澳洲Australia property Direction for young investor. Town houses


在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo


Hi, my name is William and I am hoping to get some advice and direction with property investment. I'm fairly clueless in terms of anything with real estate.

A bit about me:
• I am 23 years old age and recently graduated from university
• Family members: currently live at home with mother and younger brother
• Income;
o Myself: No income :( currently on the dole, but hopefully will land a graduate job soon @ aprox. 40-50k p.a
o Mother: approx 20k p.a. Wants to retired soon due to age and medical problems.
• Current assets: current home in sunshine north (3020), and plot of land also in sunshine north (3020). Mortgage: zero


So here is the gist, my mother wants to retire and was thinking of selling our current home and build a new house on our plot of land. However, I feel that it would be a waste to a possible investment opportunity.

From my understanding my current suburbs value is on the rise. In addition, student accommodation is on a shortage due to our recent boom in education exports.

My proposal is to build towns houses on our current home, and over time use the money build/pay back for the town houses and a new house on our empty land. My current home is situated on a main road next to a McDonalds (2nd house away from it). There is also back street access. I believe my current home is long enough and accommodate up to 3 town houses.

Doing the math, to develop 3 town houses will cost about $400k?, average rent is about $165 per week, so that works out to be a return of $102,960 p.a. so that can pay off the town houses in 4 years or so. I will be the only person working :( but hopefully we can get a lone using our properties.

Furthermore, in the future if possible purchase my neighbours property (one in between my house and maccas) and developed there also. Not to be disrespectful or anything, but my neighbour is also ageing and possibly pass away soon.


So that’s my 2 cents. Is that a good idea or am I dreaming? Advice and direction would be much appreciated.


Cheers,

William  

评论
G'day William,

Welcome to the forum.

You've taken a step in the right direction deciding that you want to improve your financial future!

I would suggest the following (which hardly anyone i've suggested to takes this up)
is to educate yourself first by reading books.

Books on Saving/managing money, wealth creation/mindset. You can get these books really cheap from garage sales. Eg Books the RRP for like $30 i've purchased at local garage sales for 50 cents.

Ask lots of questions, seek information, talk to people about it and from all the info you recieve form your own opinion's.

But yeah educate yourself, get a job, start saving

Regards,

RH  

评论
Hi William,
isn't it better to build on the vacant block first?

1) where'd your family live if you built 3 townhouses on your current PPOR?
2) your estimate of 400K is too low. Each townhouses will cost 160K+ I'd budget for 200K per townhouse = $600K

It depends on the size of the land. If the vacant block is only for 1 house, it'd cost around 200K to build a 3BR 2bathrm + garage home. Worth $300K?

It'd rent for $250 pw so the income would be around 10K p.a.

The cost of the building can easily be drawn from your existing PPOR

At the finish, you'll have something like this:
PPOR = freehold
PI loan = $200000.00 with income $10000 nett, almost enough to hold on to the new house.

If the construction loan is in your name, you might qualify for the concessions [can be up to 24-25 thousand]

Obviously, a major problem is the lack of serviceability i.e. lack of income

KY  

评论
Hello William,

You could look at a joint venture between yourself and another party (i.e. experienced developer) to do the project. They could assist you with their knowledge, experience and income, but of course will want a portion of the profits in the end.

You could also look at doing the neighboring block at the same time, and may find you could fit 7 townhouses this way (instead of 3 + 3).

But as above, the best thing to do now is to educate yourself through books, free seminars, magazines, audio tapes etc. Also look at the council development plan as to what can actually be built on the blocks.

Best of luck!

Opulence  

评论
i see kids wanting to profit from there parents all the time.
is this your plan or your mums plan.  

评论
i cant see the math being correct at all (but i could be missing something). $165 per week times 3 = about $24000 per year and so it will take you far more than 4 years to pay it off. Also where will you live while you are building the town houses?
I will be interested to hear how you go with this one.  

评论
What you're proposing is very high risk. From your point of view you're young and if you stuff up you have years to recover, but from your mother's point of view this is very risky.

Look at your post. You say you're pretty clueless about real estate. You're not doing your mother a favour with this suggestion.  

评论
Did OP mean $165 per BEDROOM as in he's renting out to students or something?

So it is $165 x 4 (bedrooms) x 3 (number of units) x 52 = $102,960.  

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