Hi anyone here subdivided their back block and built a house on it to rent out! What steps did you take and would you sell or just rent out the property as another income stream especially if the rent covered the borrowing costs.
Any thoughts or ideas appreciated!
It is what we do. We don’t sell. We work well under the median house price. Cheapest so far was $86K and most expensive $147K, each yielding a building site. The general rule of thumb for us is that the building on the back should turn the whole proposition into a cashflow positive deal if it is not already. Better if you ask questions of me. It’s raining in Melbourne so I have an excuse for not being outside painting the latest part of our little empire.
Thanks fatboy I am just sitting on this at the moment because of credit issues but maybe a few years I will just build another house at the back and the rent should cover the build cost and subdivision costs. So Interesting times ahead. Would you suggest just a standard 3×2
The best thing you can do if time is on your side is to do a bit of research. see what your council requirements are for various options AND find yourself a good surveyor. Make sure that the surveyor has a town planner on their staff. The difference between a good and a bad surveyor is months or even a year or more in time as subdivision plans are rejected and resubmitted. Get out the calculator and nut out the possible scenarios.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
