Seeking Advice for Young Couple - JV Duplex or Existing Duplex - SYDNEY

Hi,

We are a young couple who already have a positively geared IP property in Brisbane being rented out, we are currently residing with the in-laws and would like to move out.

We have 200k deposit + savings, we are tossing up between these ideas at the moment.

1. Purchase an already existing Duplex for around $920k and make this our PPOR. Problem is that most of Duplexes we have seen are small, layout isn't the best and finishes are pretty bad.

or

2. Find a JV partner, buy land and build Duplex. We keep one duplex and the JV partner keeps the other, then we can move in and make this our PPOR, I'm thinking the spend will be around $850k each. Problem is I don't know where to find a JV partner.

Please help if you can.


ta

 

OR find older Duplex with Renovation potential and do it up yourself!

 

Much better idea and muuuuch less risk involved .

 

$920k for two houses and minimal risk, or $850k for one with potentially massive risk.
No brainer here.

Spend the $920k, live in one, rent the other.
Build some funds and renovate to your liking.

 

@mikey7
I think you might have misinterpreted them.
I think $920k is ONE of the Existing Duplexes.

Their alternative is to buy land, and build a duplex, where the end product is then split between them and JV partner.

So its
$920k for ONE Half of the Duplex (Existing) vs $850k (potentially) for ONE Half of the Duplex (New)

 

Ahh yes, I think you're right. Disregard then

 

I think there is likely to be better value, much less risk and time delays if they buy an older duplex in the area and maybe just update it.

 

@DVP - Have you considered a property which has a granny flat/GF potential and live in the GF after it has been built. Can't be worse than living with the inlaws.

Jannali
Kirrawee - Kirrawon't - Kirramight
Gymea

Some of these have a GF & house needs work or needs a GF.

 

Thanks for the advice, we have some thinking to do...

 

You or your partner may have prior development experience not mentioned but these GF options could be a good way to learn the development process on a smaller scale and then step up to the JV sort of deal you're floating

 

At a total spend of $1.7m I think you're really going to struggle getting away from what you see in point 1) which is a small duplex with poor finishes. How much are you budgeting for the block of land & what location?