Hi,
I'm looking to purchase a corner block house in laverton which is 600m2 and to build three 3br townhouses. The property on the block is 30 yrs old and rented for 250 per week.
I'm very new to property investing and would like to get an idea of the costs involved in council approval/demolishing/construction and any other costs involved.
Also I have heard Laverton is an area which will become similar to Glenroy and Altona.
My husband and I are earning above 160K per year and have almost 50K saved up.
Also are there any good websites that i can get a quick crash course on property investing?
Hi Senajav,
To get an idea of costs you’re best speaking with a town planner. Calling council will give you a very rough idea, however private planners will give a much more thorough assessment of the project outlook.
In regards to your investing question, much knowledge is acquired over time and talking with other people on forums like this. If you need some quick learning then Steve’s books are very good and informative.
Cheers,
Hi Senajav
I will let someone like Ashley more qualified than me to comment on the mechanics safe to say have you considered the financing.
Unless you have equity in another property you wont get far with $50K in the development finance world.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Senajav
I've purchased a corner block in Laverton last year and thinking of doing the same. Problem is Laverton is still 10 years away. You really have to buy, sit and wait it out.
I literally wrote a very similar question yesterday… crazy. Lavo is slowly undergoing gentrification i reckon.
Hi Senajav
I agree with Richard in that $50k won’t go far in terms of undertaking a development. Have you considered starting a little smaller – say an existing well-located townhouse or small stand-alone house? Also, are you considering Laverton only, or are you looking in other areas? In my opinion, unless you’ve found yourself a really red-hot deal, you could get a better return on your investment elsewhere. Just my opinion.
Cheers
KrisHi Senajav
I agree with Richard in that $50k won’t go far in terms of undertaking a development. Have you considered starting a little smaller – say an existing well-located townhouse or small stand-alone house? Also, are you considering Laverton only, or are you looking in other areas? In my opinion, unless you’ve found yourself a really red-hot deal, you could get a better return on your investment elsewhere. Just my opinion.
Cheers
KrisThanks everyone. I am thinking of purchasing and renting it out and after a few year (4 -5) building on the property when we have better finance.
Richard how much finance do you need?
I have heard purchasing withing 1 km to a zone 1 station is the best for investment. Hence why i chose Laverton, as it is currently cheaper than most surburbs near a zone 1 station.
Senajav assuming we could get 95% lvr then you would still need to come up with 5% deposit us your acquisition costs and Stamp Duty alone is going to take a fair share.
Would need further information to properly crunch the numbers for you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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