My partner and I have just received a block of land from my parents (as a gift) 5-10min drive from Hobart on the eastern shore. Should we subdivide into 2 bblocks and put 1 house on each block (with the intention to rent out), or break the land into small blocks and sell off as is? We have 2 investment properties at the moment in Hobart and currently live in the Northern Terriotry rent free where we plan to stay for the next 3 years…. in our late 20's and looking to set ourselves up for a very early retirement…cheers
tuggerwaughsell it to us
!Its really a personal decision and one you'll get lots of different views on depending on what strategy people prefer….some buy and hold and never ever sell because they're into capital growth, whereas others are in favour of turning a quick profit and doing lots of these over a period of time to make their money. You need to do some comparable calculations.
If your long term goal is to retire through property as the investing vehicle, then possibly in the scenario of subdividing, building and holding them as long time rentals may be a good option because you've presumably paid nothing for the land so your debt would only be on the building. Look at the rental market in that area and see what the returns are like which would help you in making a decision.
Need to take into consideration the finance side of things as well….whether you'd be able to finance whatever strategy you decide.
Kim
!You must be logged in to reply to this topic. If you don't have an account, you can register here.
