Hi all,
I have offered on a property which is 2 houses on 1 title. When listed on realestate.com – it was listed as 100-102 whatever street, MUST be sold together. I have the RP data report which lists them as 2 seperate houses with their own block but they are on one title. They share a common wall so they look like 2 semi's stuck together.
Was thinking at first it was a good score, almost 2 houses for the price of one, considering the price we got them for.
Am now thinking further down the track that we could probably only sell to investors if we wanted to sell… as they must be sold together
Can anyone think of any other pros and cons for this purchase?
One big pro is that one side is vacant which we will immediately renovate and with the equity generated, complete the second renovation later down the track when tenant vacates. (we dont have funds to renovate both now anyway) but as mentioned in a previous forum topic i posted, a con of that is the reval could be dragged down by the fact that one side needs alot of work and one side is immaculate…
Any thoughts welcome…
What do you mean by "one side" is vacant? One house is vacant?
Is it 2 separate houses or one split in 2? Makes a big difference.
Its 2 seperate houses. They come up as seperate numbers on RP data, have their own blocks but have been sold as one, there is 1 contract. there is 1 wall that joins them
2 x 3 bedroom houses. 1 is currently vacant
Hi Goldies
The major pro is probably the cashflow – I'd imagine the yield would be quite good if the purchase price is comparable to one property.
If you could sub-divide later on, then it's an extremely good find!
The major con is what you've alluded to – there will be a limited scope of interested buyers in the future.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Jamie, I have my fingers crossed that I am onto a real winner later on down the track
First and foremost the cash flow is brilliant 14.8% after spending approx $12k on renovations for each house. ( we do it ourselves so don't pay labour costs) and its in a town experiencing good growth with rental yields having recently gone through the roof also. This is my new favourite town! Plus when done, should have made 80% equity gain, simply from a lazy vendor who didnt want to touch the 1950's decor and cracks in walls and didnt want to hold onto it and wait for a high offer, skyrocketing rents and my countless hours of research then hard ball negotiating.
I love property!
The median house price is $200000 approx. We got both for $182000.
goldies wrote:Hi Jamie, I have my fingers crossed that I am onto a real winner later on down the trackFirst and foremost the cash flow is brilliant 14.8% after spending approx $12k on renovations for each house. ( we do it ourselves so don't pay labour costs) and its in a town experiencing good growth with rental yields having recently gone through the roof also. This is my new favourite town! Plus when done, should have made 80% equity gain, simply from a lazy vendor who didnt want to touch the 1950's decor and cracks in walls and didnt want to hold onto it and wait for a high offer, skyrocketing rents and my countless hours of research then hard ball negotiating.
I love property!
Yep, sounds pretty sweet! Well done and congrats!
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Ok so we have the contract, it is 2 houses, 2 titles, sold in 1 line.
The building report shows no fire wall seperating the 2….
Have I hit a mini jackpot here now that I can sell them off individually or could I be missing something? seems to good to be true….
I came across something similar. Two houses one title. Unfortunately it was going for a little too much than I could handle at the time, otherwise I would have bought. Cashflow was excellent.
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