Hi guys
This is my first time on a property investment forum so please bear with me.
My situation
I have just bought a property with a 3 bedroom house in melbourne in a place called laverton.I purchased the property for 325k and it came with plans for a 2 bedroom unit on the back of the property which has council planning approval.
The house is currently being rented out at the moment but i will be movin in(hopefully for no longer then 6 months) as i have applied for the first home owners grant.
what i was thinking of doing after my 6 months was maybe buiding the unit in the rear and then subdividing.then either renting both propertys or selling one and sitting on the other.
This is my first property investment and im pretty sure there are loads of experienced investors here so i just need to know if i am on the right track…No sure how CGT would effect my plan either or even if it is a good plan.
any advice would be much appreciated.
Hi Louis,
Whats the resale value of both properties once the unit in the back goes up and the subdivision is complete?
Regards
Shahin
TheFinanceShop | Elite Property Finance
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Hi shahin
Thanks for your reply.
To be honest with you I'm not really sure.but I have bein looking on real estate.com.au and for something similar to the back unit is going for around 220k and the front house would probably be around 260k I'm guessing as it wouldn't have the back yard anymore.
Do you think I need to get the front house properly valued without the back section and also get the unit valued of the plan?
Hi louis,
I actually know the house you purchased as I purchased the house across the road to you a few months ago with the intention of doing the same thing.
The problem with Laverton is It’s still 5 years away. I reckon you would be better off holding off any building plans for now. Also the high vacancy rates in Laverton is a problem.
is the current council approval for a granny/duplex only? or does it allow for the subdivision of 2 separate title…
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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Ok so what would be the rental on both houses? The numbers dont look too bad. It will really come down to building costs but a single 3-4 bedder dwelling should cost around $150k turnkey. Don't forget the depreciation benefits on the back property when crunching the numbers.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Hi Guys thanks for the input.
Joe I was thinking About just holding off for a while until i have moved in for the 6 months then out and have got a reliable tenant then look at sorting out the back section.but yeah the rentals properties exceed the demand at the moment in lalaverton
also the plans for the back section does allow for the subdivision.if I do subdivide then sell the back will I be liable for CGT?instinct tells me yes unless there is a way around it..
Sounds interesting
let us know your final decision
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