Mmm… Very interesting to hear you're doing the same thing!! It's not as expensive as I was expecting. i was thinking down the lines of $10,000+ to build a trust structure with companies/trustees.
Excuse my ignorance but PPOR…???
Yeah that's what I thought too, but I figured if I sold my house in Brisbane, I'd lose all my $245k of equity!! And quite honestly you can't really buy another decent place with $400k… Not in Melbourne anyway….
So it looks like I have to keep the place, if I want to use the $245k of equity and use it to purchase positive cashflow properties!
Hi Scotty, just curious as to where you're thinking about purchasing if you are going to buy something in melbourne? If you look hard enough (and depending on where you want to live) there are still places under $300,000.
18 months ago I built a 3 bed house for $151,000 and land was $101,000 so total package was $252,000. The current growth rate for the area I live in is around the 14% mark and I could realistically rent my house out for $350p/w at the moment. It is in the outer western suburbs but it's only a 35 min train ride into the CBD or a 45 min (non peak hr) drive.
Alternatively, if you want something in the CBD I was looking at a 2 bed unit in the city (swantston st) that isn't purely uni accom that was selling aroung the $230,000 mark. That unit in particular is currently tenanted for $450p/w with reasonable yearly body corp fees. Not sure what the growth would be on a place like that though but (for my situation at the moment) it would have been a good CF+ place.
I hope this helps you somewhat.
Hi Pleiades,
Thanks very much for that! That certainly gives me hope!
I was looking on the eastern side of melbourne.
The only real requirement for me would be to 'live' in an area in Melbourne where there are many asian convenient stores and such not too far away. The place would really be for my mother, and I think it would be good for her to live in an area where it's not too far away from asian supermarkets, churches, you know, things of that nature. And I have heard the East of Melbourne is pretty much the place for that. Places around Canterbury (which is very expensive!!) and Box Hill etc.
Any good areas which have fairly modern houses (or villages/ townhouse), which is not too far from the city?
But like one of the earlier posters said, it may be an idea to go over there, rent for 6 months to seek out the suburbs myself.
But it's very interesting to hear that you bought land and house for under $300k!! I will certainly be looking at that option also.
I am basically looking for a residential place in melbourne for my mother, not necessarily for investment, but moreso a fairly new small place with at least 2 bedrooms, that isn't too over the top in terms of price.
Then the rest of my interest is to purchase positive cashflow properties. This will most likely be around city/universities whereby you can buy 1 bedroom appartments etc for $200k mark, and the rent is fairly high.
Definately appreciate your thoughts!!
PPOR – Principal Place of Residence.
Got to love acronyms
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