Just after advise on what you would do

J

jacko18

Hello my nane is daniel its been a while since I've written only once on here but still been reading all the time .
my situation is I own a property in spearwood wa that was triple x site I paid 490 2 years ago so obviously have a bit of equity in property.
I used a buyers agent for purchase I'm fly in fly out and don't have time I think I have the skills to but still doubt doing it myself anyway .

was talking to buyers agent about purchasing second ip and he told me my site has been change with zoning and I could put 8 units now but he recommended 6 or 7 .
I am a fifo worker on good money that plans on getting out in next couple of years and I want to still keep purchasing and keep my portfolio .

my question is how do you think I should do this I'm thinking maybe buying in perth again not that won't buy wherever it's just that I'm thinking a development size block with house and maybe put granny flat on it and then devolop later stage and that i ghink perth still has growth to come.

and another question when would you devolop what I have but of extra detail if it helps I owe 400 house was a appraised local real estate 580 3 or 4 months ago just after bit of advice from the good old somersoft community.

bloody wish I had more time and confidence to do it myself instead of having to fork out for buyers agents but don't want to get it wrong thanks ps I have bad spelling and grammar
 
I can honestly recommend that you put 3 villas on there and not apartments. With the villa option you can appoint a builder to handle the whole thing for you which would suit your FIFO situation and also lack of experience. Apartments are a whole different ball game and a lot more involved.
 
jacko18 said:
Hello my nane is daniel its been a while since I've written only once on here but still been reading all the time .
my situation is I own a property in spearwood wa that was triple x site I paid 490 2 years ago so obviously have a bit of equity in property.
I used a buyers agent for purchase I'm fly in fly out and don't have time I think I have the skills to but still doubt doing it myself anyway .

was talking to buyers agent about purchasing second ip and he told me my site has been change with zoning and I could put 8 units now but he recommended 6 or 7 .
I am a fifo worker on good money that plans on getting out in next couple of years and I want to still keep purchasing and keep my portfolio .

my question is how do you think I should do this I'm thinking maybe buying in perth again not that won't buy wherever it's just that I'm thinking a development size block with house and maybe put granny flat on it and then devolop later stage and that i ghink perth still has growth to come.

and another question when would you devolop what I have but of extra detail if it helps I owe 400 house was a appraised local real estate 580 3 or 4 months ago just after bit of advice from the good old somersoft community.

bloody wish I had more time and confidence to do it myself instead of having to fork out for buyers agents but don't want to get it wrong thanks ps I have bad spelling and grammar
Click to expand...

Hi Daniel,

I'm with Sanj....My suggestion would be to develop your Spearwood block to a triplex site....what size is the block?

Congrats on the price you paid. We bought in Spearwood this year and are in the process of doing the same thing. I think Sanj is on the money as triplex you can do as a residential build, it is feasible, agents in the area are confident of the demand, and less issues for you I think with Fifo.

In regards to getting out of Fifo soon, maybe looking at your longer term goals and what finance structure you will need will help determine if you develop Spearwood now or buy another property?

Good luck, great position to be in.
 
Jacko,

You have a lot of options with your block - it might actually be big enough for 4 and a feasibility may work out that 4 is better than 3.
I don't think I would go for apartments as my first project unless you do a really simple one - for example 4 apartments which are 3 beds/2baths - 2 upstairs, 2 downstairs. This could be done possibly under residential loan rates and be managed by a FIFO.

As to buying another site, I'm not sure I'd be doing it in Perth unless you target one of the quieter areas such as Mandurah. The rest of Perth is too hot.

You will also need to balance the ability to service a construction loan and pay the holding costs until completion. It might be best to wait for #2 until completion of Spearwood project.

To keep your portfolio going you might want to retain one of the Spearwood units on completion rather than sell all.
 
From a financing Point of view 3 to4 dwelling max should still allow you to use some form of resi finance to do the build.

while commercial finance for 6 or 8 is probably easier to obtain, the regs are a lot tougher and restricitive and would only proceed if u had enough pre sales to clear most of the debt

ta
rolf
 
Thanks for answering with some advice block is 860 yeah was triplex but buyers agent told me that pockets of spearwood had been changed and now could put up to 8 .
I owe 400 on it it wouldn't be a good Idear to buy a devolopeble block use granny flat scheme turn to positive then devolop down track.

I have around 40 savings and equity I wanted to aquire another couple of investments but do like idea of adding value and turning positive .

thinking that could put the extra into spearwood and my good wage get that debt right down and might be good strategy to keep portfolio when finished fifo can't be bothered with fly in out just want to play golf

Thanks for the advise yeah I'm trying to work out strategy on what should be done if it helps ill be on 150 k for next 2 years but don't think can do much after that
 
Also I am living in the spearwood property at moment if you was to devolop the property would you wait until perths finished having growth maybe in a year or something would love some advice also on the granny flat start edgy I Was talking about thanks
 
Also with me wanting to acquire 2 more properties in the next 6 months would I better looking at sydney and Brisbane and would Brisbane be good spot to try find something with developing potential or would maybe the western sydney market and turning it into dual occupancy I now very hot market

I'm more confident now I wanted to buy in melbourne in 2010 got scarred and also had been brought up with you have to have big deposit.

so missed out got the courage in 2011 to buy in spearwood watched the economy in countries crumble got scarred basically and just thought one house do me in life when you guys told me nows the time to buy so I learnt bit from that and now keen to reach my goal of golf and financial freedom ha
 
if you buy another place chances are you wont have enough money to develop spearwood for a while. if i were you id take advantage of the demand for villas at the moment and develop this.

is it possible to retain the house and put 2 behind it?
 
sanj said:
if you buy another place chances are you wont have enough money to develop spearwood for a while. if i were you id take advantage of the demand for villas at the moment and develop this.

is it possible to retain the house and put 2 behind it?
Click to expand...

