We have a 700+ square land in the Hills District in Sydney with a 3-bedroom house (30+ years old) and we need a larger home + an IP. Appreciate any general advice on these options: 1. Knockdown and rebuild a dual occupancy. 2. Move into a bigger and new rental property and rent this property. 3. Sell current property and buy elsewhere. Only after any other options and general advice as our financial situation will play a bigger role for a more tailored answer. Thank you in advance.
1. Do you have time for approvals? If yes, work out by spending another 800k, how much you would be getting? Probably, 1200-1300 a week. makes sense to me. 2. How much have you bought this property at? If you follow 1, you anyhow have to rent. But if you want to buy elsewhere, you can save money. it also depends how much this property is costing you to hold. 3. why would you sell? not a good market to sell. if it is not costing you to hold, you should not be considering to sell or buy in NSW. These depends on your budget, borrowing, current holding costs, future lending restrictions impacting you, cash flow, goals. Regards
Thank you for your response ashish1137. Current value of the property is around $900k. spending $800k plus another $100k (moving, 12 months rental while building etc) will give us two properties. No holding cost as it's fully paid. Your point no 3 makes sense as we looked at some land closer to the metro line and they are all over $1.2m for a 700+ sqm plot
Well wow. If it is fully paid out, here is another option. Because you already have the land and you only need to build: 1. Can you subdivide along with the existing house? If yes, build just one and keep the old one. 2. Why spend now when you have the base (i.e. land). If you can follow.1st, you still have money or say even if you cannot follow first option.. Better to wait and buy something in Sydney in a year (when the time is right) that expands your portfolio and you can come back to building later to increase cash flow. This way you accumulate more assets and keep existing assets for future expansion. However, again this would depend on your persinal situstion, future savings pattern, etc etc. Just what I would have done had i been in your place. but i am.not an expert. So assess your numbers and choose wisely. Regards
Given the current costs.....of building in Sydney...you would be better off selling the house and renting for about 18 months. The Hills district is going to have quite a few distressed sales as people have got in over their head. If you are looking at Baulkham Hill, Castle Hill, Kellyvile, Rouse Hill, Ponds, Cherrybrook, West Pennant Hills...I reckon you will get a larger house for much less. Why because the demand for huge homes are waning....
Here something to back up what I am saying. CastleHill/Cherrybrook/Baulkham/Kellyville/Rosue Hill in particular will present opportunities. These are higher priced and people can get the loans to get in. 'I’ve had my pick of properties': Market easing for Melbourne renters What you need to know about upsizing now that the price gap has narrowed
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