Hello everyone, I was initially shy to admit my age, but after reading posts by a 14 year old, I might aswell ask a few questions!
To start off with, my parents own the house that we are living in, in a relatively affluent area of Sydney. It is a small house on a 984m2 undeveloped lot. Is it viable for me to save money now for a deposit, get a mortgage in my late 20's to develop the land, and make 4 dwellings on it (2 Duplexes)each with a single strata title, and put them up for rent shortly after?
Or perhaps give one unit to my parents and live in one myself (no privacy!) and rent/sell the other 2?
Have I grasped the concept of property investing properly?
Regards,
TM.
Hey TM,
I am much the same age.. 20, and loooking to purchase a few investments properties atm….from what i have discovered it is not all that easy to just sub-divide and develop…you have to be careful of the particular land zonings for the area….and also what sort of local council is in power, for example; a more developmental council will approve such developments much easier than a conservative green coucil would…once you look into the zonings you may find one dwelling on the land is permitted only…
definitly its much harder than "knock down and rebuild"Good Luck Bud
AlfistaThanks alot for the advice man
.I have read that my council (Hornsby- probably the greenest council ever haha) allows 1 dwelling per every 400m2 provided that 60% of land remains undeveloped….A bit tough indeed but possible with a good design for the houses I trust.
ON close to 1000 m2, 40% equates to only 400m2 ie 100 m2 per dwelling not much by today's standards however there may be other opportunities eg 1 pair of duplexes @ 200 m2 each or possibly SEPP5 units for the over 55's if your block meets SEPP 5 conditions which override council.
Hi TourMaline ,
To wait maybe 10 years to start is probably counterproductive for you . If your parents are agreeable you could use the equity in their house now . A line of credit on your parents property could let you do a deal with your parents and maybe not use any of your own money . If you bought in a cheaper area and did a renovate and sell or a subdivide and hold you could finish up with a much better bank account . The best part is you would use the banks money and potentially pull money out of fresh air . You could perhaps do several deals inside the ten years.
Good luckRodeo
Wow thats an amazing idea, basically using the equity to service the loan? I need to chat to dad about this.
There is alot of money to be made in property investing- how exciting.
Thanks alot for your advice.
TM.
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