Hello community. I have recently purchased my second property and my first investment property. I am split between what I should do. It’s a 3 bedroom house on a block size is 850m2 in east Bairnsdale and has a side entry making it suitable for sub division. I am thinking of selling the block of land at the back and I’ve estimated I could get 130k and I purchased the property for 300k so it would help to buy another property in Adelaide where I’m looking. Other alternative would be to build a unit or 3 bedroom out the back whilst keeping tenants in the front property. I would then lease the back out essentially turning it to two properties. Thanks for any thoughts in advance.
Hi Daniel,
I hesitated to add my thoughts for a couple of reasons – 1. because I have never done a subdivision before, and 2. I don’t know Victoria. But, since no-one else with more experience has stepped in, I thought I’d have a go. If nothing else, my thoughts might help you to choose your path, based on the questions I ask.
First off, with that size of block, I suspect you would have NO problem subdividing it. But could it even become three blocks? Also, if selling, you would likely have to have subdivided the block already – or have you already done that? If yes, then have you considered getting a DA prior to offering it for sale (I have heard this can add value to the buyer/builder – but it also can add delay at your end – just a thought).
If you HAVEN’T already subdivided, maybe check with a Town Planner to see what your options are (i.e. should you subdivide into two or three blocks, maybe consider building a duplex rather than just a single dwelling on the second block, etc). In the end, the “numbers” will tell you what is the financially best answer for you. As well as that, can you afford the TIME it would take to accomplish all of the above (depending on which way you jump)?
Consider too, Steve’s sage mantra – make the most money in the quickest time with the least risk and lowest aggravation. i.e. the “most money” way might well be to attempt to build a duplex on the second block, but that has an effect on the “time, risk, and aggravation” parts of the equation. Would you be up to handling those? Or is it better to “quit this one quick” and go ahead with the Adelaide option?
Good luck with your decisions, :)
Benny
Hey Benny
thank you for your reply.
I think I might hold on to it and when I have more funds later on down the track build some town houses.
The only problem with selling the block at the back is the bank will take the money meaning I’ll have to go through them again.
Do you have any thoughts on a good investment property for 300-350k In your state where your from.
thanks mate
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