Hi Guys, Been a long time lurker and not much posting from me. I am in my early 30's and wife is mid 30's we have an 18 month old and another on the way (yay!). Wife is gov employee at $85k and I am self employed around $50k pa. We are in a pretty strong financial position and am trying to formulate a plan moving forward in the next 5 years. Our PPOR is fully offset valued $450-500K IP1 which in coastal west of Adelaide is rented out at owe $425k and valued at $780k. 660 sq m block (26.5 m frontage) IP2 which is next door to us is rented out and recently purchased owing $420k but combine with PPOR gives us 960sq m (24.5 m frontage) to work with in western Adelaide in a housing diversity zone with no minimum block or frontage sizes. Shares about $100k Ideally we want to move closer to the beach which will now coast around the $1.2 million mark. We will talk to a financial planner soon about it but open to ideas. Thanks
You are doing great, not a novice, so far achieved more than most. Is your business related to property - can you add value to future purchases?
No it is not. We have renovated a fair bit on both with what we can do and paying trades for the stuff that requires a license. I think both properties particularly IP1 would be a knock down and subdivide.
Thanks I will try and suss a few out. At the moment it seems everything is selling really well and people are prepared to just buy the subdivided land
You're doing very well. Any idea what your PPOR and the IP next door is worth together? And do you think you'll develop the double block one day? We held two blocks together for 20 (one) and 10 (the second) years before developing them.
Land is currently selling between $900/$1200 a sq m in our area and the block put together in around 950 sq m.... Frontage is 24.5m and 38 m long. Similar block next door squeezed 5 town houses onto it. Probably around the $1.2 million mark. Would love to develop it but I don't think we would ever have the cash flow to finance it. We bought the PPOR in 2014 for $250k and only just bought next door.
Sounds very like our situation. We couldn't afford to develop it when hubby retired aged 50. Our plans to develop were put on hold. But our happiness and ability to allow him to leave work were more important than just making more money. So we made the right decision. It was ten more years before we were in a position to develop and turn two rent producing properties into six on the same land. It cost a lot to do the build, but we now have six properties on that land and the rent has more than tripled.
Leave Adelaide, increase your income, and springboard into property investing in Qld, South East Qld in particular. Live near a beach, or not as you wish. Still develop your Adelaide properties, but maybe don't limit your horizons.
We are currently committed to Adelaide for the next 5 years due to my work area. Family support is also here so not sure moving away from grand parents would be ideal. Increasing income will happen in time here as I transition out of the industry I am in.
Quick update for those who put their thought's out there they were appreciated. Ended up selling both IP1 end of 2022 and IP2 plus PPOR together middle of this year. Bought in beachside suburb where wife wanted to be ( Happy wife, happy life). Happy with the prices we got on all 3 properties enough to allow us to purchase new PPOR mortgage free which with a very young family is a good outcome. Next steps is to invest again in Adelaide.
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