Critique my land purchase plan

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Critique my land purchase plan


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Old 12th January 2017, 12:03 AM
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Default Critique my land purchase plan

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Hi All

Me & partner have brought a block of land in Marsden Park. Its a battle axe shape , back of the lot , 492 sqm at a cost of $455,000. The lot is located in the Grange which is opposite to where IKEA is.

It might be a bit late for seeking advice , however , I wanted to know if some one else has invested in that area as well and what the future looks like ?

My personal plan is to build a house on this land , perhaps by end of 2017 and sell it for capital gains. I intend to use these capital gains to buy a place to live close to the city.

More than happy to share more details if it helps you form an opinion.

Gaurav

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Old 12th January 2017, 11:38 AM
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This is not a real estate advice forum ... Most people using this forum are not even in Australia and taking advice from people who recently entered Australia about property investment is not a wise choice...

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Old 12th January 2017, 04:56 PM
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how did you finance for the land? local bank?

I have been looking a few months now to buy a property in australia, seems like sydney and melbourne are way too expensive though, im thinking about some of the other cities.

just to let you know there's a website that has reviews for all builders in australia so you can pick a trusted builder for your house.




Quote:
Originally Posted by srivasu View Post
<SNIP>

Hi All

Me & partner have brought a block of land in Marsden Park. Its a battle axe shape , back of the lot , 492 sqm at a cost of $455,000. The lot is located in the Grange which is opposite to where IKEA is.

It might be a bit late for seeking advice , however , I wanted to know if some one else has invested in that area as well and what the future looks like ?

My personal plan is to build a house on this land , perhaps by end of 2017 and sell it for capital gains. I intend to use these capital gains to buy a place to live close to the city.

More than happy to share more details if it helps you form an opinion.

Gaurav
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Old 12th January 2017, 09:09 PM
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Originally Posted by derek2016 View Post
how did you finance for the land? local bank?

I have been looking a few months now to buy a property in australia, seems like sydney and melbourne are way too expensive though, im thinking about some of the other cities.

just to let you know there's a website that has reviews for all builders in australia so you can pick a trusted builder for your house.
Thanks for having a look derek2016 . I took help of a mortgage broker who helped arrange the loan with one of the big 4 banks . PM me if you need his contact.

It is true - Sydney is quite expensive , however I was quite desperate to own some realestate in my name & worked/saved really hard towards that cause. Hopefully its a worthwhile investment , in the worst case we can live in the house we build there.

I just did a google search based on your suggestion & can see a few sites with reviews , can you PM me the site that you were referring to ? That will be really helpful.

Good luck with your house search , let me know if I can be of any help!

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Old 12th January 2017, 10:10 PM
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Oh, Marsden Park - I know exactly where it is !!

What is the zoning of the land ? Are you going to keep paying the banks so you can just hold the land while you are paying your rent, wherever you live ? How is your loan setup, PI or IO ? What is your short/long term objective with property ?
You realise you have bought at Sydney's peak, right ?
Building, living and then selling once you have some CG, without having to pay for CGT, is atleast a 2 - 3 year process, assuming Sydney keeps going with the current steam. A faster way to realise profit could be to get a DA and convert it to a development site and onsell to a developer ? I dont know - there is so many things you can do. Nevertheless, congratulations on the purchase - many can't even get to this stage.

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Old 12th January 2017, 11:23 PM
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Quote:
Originally Posted by happybuddha View Post
Oh, Marsden Park - I know exactly where it is !!

What is the zoning of the land ? Are you going to keep paying the banks so you can just hold the land while you are paying your rent, wherever you live ? How is your loan setup, PI or IO ? What is your short/long term objective with property ?
You realise you have bought at Sydney's peak, right ?
Building, living and then selling once you have some CG, without having to pay for CGT, is atleast a 2 - 3 year process, assuming Sydney keeps going with the current steam. A faster way to realise profit could be to get a DA and convert it to a development site and onsell to a developer ? I dont know - there is so many things you can do. Nevertheless, congratulations on the purchase - many can't even get to this stage.
Great questions & insight there HappyBuddha , thanks !

