Hello All,
I am a young investor who owns two properties in Ferny Hills and Stafford Heights in Brisbane. My newest addition to the portfolio is a 1012sqm property with a house located at the front right (the property already has DA approval and lot configuration for mixed housing at the back). The house will rent for $270 p/w.
I'm looking at building a duplex at the back with a professional builder in Toowoomba. My first question is who would you recommend in Toowoomba to build a duplex? I have heard that Dixon homes are cheap but will usually run overtime and not provide a quality product.
Looking at the current rentals within the area, the units would fetch $325 p/w each. Looking at the sales of new duplex buildings, you can sell both units for around $650000.
I'm budgeting that the whole project (buying land/house and building duplex) will cost approximately $615000.
Some more questions are:
Do you think I should hold onto the properties (house and duplex) as it should be positively geared?
or
Should I sell house and/or duplex and/or 1 unit to help pay off the mortgage?I hope I have provided most of the information. Just wondering if people have encounted the same situation and what they did or would have done.
Thank you for your time.
Regards,
Adam
My main questions are:
Do you think I should hold onto the properties (house and duplex) as it should be positively geared?
or
Should I sell house and/or duplex and/or 1 unit to help pay off the mortgage?Regards
Adam
Hi Adam,
I read answers to this type of question throughout the forums and find it an interesting read. If you run through the forums you'll see it pops up a few times a week. ie, +ve gear versus -ve gear; income stream versus capital growth. Not knowing Toowoomba I have no idea about capital growth potential.
Other forumites seem to decide what's best based on their investing goals. Some want to aggressively invest for wealth and it seems to me that they buy and hold everything and use their equity to grow a lot of wealth to the limits of their borrowing capacity. Others seem to buy and hold +ve cashflow properties and expect only slow to moderate capital growth. Others buy develop and sell to make quick cash to achieve other investing goals.
I have just developed and sold an IP for a cash injection but I'm looking at buying +ve cashflow next time. I want to build some passive income.
Although I have started my property investing journey I am still pretty new to this. My final thing would be for you to ask yourself what your life goals and investing goals are. How you make sense of these questions might help you make up your mind.
Regards,
Andrew
itsandrew
Go as far as you can see and you will see further.
Thanks for the information Andrew. I will definitely do a search of the website and see what comes up.
I hope to find opinions of the buy/hold or buy/sell argument.
Regards,
Adam
Give Edward at GJ Gardner Toowoomba a call. They can do a complete package and are also to assist with DA and have land surveyor contacts etc.
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