All Topics / General Property / House and Land Package…Good or Bad Decision?

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  • Profile photo of PEACHYPEACHY
    Member
    @peachy
    Join Date: 2004
    Post Count: 78
    April 17, 2011 - 5:44 am

    Hi Everyone,

    Had a search through the forums and didn't find exactly what I was looking for so…

    My husband and I have just bought our second IP, a 3 bed house in Toowoomba for $285000, rented out at $310/week.
    Our first property was a joint venture (50/50) unit in Freshwater (NSW) which we bought 3.5 years ago for $510000 and rents out at $490/week.

    Our joint income is $131000 and having just settle a month ago our savings is $0. The thing is I have the bug and I want another IP asap. At the age of 30, kids are in the not too distant future, so time is ticking to get as many places under our belt as possible. Saving a deposit of around $30K would take us around a year but there are areas that we are interested in now and don't want to miss the boat.

    I have always believed that I would never buy an off the plan, house and land package type property, however this idea has been suggested as a possible way to obtain the next IP faster. We are not interested in the rental guarantee type as we would only buy in an area where our due diligence would support good rental returns anyway.

    We have been down the joint venture path and can see the drawbacks.

    I would love to hear about your experiences, Good and Bad, when purchasing a house and land package. Do you have strong opinions either way about this style of investment? Do you think we are just being impatient considering this or can you suggest other ways to fast track our ability to purchase?

    Thanks in advance!
    Peachy

    Profile photo of bardonbardon
    Participant
    @bardon
    Join Date: 2004
    Post Count: 557
    April 17, 2011 - 6:32 am

    I have done H&L investment before and it has worked out okay even though it took 8 months to complete as opposed to 6 months. Good depreciation etc and in theory a property in good nick. I would say though that in the current market you could buy better in established housing.

    Profile photo of angelinsydneyangelinsydney
    Participant
    @angelinsydney
    Join Date: 2011
    Post Count: 270
    April 19, 2011 - 7:48 pm

    Hi Peachy,

    I may have a solution for you that's safe and involves only minimal risks.  The strategy also includes the possibility of a baby coming into your life sooner rather than later.  A plan should always include a contingency like this.

    If interested PM me here or email me directly on [email protected].

    Take care.

    Angel

Viewing 3 posts - 1 through 3 (of 3 total)

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