Hey,
There is a property up for grabs on my street with the land size is easily being about 1000 sqm.
It is on the market for $600,000. I have spoken to the real estate agent and they claim they have had one offer at $550,000.
It is a rundown 3 bedroom property and they are looking for a delayed settlement because the lady is moving into a retirement home, so I see the price having some amount to drop.
To me it seems like a good deal as units in a 100+ complex on the same street are selling for about $375,000.
I have my first owners grant to use but no deposit due to certain recent events that have left me in a tight spot.
Would it be possible/good idea to buy the property and put 2 properties on the block, sell one and live in the other? And would it be possible for someone in my position?
I am 20 and can’t say I am the cluiest so don’t be bagging me for my ignorance, I try, lol.
Cheers,
Jacob.‘Stay Happy and you’ll be Perfectly Fine’ – Jack
gday jacob,
hows it going? there are a few things you would have to find out first i think.
1. you would have to find out if the block is suitable for subdivision.
2. it may be hard for you to get finance at 20 (i’m 20 too), so you may need your parents help
3. and i think you would also have to look at what
other houses of the same landsize, size of house, facilities etc, are selling for in your area.i know there are many other things to investigate but hopefully this has helped a little.
good luck
powmow
Cheers mate. I am looking a little further into it with some guidance.
‘Stay Happy and you’ll be Perfectly Fine’ – Jack
Speak to your local council as the first step..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHeh Jacob
20 or not good for you on having a go.
You mention the vendor is looking for a delayed settlement. Why not consider asking if they will consider a Call Option.
You can then conduct all of your due diligence and meet with architects, town planners and Local Council and then if it can be done off load the property to a developer.
An alternative is to look at a family pledge style loan using parents property as security. As soon as the property was built and sold off you could request the lender release the security and guarantee from you parents (subject to your own circumstances and ability to support the loan)
Cheers Richard
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http://www.yourstatefinance.comIP funding and US property finance
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if you haven’t invested before this may be a bit over the top in terms of budget.
even if you bought the land for $500k, to add 2 units would cost another $500k. that’s $1m in finance. to support even interest only repayments would cost you over $1k a week.
to get the finance you would probably need income of $150-200k p.a.
the only alternative would be to get outside financers who are willing to put up some security.
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