Hey, wanted to pick the brains of all the forumites here as i have been thinking about my situation fo quite some time…Here it goes:
1: I have 2 blocks of vacant land in one of the very outer suburbs(=40kms) of melb(narre warren).
2:This land that i bought 3 years ago has since doubled in the price.
3: It is not in the best part of the suburb. Its part of a new subdidvison and all the houses are good and in a very convinient location. Very close freeway and fountain gate shopping center. However the demographics of this subdivision is more towards the lower income.
4: As i will have to build new houses on it(i cant subdivided due to the covenant). Here are my current calculations for that:
– Land Value(current) = 150000
– Construction costs(incl. all finishing costs) = 200000
– Rent expected = 230pw.5: As you can see from above the Rental yield is not very high and iam confident that i can get a better yield elsewhere in some other IP’s.
6: At the moment i am temporarily overseas so my income in Australia is nil. So if i sell now i will be paying the least amount CGT. I understand that i will have to pay GST as well.
I will like to know what some other forumites will like to do in my situation. Iam into IP’s for long term and a believer of Buy and Hold on the whole.
Thanks in advance….
Any advice on this from any of the numerous forumites…
I know nothing about land and building.
Just wondering, can you challenge the covenant?
From what i have i come to know through various posts here its nearly impossible to get the covenants removed.
Although the blocks are adjoining and they will be perfectly suitable for a unit development but i doubt this due to the covenants.
From what i have i come to know through various posts here its nearly impossible to get the covenants removed.
Although the blocks are adjoining and they will be perfectly suitable for a unit development but i doubt this due to the covenants.
Have you seen Kath and Kim at Fountain Gate shopping Centre ?
Perhaps you could build a house and just sell it.
P
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