All Topics / Help Needed! / BEGINNER!!

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of ChanelleChanelle
    Participant
    @chanelle
    Join Date: 2012
    Post Count: 2

    Hi everyone I’m new to property investing & propertyinvestment.com, so please be patient.
    I’m looking to buy vacant land in the western suburbs of Sydney & put a granny flat on it & rent it out until I may develop or sell at a later stage.
    Is this a wise idea or is there anything else you would suggest? Also would anyone please be able to give me some insight into what suburbs
    they think I should be looking at & why. I have been looking around Camden & Penrith areas.

    Thank you & sorry for being vague!

    Chanelle

    Profile photo of NHGNHG
    Member
    @nhg
    Join Date: 2010
    Post Count: 198

    Hi, and welcome!

    There's a number of individuals on this forum with properties in Sydneys West who may be able to provide some useful advice :)

    First question, is this purely and investment? What are your goals/aims?

    My own personal experience has been the high cost of construction and current land values in the area make construction a poor investment at the moment. I am constructing 2 granny flats in St Marys and tended to find vacant lots with just granny flats were unviable and overprice by the seller.

    I have however found a good deal just last month, a brick veneer house with a second dwelling for $320k (all fees inclusive). Needs about $20k worth of work tho. It took a lot of stressful negotiating, I had to find a place for his mother who was the current tenant to live, thus the lower price (tho in hindsight could have bargained harder).

    My focus was on areas in close proximity to train stations, and other amenities, (St Marys, Kingswood, Werrington, Penrith etc) those areas ticked all my boxes, tho a few individuals have made great deals in places like Tregear etc.

    I have bought 2 properties there, now am being more aggressive on my bargaining for cashflow positive properties. I don't think i'll find those in Sydney's West due to the high volume of 'investers' there recently willing to pay what I would consider too much for a property.

    Am also keeping an eye on Camden, a friend of mine has over 20 residential and commercial properties there, tho his strategy is hard to copy, he loves it there.

    Regards
    NHG

    Profile photo of ChanelleChanelle
    Participant
    @chanelle
    Join Date: 2012
    Post Count: 2

    Hi NHG
    Thank you for your reply.. At the moment I am renting & I was considering buying land to put a granny flat on for my sister to rent out & for me to move in to, she would be my tenant though, do you get where I’m going with this?

    Vacant land is more affordable than obviously the blocks with a house in place already, I was hoping to eventually rent it out once I move on & then one day when the market is right sell it or develope it.

    I was looking at land that already has DA approval, I’m just dipping my toes in the water at this point, I don’t know much about this. I’ll get there I’m sure.

    So would you suggest land or house?

    Thank you for your help!!

    Profile photo of BrazenBrazen
    Participant
    @brazen
    Join Date: 2010
    Post Count: 47
    Chanelle wrote:
    Hi everyone I’m new to property investing & propertyinvestment.com, so please be patient.
    I’m looking to buy vacant land in the western suburbs of Sydney & put a granny flat on it & rent it out until I may develop or sell at a later stage.
    Is this a wise idea or is there anything else you would suggest? Also would anyone please be able to give me some insight into what suburbs
    they think I should be looking at & why. I have been looking around Camden & Penrith areas.

    Thank you & sorry for being vague!

    Chanelle

    Hi Chanelle,

    You CANNOT build a granny flat on a vacant block. Granny flast must accompany a primary dwelling- it’s why they call them ‘secondary dwellings’.

    Serge.

    Brazen | Granny Flat Approvals Sydney
    http://www.grannyflatapprovals.com.au
    Email Me | Phone Me

    Granny Flat Approvals Guru

    Profile photo of WomeninPropMelbWomeninPropMelb
    Member
    @womeninpropmelb
    Join Date: 2008
    Post Count: 234

    Why not build a small house? Probably about the same costs.

    Profile photo of Nigel KibelNigel Kibel
    Participant
    @nigel-kibel
    Join Date: 2005
    Post Count: 1,425

    Chenelle

    It is very important to do your due diligence carefully before proceeding. Most people loose money because they make hasty decisions based on bad advice. So do your own due diligence very carefully. So ask the following questions. Is the area you are investing in the best for growth? Should you be looking at other markets? Maybe you by an renovate an older apartment? My experience is that small developments often do not make a lot of money. The reason is that a lot of people can by the land in the price range you are looking at. So consider carefully.

    Nigel Kibel | Property Know How
    http://propertyknowhow.com.au
    Email Me | Phone Me

    We have just launched a new website join our membership today

    Profile photo of WomeninPropMelbWomeninPropMelb
    Member
    @womeninpropmelb
    Join Date: 2008
    Post Count: 234

    Nigel’s comments is sound advice. Do a lot of due diligence. Decide what you are investing for? What strategy you want to go with and mix with like minded people. You will work out the wood from the trees and figure out what is right for you.

    Profile photo of John MaxwellJohn Maxwell
    Participant
    @john-maxwell
    Join Date: 2010
    Post Count: 30

    Maybe you could also put a cheap transportable home on the land?? There are often good deals around on these … but be sure to take into consideration all costs of transport, stumping, setting and connections etc this is of course subject to that council approving your application. The financiers will also request that the house is properly set/ anchored etc

    You’ll definitely get better rent return on a house than a granny flat.

Viewing 8 posts - 1 through 8 (of 8 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.