+1 for this. You'll need to borrow between $600-800k depending on 3 or 4 so that is your first priority for borrowing money.

And yes I think now is a good time to develop Spearwood.

UNLESS you decide to buy a development block in Melbourne (I know nothing about Sydney (except the GF market is probably too hot) and Brisbane. If you develop Melbourne first then develop Spearwood.

If you want to GF in Perth I would look near the Universities or Freo.
 
oh okay with 40 thousand and equity you would need to spend it to get going .

what would you think you would make on the development only thing is there i wouldn't now were to start and I'm only home once a week every 2 weeks next year home once a week every 4 better paying job but now time on hands what do you think

I don't now if I'd have the skill to do development and your strategy would be from there to buy another development block and go again and so on that would be your stratedgy I'm Tasmanian originally and would like to go back one day but I now if I go back I don't want to worry about a Job cause there's nothing down there
 
jacko18 said:
Hello my nane is daniel its been a while since I've written only once on here but still been reading all the time .
my situation is I own a property in spearwood wa that was triple x site I paid 490 2 years ago so obviously have a bit of equity in property.
I used a buyers agent for purchase I'm fly in fly out and don't have time I think I have the skills to but still doubt doing it myself anyway .

was talking to buyers agent about purchasing second ip and he told me my site has been change with zoning and I could put 8 units now but he recommended 6 or 7 .
I am a fifo worker on good money that plans on getting out in next couple of years and I want to still keep purchasing and keep my portfolio .

my question is how do you think I should do this I'm thinking maybe buying in perth again not that won't buy wherever it's just that I'm thinking a development size block with house and maybe put granny flat on it and then devolop later stage and that i ghink perth still has growth to come.

and another question when would you devolop what I have but of extra detail if it helps I owe 400 house was a appraised local real estate 580 3 or 4 months ago just after bit of advice from the good old somersoft community.

bloody wish I had more time and confidence to do it myself instead of having to fork out for buyers agents but don't want to get it wrong thanks ps I have bad spelling and grammar
Click to expand...

I think you may find that your property is now worth over $600,000, they sold R40 recently on 728 sqm block for $600,000 as your block is much bigger should be worth more:) Happy Days

I am currently getting plans and permits together for 3 unit site, I have an R60 742 sqm in Spearwood. Have researched multi developments and various options.

I agree with what most are saying as this is your first I would go play it safe (3 units) 3x2 are in huge demand in this area. If you have reasonable specifications you should achieve sale price of at least $475,000 per unit, have been quoted as much as $540,000 but I think that is definitely on the high side.

Building costs - including site works etc. I am allowing $200,000 per unit turnkey

Is your site west of Rockingham Road?

Cheers MTR
 
Ah Tassie - but is cheaper to buy a nice little place by a gold course :)

Very VERY roughly sums:
quad 3 x 2 x single garage $830k
$490k original house cost
Cost = $330k each
Value = $430k
Profit = $100k (30%)
Total Project profit $400k plus the $100 you have in equity.
No idea how much is left over after CGT and selling fees.
With sums like these you can see how you can build 4, sell 3 and keep one potentially with no debt against it.

http://www.realestate.com.au/property-house-wa-spearwood-112206947
 
MTR said:
I think you may find that your property is now worth over $600,000, they sold R40 recently on 728 sqm block for $600,000 as your block is much bigger should be worth more:) Happy Days

I am currently getting plans and permits together for 3 unit site, I have an R60 742 sqm in Spearwood. Have researched multi developments and various options.

I agree with what most are saying as this is your first I would go play it safe (3 units) 3x2 are in huge demand in this area. If you have reasonable specifications you should achieve sale price of at least $475,000 per unit, have been quoted as much as $540,000 but I think that is definitely on the high side.

Building costs - including site works etc. I am allowing $200,000 per unit turnkey

Is your site west of Rockingham Road?

Cheers MTR
Click to expand...

East side behind Phoenix shopping centre opposite a really nice park
 
westminster said:
Ah Tassie - but is cheaper to buy a nice little place by a gold course :)

Very VERY roughly sums:
quad 3 x 2 x single garage $830k
$490k original house cost
Cost = $330k each
Value = $430k
Profit = $100k (30%)
Total Project profit $400k plus the $100 you have in equity.
No idea how much is left over after CGT and selling fees.
With sums like these you can see how you can build 4, sell 3 and keep one potentially with no debt against it.

http://www.realestate.com.au/property-house-wa-spearwood-112206947
Click to expand...

Yeah on golf course dream home that's added to my goal Westminster and what mtr is saying the house might of gone up quiet bit more then I thought I owe 400 might be worth over the 6 for comparable sales of mtr lovely
 
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