First Home Buyer with lots of questions

Hi All,

I am a first home buyer looking for my first home in Sydney. I have been saving for a long long long time and tired of paying rent. I am looking at all options under the Sun which have development potential of a duplex site in future as I plan to save more and build one. Please help me identify any potential pitfalls and ideas you can share from your journey.

Appreciate your time and help.

Cheers,
Avkos

 

Whats your experience with building?

Budget? Have you talked to a mortgage broker yet?

 

No Experience in Building, will contract a master builder 7-9 years from now.

Budget: 950K (pre approved), Location: Near Revesby NSW.

 

My point being, what makes you think you will be able to make money building? Especially doing it by demolishing your PPOR?

You could, for example, just buy an IP.

What LVR is the 950k based on?

You say you have no experience but you have a fairly specific plan. Might be worth questioning whats behind those plans as you learn.

 

LVR is based on 190K deposit and 40K for stamp duty, $760 Loan.

I don't think its unreasonable to think (could be wrong) that a $950K land in NSW suburb which is already touching $1m mark - of (size: 600 sqm + ) which could be worth 1.2M in 7 years approx. (If we aren't hit by recession or worse depression). if the location is right.

So, If right land is bought now - with right kind of savings and construction loan - one could engage a builder to build duplex - a basic one (4/2/1 config. x2 ) costs 650K I think from research (Luxury one may be $750K+ ).

But, I am here to learn so I want to know if in your experience its unrealistic to expect such numbers or I should stop dreaming and just focus on a single story house with best possible location- reap profits in 7-9years.

How should this be approached? I want to buy land in my budget which will appreciate and then subdivide, build duplex and sell both. Keep profits and invest again. I am sure there are alot of other factors to consider.

 

it will likely cost more, and take longer than you anticipate for the duplex build... but i'm guessing that is something you had expected.

From a contractual point of view, just make sure the land allows you to do what you need to do, and that there aren't any restrictions. have a chat to whoever is acting for you on your purchase, they will be able to tell you