All Topics / Finance / residence or investment house

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  • Profile photo of Me999Me999
    Member
    @me999
    Join Date: 2012
    Post Count: 1
    June 21, 2012 - 1:52 am

    Hi everyone

    I am really new here. Know a lot of from this forum, it is such help for me. Now can I ask the question :
    I have the big backyard, I plan to build the double story townhouse at the backyard, and keep the exist house . The questions is if I make the subdivision ,sell or rent the new townhouse,is this still as the residence or as the investment house ? It is confused me recently.

    Profile photo of RyanJDRyanJD
    Member
    @ryanjd
    Join Date: 2011
    Post Count: 77
    June 22, 2012 - 5:48 pm

    First make sure you can subdivide before spending money.

    If you subdivide and build the new townhouse will be an investment because you'll be living in your current house.

    Profile photo of Nigel KibelNigel Kibel
    Participant
    @nigel-kibel
    Join Date: 2005
    Post Count: 1,425
    June 22, 2012 - 8:49 pm

    I agree the townhouse will be your investment. However you need to look carefully at the numbers as you will of course devalue your existing property. You need to look at what the block would be worth and then what it will cost you to build the townhouse.

    Nigel Kibel | Property Know How
    http://propertyknowhow.com.au
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Viewing 3 posts - 1 through 3 (of 3 total)

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