So it's been a few months since posting and a lot has happened..
June 2013 bought an 810 block in Herston (DCP) for 705k (+32k costs) and had smaller plans for it that grew because we fought the demo rejection and after 10 months and 30k, we got demo.
We pushed the boat out and went for whatever we could get, applied for 13 2 beds, so huge GFA really but lots of restrictions on design (had to be in keeping with the area etc) bulk and scale and everything else. Lots of changes to everything. We are due to get Dev. App. Pretty soon though yet another change has come through and another 5k to the architect and so on.
Getting very weary of it all at this point due to lots of things going on in the background. Surgery, sister in law in a hospice, hubby struggling with this obviously and seeing the light so not wanting to continue with his work contract overseas and giving it up with nothing else planned. All ok because I agree with this and ultimately want him home more anyway, but this choice completely affects our ability to finance this unit block build by adding a lot more stress and things we didn't plan for. Like selling off units to reduce debt straight away, so needing body corp. etc
We have been getting more impatient waitin on this to end, went out one day and put offers on 2 places in st.lucia. (It was a few weeks ago, was told we may not get DA and got sick of the inactivity while the market keeps moving)
One is a 3 bed townhouse with large garage about 400 metres from uq entrance. For 527k renting at 545. 80's style dbl brick, exposed brick walls internally, old bathroom etc 2 bedrooms are a great size though, 1 v small! Need to render, redo bathroom and put hard flooring in living area. Tenanted until nov.
The other is an 80's house on a 405 block for 810k 2.5km from uq, needs 40k structural work due to hill at back having loose shale and drainage issues. Got engineer report, renegotiated on cost etc. It is 3 bed but easily convert rumpus to 4th. Was a family home so vacant possession.
Both bought in trust, mortgage in trust name etc
We have now changed all our finance and based on current stuff are setting up an offset Interest only for 2.2m as a just in case. Hubby can stay on or leave but if he leaves, this is in place already.
Decision time. Should he leave, and I really think he will after his sister passes away. We may end up moving back to ireland. We have 2 girls in uni so a tentative plan would be to put one in each property in st Lucia as they do not want to leave oz. the two younger ones would come with us and we would rent out our family home also in Brissy as a just in case we come back and while the market is still showing growth.
Based on the unknown, I am thinking it might be better to sell herston to a developer. During refinancing, herston got a bank val of 800k after an independant valuer went to it. 2 agents valued it at 1.35approx only if it gets dev. App.with the plans and unit yield lodged. We now think we will get this.
My figures on it are
Costs so far 767k purchase and demo. Plus holding rates water architects town planner application fees etc etc
Cost to build based on current plans so v tentative! 3.3m (2.9m demo slab retention walls and 9 2 beds plus 2 1 beds)
400k infratstructure fees, architect, certifier, engineers, hydraulic,qfrs,qld ace,op works and so on and so on!!!)
So total 4.06m all up for us
End cal I have been to,d 500k on 2 bed and 425 on. 1bed.
I feel this is too high looking at other sales and reckon more 480k and 375k
So 5.07
Profit 1.1m or 27%
We have to include a builder margin, a builder wouldn't.
we started out very excited about all of this but it is so drawn out and too many distractions now and we are not experienced enough to see it through from overseas relying on a project manager and so on, too many things could go wrong.
If we sell, is the agent steering me in the right direction on 1.35?
We were offered 1.2 with demo only by the agent who sold it to us but that was early 2014 when we got the demo and he said getting dev app would not add anymore value, but other agents said it would and time has moved on and there is not much available to develop these days this close to city, uni, hospital etc.
The other option is to sell the family home, move to the house on the 405 block and use those funds to add to the loan and finance ourselves. It isn't commercial rate, we can draw down without the bank hassle and so on. And we can finance the draw down for about 8mths maybe a little more. It was our pension plan but not sure we wouldn't be better sticking to small time stuff and buying a few houses instead.
Are we mad to let it go???
