My wife and I have recently purchased a block of land in Tasmania (approx $26000) and we are now thinking of ways to turn this into a cash positve property. Obviously we would need to build on this block, but have no idea where to start or what costs will be involved. If anyone has any suggestions to help us get started, that would be fantastic and i would love to hear them.
Where is the property? What suburb/area?
There is still a 8+ months wait on ‘good’ builders down here, but that should mean you wont rush into any thing.
J
Hi Kaleb,
Soory to rain on your parade but I believe you needed to find out the answer to this question before you bought the block.
Without knowing Tasmania, the block, building costs etc it is very difficult to provide any diefinitive advice other than to say – speak to local REA and see what property types are most popular in the local area and what comparable rents can be expected. Then consult with a builder, home relocater, kit home builder to determine likely housing costs. You will also need to find out from the local council what restrictions/requirements they have.
Hope it works out for you.
Derek
[email protected]Read my comments? Think I can help you? PM or email welcome.
Thanks for the posts. The block is in Ravenswood which is a suburb of Launceston. We actually bought the block before I had read 0 -130 and were just going to use it as a buy and hold. But now, after reading the book, we are thinking of ways to earn money on the purchase. We are both very new to the property game, so we are learning as we go, but at least we are doing something.
Have you by any chance been to Ravenswood?
It is similar to the Clarendon Vale of the south. Ex housing commission, rough neighbourhood. Can find some good tennants there.
IMO I would either build a very stock house, 3/1, or maybe a couple of small basic villa units.
Check the rents going on similar places, which should give you an idea as to how much you can spend.
Banks, I think, will require a larger deposit, or smaller LVR for building.J
Check out a removal house or a bugdet 3 + 1 brick home. Be careful not to overcapitalise on what is quite a cheap block.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks for the advise again. In response to “j”, yes i have been to ravenswood as my parents live in Tassie. The block is in a better part of the suburb (if that makes sense). And while it is a housing commission estate, the ones up here in Qld have shot throught the roof, because it became the only affordable housing very quickly for a lot of people. The problem with removal homes is that Tassie isnt to big on them, from what i have heard.
Kaleb
Hello Kaleb,
New and learning and sort of in the same situation. Curiosity …..what did you finally decide?
Cheers Michelle? [chef]Suggest creative housing STCA I saw a train carriage with 3 br, kitchen bathroom everything, for 23k. Maybe buy for 18k, spend 5k reloactikng it, even then you will need 100 per week plus for a good return. Or maybe look for a house to relocate?
Or maybe just forget you have the block and buy an established house.Roy
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