New to the forum and IP arena and seeking advice/help from experienced investors here.
Recently bought an old house on a 700sqm land - close to station - in Blacktown LGA - cost $700k.
Zoning - 2(a) - RESIDENTIAL 'A' CLAUSE 48 - which allows for dual occupancy.
I knew subdivision of the land was not possible.
And the idea was to knock down and build a duplex with a view to rent out in the short term and sell one or both at a later stage.
Much to my surprise (and shock!!!) came to know that one cannot sell the duplex individually.
Rookie mistake? or have others gone through similar realizations?
I know few people have lamented about the ways of Blacktown council on allowing to build duplex but not to sell individually !!!
Currently rented to a relative for $450/pw and heavily -ve geared at the moment.
So, the dilemma is whether to put a granny flat - I hear the cost around $120k?
Conservative estimate of rent for GF - $300-350/pw - which should make the property pretty much neutral or even a little +ve.
Or still go ahead with buildng the 3 or 4 b/r duplex - cost around 550-600k?
Rent for both duplex - 1100-1200/pw.
Could still be -ve geared but better than current position.
Or just leave it as it is.
I can sustain the -ve outgoing for the time being but not for long (1-2 yrs max).
And wait to see if the council comes around to allow strata subdivision and build the duplex then - which would be more attractive financially.
So, to make the best use of the land - for now and future, what would you guys do?
Recently bought an old house on a 700sqm land - close to station - in Blacktown LGA - cost $700k.
Zoning - 2(a) - RESIDENTIAL 'A' CLAUSE 48 - which allows for dual occupancy.
I knew subdivision of the land was not possible.
And the idea was to knock down and build a duplex with a view to rent out in the short term and sell one or both at a later stage.
Much to my surprise (and shock!!!) came to know that one cannot sell the duplex individually.
Rookie mistake? or have others gone through similar realizations?
I know few people have lamented about the ways of Blacktown council on allowing to build duplex but not to sell individually !!!
Currently rented to a relative for $450/pw and heavily -ve geared at the moment.
So, the dilemma is whether to put a granny flat - I hear the cost around $120k?
Conservative estimate of rent for GF - $300-350/pw - which should make the property pretty much neutral or even a little +ve.
Or still go ahead with buildng the 3 or 4 b/r duplex - cost around 550-600k?
Rent for both duplex - 1100-1200/pw.
Could still be -ve geared but better than current position.
Or just leave it as it is.
I can sustain the -ve outgoing for the time being but not for long (1-2 yrs max).
And wait to see if the council comes around to allow strata subdivision and build the duplex then - which would be more attractive financially.
So, to make the best use of the land - for now and future, what would you guys do?
Build granny flat or duplex?
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