
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TerryW has got some good points there for you. I think I would be looking for a property to rent out immediately rather than taking on the task of building on your block of land. There are a lot of things potential purchasers can dislike about a house whereas a clean block of land can spark someone's romantic notion of all types of lovely things to come. However, if your land isn't in an easy to sell area but could potentially pay you some money back by building on it and then renting out the property this is one of the ways of getting on the property ladder. To summarise this I would, for now, suggest you continue to rent at $180 per week and either sell your land and buy a rental property with an immediate return or if you can afford it build on your land and then rent the new house out. As for your last question on how you get started in this property investment stuff, you have made a small step into the playing field already, you now need to move on with your idea that you had when you initially purchased the block.
I wish you well with all your properties to come.
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