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Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of ChrisBirnieChrisBirnie
    Participant
    @chrisbirnie
    Join Date: 2013
    Post Count: 3
    March 24, 2014 - 4:54 am

    Hi Guys,

                       i am considering some different options for making a downsize move. We currently have a 70's BV house in the outer east melb subs, on around 1000 sqm. My thoughts are sell it and but either a smaller exisitng or new unit/small house. Or buy a small block 500sqm or under and build. 

    Or demolish existing house and build 3 units and either sell the lot or keep one and sell the other 2 or rent them out. This option appeals to me however can you really make anything much out of it? by the time you add subdivision, planning etc etc.?

    We own the property outright and i would guess the value at about 420 to 450 in the current market.

    Profile photo of Arun BhutaArun Bhuta
    Participant
    @arun-bhuta
    Join Date: 2014
    Post Count: 41
    March 24, 2014 - 10:34 pm

    Hi Chris,

    There are few parameters need to be considered.

    1. The development rules and zoning.

    2. Quality of homes in near by and likely cost of construction.

    3. The value after construction and potential profit after interest and tax

    4. Benefit you might have based on sale value of property now and not have to pay tax as it is primary home.

    5. Can you get loan for construction based on your age etc.

    Profile photo of Arun BhutaArun Bhuta
    Participant
    @arun-bhuta
    Join Date: 2014
    Post Count: 41
    March 25, 2014 - 4:14 am

    Hi Chris,

    You definitely need someone how can help you draw a business plan as builder, this business plan will have above points as starting point but need more detailed as this is big step. The above points will allow you to consider even before employing someone for business report.

    I myself has gone through this question in near past for my property.

    After investigation I decided to keep the property for a while as zoning has recently changed. New rules has not allowed property values to settle on higher side. Property value are increasing at 25% per annum and may continue for a while. It may be profitable to sale after a while then take a risky option of construction now.

     

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539
    March 26, 2014 - 11:25 am

    I don't really understand the previous post, but cannot say I am an advocate of going with "risky" options.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    March 26, 2014 - 11:59 am

    Chris whilst Arun has painted a simple picture i have to say there are far more considerations to think of.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of RedwoodRedwood
    Participant
    @redwood
    Join Date: 2013
    Post Count: 340
    March 27, 2014 - 1:06 am

    Hi Chris, some amazing advice from the other poster….

    1000 sq metres…..outer east, i'm looking, so send me the details and I might buy it.

    Subdivision – depends on council and ability to build depends on your personal situation – something that we need more information to advise on

    Cheers, Ivan

    Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
    http://redwoodadvisory.com.au
    Email Me | Phone Me

    SMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS

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