Sorry for such a long, long post :(
June 2013 bought an 810 block in Herston (DCP) for 705k (+32k costs) and had smaller plans for it that grew because we fought the demo rejection and after 10 months and 30k, we got demo.
We pushed the boat out and went for whatever we could get, applied for 13 2 beds, so huge GFA really but lots of restrictions on design (had to be in keeping with the area etc) bulk and scale and everything else. Lots of changes to everything. We are due to get Dev. App. Pretty soon though yet another change has come through and another 5k to the architect and so on.
Getting very weary of it all at this point due to lots of things going on in the background. Surgery, sister in law in a hospice, hubby struggling with this obviously and seeing the light so not wanting to continue with his work contract overseas and giving it up with nothing else planned. All ok because I agree with this and ultimately want him home more anyway, but this choice completely affects our ability to finance this unit block build by adding a lot more stress and things we didn't plan for. Like selling off units to reduce debt straight away, so needing body corp. etc
We have been getting more impatient waitin on this to end, went out one day and put offers on 2 places in st.lucia. (It was a few weeks ago, was told we may not get DA and got sick of the inactivity while the market keeps moving)
One is a 3 bed townhouse with large garage about 400 metres from uq entrance. For 527k renting at 545. 80's style dbl brick, exposed brick walls internally, old bathroom etc 2 bedrooms are a great size though, 1 v small! Need to render, redo bathroom and put hard flooring in living area. Tenanted until nov.
The other is an 80's house on a 405 block for 810k 2.5km from uq, needs 40k structural work due to hill at back having loose shale and drainage issues. Got engineer report, renegotiated on cost etc. It is 3 bed but easily convert rumpus to 4th. Was a family home so vacant possession.
Both bought in trust, mortgage in trust name etc
We have now changed all our finance and based on current stuff are setting up an offset Interest only for 2.2m as a just in case. Hubby can stay on or leave but if he leaves, this is in place already.
Decision time. Should he leave, and I really think he will after his sister passes away. We may end up moving back to ireland. We have 2 girls in uni so a tentative plan would be to put one in each property in st Lucia as they do not want to leave oz. the two younger ones would come with us and we would rent out our family home also in Brissy as a just in case we come back and while the market is still showing growth.
Based on the unknown, I am thinking it might be better to sell herston to a developer. During refinancing, herston got a bank val of 800k after an independant valuer went to it. 2 agents valued it at 1.35approx only if it gets dev. App.with the plans and unit yield lodged. We now think we will get this.
My figures on it are
Costs so far 767k purchase and demo. Plus holding rates water architects town planner application fees etc etc
Cost to build based on current plans so v tentative! 3.3m (2.9m demo slab retention walls and 9 2 beds plus 2 1 beds)
400k infratstructure fees, architect, certifier, engineers, hydraulic,qfrs,qld ace,op works and so on and so on!!!)
So total 4.06m all up for us
End cal I have been to,d 500k on 2 bed and 425 on. 1bed.
I feel this is too high looking at other sales and reckon more 480k and 375k
So 5.07
Profit 1.1m or 27%
We have to include a builder margin, a builder wouldn't.
we started out very excited about all of this but it is so drawn out and too many distractions now and we are not experienced enough to see it through from overseas relying on a project manager and so on, too many things could go wrong.
If we sell, is the agent steering me in the right direction on 1.35?
We were offered 1.2 with demo only by the agent who sold it to us but that was early 2014 when we got the demo and he said getting dev app would not add anymore value, but other agents said it would and time has moved on and there is not much available to develop these days this close to city, uni, hospital etc.
The other option is to sell the family home, move to the house on the 405 block and use those funds to add to the loan and finance ourselves. It isn't commercial rate, we can draw down without the bank hassle and so on. And we can finance the draw down for about 8mths maybe a little more. It was our pension plan but not sure we wouldn't be better sticking to small time stuff and buying a few houses instead.
Are we mad to let it go???
Sorry for such a long, long post :(
Update and knee jerk decisions
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