All Topics / Help Needed! / 2 houses – 1 title… PROS AND CONS?

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  • Profile photo of goldiesgoldies
    Member
    @goldies
    Join Date: 2010
    Post Count: 115

    Hi all,

    I have offered on a property which is 2 houses on 1 title. When listed on realestate.com – it was listed as 100-102 whatever street, MUST be sold together. I have the RP data report which lists them as 2 seperate houses with their own block but they are on one title. They share a common wall so they look like 2 semi's stuck together.

    Was thinking at first it was a good score, almost 2 houses for the price of one, considering the price we got them for.

    Am now thinking further down the track that we could probably only sell to investors if we wanted to sell… as they must be sold together

    Can anyone think of any other pros and cons for this purchase?

    One big pro is that one side is vacant which we will immediately renovate and with the equity generated, complete the second renovation later down the track when tenant vacates. (we dont have funds to renovate both now anyway) but as mentioned in a previous forum topic i posted, a con of that is the reval could be dragged down by the fact that one side needs alot of work and one side is immaculate…

    Any thoughts welcome…

    Profile photo of CatalystCatalyst
    Participant
    @catalyst
    Join Date: 2008
    Post Count: 1,404

    What do you mean by "one side" is vacant? One house is vacant?

     Is it 2 separate houses or one split in 2? Makes a big difference.

    Profile photo of goldiesgoldies
    Member
    @goldies
    Join Date: 2010
    Post Count: 115

    Its 2 seperate houses. They come up as seperate numbers on RP data, have their own blocks but have been sold as one, there is 1 contract. there is 1 wall that joins them

    2 x 3 bedroom houses. 1 is currently vacant

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hi Goldies

    The major pro is probably the cashflow – I'd imagine the yield would be quite good if the purchase price is comparable to one property.

    If you could sub-divide later on, then it's an extremely good find!

    The major con is what you've alluded to – there will be a limited scope of interested buyers in the future.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of goldiesgoldies
    Member
    @goldies
    Join Date: 2010
    Post Count: 115

    Hi Jamie, I have my fingers crossed that I am onto a real winner later on down the track

    First and foremost the cash flow is brilliant 14.8% after spending approx $12k on renovations for each house. ( we do it ourselves so don't pay labour costs) and its in a town experiencing good growth with rental yields having recently gone through the roof also. This is my new favourite town! Plus when done, should have made 80% equity gain, simply from a lazy vendor who didnt want to touch the 1950's decor and cracks in walls and didnt want to hold onto it and wait for a high offer, skyrocketing rents and my countless hours of research then hard ball negotiating.

    I love property!

    Profile photo of goldiesgoldies
    Member
    @goldies
    Join Date: 2010
    Post Count: 115

    The median house price is $200000 approx. We got both for $182000.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    goldies wrote:
    Hi Jamie, I have my fingers crossed that I am onto a real winner later on down the track

    First and foremost the cash flow is brilliant 14.8% after spending approx $12k on renovations for each house. ( we do it ourselves so don't pay labour costs) and its in a town experiencing good growth with rental yields having recently gone through the roof also. This is my new favourite town! Plus when done, should have made 80% equity gain, simply from a lazy vendor who didnt want to touch the 1950's decor and cracks in walls and didnt want to hold onto it and wait for a high offer, skyrocketing rents and my countless hours of research then hard ball negotiating.

    I love property!

    Yep, sounds pretty sweet! Well done and congrats!

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of goldiesgoldies
    Member
    @goldies
    Join Date: 2010
    Post Count: 115

    Ok so we have the contract, it is 2 houses, 2 titles, sold in 1 line.

    The building report shows no fire wall seperating the 2….

    Have I hit a mini jackpot here now that I can sell them off individually or could I be missing something? seems to good to be true….

    Profile photo of PaulliePaullie
    Member
    @paullie
    Join Date: 2009
    Post Count: 217

    I came across something similar. Two houses one title. Unfortunately it was going for a little too much than I could handle at the time, otherwise I would have bought. Cashflow was excellent.

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