I have a block and am now considering what to do with it, sell, or would it be worth looking at building and renting it.
To help answer your query it would be great to know what you want to achieve, and a little more dteail about the property – where is it, what would you uild, waht type of return?
Otherwise it is hard to give a relevant answer
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auI’m with Mike – clarity of the project would be good.
what is it
when did you buy it ($xxxxx)
value 2day ($xxxxx)
how big is it
what is the current zoning
will the council approve multi dwelings on it
where is it
whats it next to
near by transport?
distance from cbd
current growth of the area
value of similar properties in the area
what is your own personal opinion
do u have an architectresiwealth
Hi, sorry for not responding earlier, have been waiting on feed back from realestate agent for current sale value of block.
Block was purchased 2002 for 87,000. It is 775m2 for single dwelling. Located at tarniet (Werribee Vic).It faces a park and is stroll away from river. Selling price $165,000 aprox.
A 4bdrm 2bthrm study,garage home on the site could fetch $250-$270 rent pw. Would be rented out to company exec, doctors and other hospital staff ect which work in the area. A house could be built for around 160,000 (24- 28 sq.) Land is paid. Have to borrow to build. The rent should cover most of the repayments, to give me positive cf I would need a rental return of $320. Would this work, I don’t mind making up the difference, Is there a better option? [confused2]My first impression of this senario is that you have under estimated the constructing costs greatly! Make sure you have taken everything into account.
What will you be buying for 160K ?
Will it be the finished product ?
Have you gotten Quotes from builders?
Have you taken into account the fees asociated with building like the architect costs surveyor costs or council fees ?In my opinion i think that the house your wanting to build will cost you over the 200k mark to build. You need to reserch it a little more.
hope this helps
“It’s not how much money you make, It’s how you spend it that matters.”
Aspiring property developer
Giulio Taranto
have you considered building two side by side (adjoining roof) your block would be large enough, you would probably need to charge less in rent but you would be getting double and the cost fo building should not be alot more
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