VIC Case Study - First IP

Hi All,

Just wanted to discuss my current plans for IP1 (and potentially IP2);

• PPOR – $500k in Vic, now at 70% LVR (Excludes the $160k savings in the offset account attached to the PPOR). Income $220k pa
• IP1 in the making – $330k for 448m2 land only, located at Werribee Riverwalk Estate, paid 10% deposit. Purchased off the plan in 2018 which is estimated to title in Nov 2019, but the sunset clause kicks in at the end of Oct 2019.

After doing further research (PC forums, podcasts) over some time this year I am now considering whether to pull out from the purchase via the sunset clause and to use the funds for an IP elsewhere.The alternative IP2 will have following criteria; 600m2+ land with proven development options, close to public transport, education, 30mins drive to the CBD (my focus recently has been mainly in north Brisbane)

Interested to know your thoughts on;

• IP1 being in Riverwalk estate as a long term buy and hold
• If Riverwalk still looks feasible then would keeping Riverwalk IP1 and getting IP2 be a reasonably good move
• Mortgage brokers – better to use engage one locally in Vic where I can pop in to have a face to face discussion - Myth or truth?

 

Hey CM,

Here is your answer: 13 Aylesbury Terrace, Werribee, Vic 3030

Can you build a 4 bed, 2 bath, 2 car for under $170k?

 

Why 170k?

 

170k is just an arbitrary number based on the following:
330k land cost + 170k build = 500k total (+ holding costs, landscaping etc..)

It wouldn't make sense (to me anyway) from an investment point of view to go through the hassle of holding onto land which you can't rent and building a new house if the value in the end is the same (~ within 10%) or worse as buying a newly built property today, which can be rented straight away + utilise tax benefits and has less risks.

 

Sound advice, thanks

 

That's great advice, and I'm getting the impression you may already know the answer here.