Hello Investors
first time poster long time lurker
a little about my current position .
I currently have 2 IP one of them i bought significantly under value and did a few minor cosmetics and added 25k in 3 months and re mortgaged to purchase the 2nd .
The first property is currently valued at 225k its a 2 bed with a double garage with a shower/toilet and walk in cupboard in the garage . it also has a carport .
I am seriously considering turning the garage into a self contained granny flat and re renting to a potential large family (target audience) increasing the rent of course .
A 3 beder in the area goes for around 280k . so my aim is to spend roughly 10k for the conversion and hopefully be able to re mortgage at hopefully around the 270k and buy a 3rd IP .Can anyone offer and input to my situation am i being to ambitious ? what do you see as negatives i.e. to subjective to renters
Please keep in mind I am only 21 years old and I live and breath investing . My strategies so far has worked and I hope to buy in the upper hunter region shortly as a see a great opportunity to get into the suburbs most affected by the down turn in the coal mines .
Any input would be greatly appreciated .
Hey buddy
Awesome work on a couple of IPs at 21!
I prob wouldn’t compare a two beddie with GF to a three beddie when working out anticipated value.
Whilst your adding a bit of value with the GF – you’re also removing car accomo.
Are the plans council approved?
All in all – I’d do it, even if it doesn’t value up much higher – the yield should be quite strong considering the small outlay.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Jamie
Thank your reply . No not approved yet as just in the thought process still .
My goal of adding the GF would be to add enough value to purchase a third and the extra yield would be a bonus.
I do realize that i would be subtracting a car space but i think for valuation sake the GF would out way the double garage.
Hey Buddy!
Awesome work with 2 IPs.
Personally, what renovations I do depends on the IPs location. If its in an inner city location where street parking is scarce or theres no space out the front to park a car than that double car port is your friend. I would give the home a facelift and advertise the ample car space.
Alternatively, if the home is in a safe area with plenty of street parking then go for gold.In my experience GF’s can add great cash flow, but they don’t always generate great revals or impress banks regarding equity. Every case is different of course, but in the burbs this is a common issue.
Re the hunter if you are trying to find the bottom of the market you might well be close. But just be aware it might be a loooong road back. Buying into a market catching a wave of capital growth right now might increase the speed with which you can do your next refinance and purchase again.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
hello guys
just a update n the Granny at idea
After speaking to number of agents in the area and builders I have gathered a lot of information .
Firstly My managing agent believes it is a great idea and I could potentially re rent the house and self contained GF for a minimum of $310 PW ( it is currently rented at 270pw) it is in my opinion that a conservative r valuation at 240k I very possible .
this would make my monthly position positive $541 not inc rates etc which In my opinion makes sense .I have organised some quotes for next week and I will update then with figures.
Btw my tenants have currently agreed to a $5 increase so $275pw with a new 12month lease so I am weighing up my options
You must be logged in to reply to this topic. If you don't have an account, you can register here.