Note sure of zoning.

My objective is to build a house by mid 2018 with an intent to sell it for CG. I understand that I need to live in the house for 6 months to receive 50% discount on CGT, I am OK with doing so. So , quietly likely , I would be able to sell by end of 2018. This means I will pay rent till end of 2018 , roughly 50K. I will need to account for that in the CG that I would potentially make.

My loan is PI - as I am keen to pay less interest.

Hmm great idea regarding DA & on sell , I am going to read about it further. It did not occur to me earlier.

What do you think of Marsden Park as an area ? Lots of activity going on there , so many new properties being sold ( according to REA , 23 in Sept , 18 in Oct , 11 in Nov , 8 in Dec 2016 ) . Are you looking to buy as well ?

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Old 13th January 2017, 12:56 AM
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Quote:
Originally Posted by srivasu View Post
Great questions & insight there HappyBuddha , thanks !

Note sure of zoning.

My objective is to build a house by mid 2018 with an intent to sell it for CG. I understand that I need to live in the house for 6 months to receive 50% discount on CGT, I am OK with doing so. So , quietly likely , I would be able to sell by end of 2018. This means I will pay rent till end of 2018 , roughly 50K. I will need to account for that in the CG that I would potentially make.

My loan is PI - as I am keen to pay less interest.

Hmm great idea regarding DA & on sell , I am going to read about it further. It did not occur to me earlier.

What do you think of Marsden Park as an area ? Lots of activity going on there , so many new properties being sold ( according to REA , 23 in Sept , 18 in Oct , 11 in Nov , 8 in Dec 2016 ) . Are you looking to buy as well ?
I have no idea where Marsden Park is, I was being sarcastic. If I'd want someone to critique something, I'd give all details. I wouldn't expect others to google stuff on my behalf.

Why will you pay rent till end of 2018 - that's when you want to sell it. If you live in it for 6 months, you won't be paying rent ?

I am guessing, your mortgage payment just for the land would be around $1700/month. Current rent could be around 1500/month = $3200/month. So a good enough chunk of your earnings/savings are going into holding costs and rent. I don't know how H & L packages work - but your payments would go up once you hire a builder ?

I think you need to do a bit more research. Why don't you want to pay more interest ? In case you end up not selling this property but end up making it an Investment property (renting it out), you can claim tax deduction on the tax on the interest component. If I were you, I would also educate myself on negative gearing. I have no idea if you have claimed FHOG. If you have, may be the rules for staying in the PPoR change ? You need to look at the big picture. I think in modern times, most people who milk property have no intention of paying off good debt. It's opposite to the mentality a lot of Indians grew up with. But that's only if you want to invest in property - for a one off PPoR purchase, you are alright there, I think.

I have no interest in investing in Sydney as it has gone out of control, IMO, and out of my serviceability. I have purchased elsewhere and will keep investing in affordable suburbs as long as am in Aus. When I decide to leave Aus, I don't know what I will do. But that's the plan.

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Old 13th January 2017, 03:19 AM
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Was having trouble PMíng you but do a google search "Product review australia" then search "builders" on the site.

Thanks for your offer on the mortgage broker but hopefully i wont need it, I am planning to take out a loan in another country (still living abroad) to pay for my house purchase. That with my savings combined will cover me.

I am leaning towards a new land & house package (400-600sqm land) budget of around 550,000aus. But if i find a house thats not too old i might have to go that route because of my limited time when i visit in July this year. My plan is to rent it out for the next 3 years before i move to aussie permanently.

can agents be trusted to look after the house while away though, this is my worry?



Quote:
Originally Posted by srivasu View Post
Thanks for having a look derek2016 . I took help of a mortgage broker who helped arrange the loan with one of the big 4 banks . PM me if you need his contact.

It is true - Sydney is quite expensive , however I was quite desperate to own some realestate in my name & worked/saved really hard towards that cause. Hopefully its a worthwhile investment , in the worst case we can live in the house we build there.

I just did a google search based on your suggestion & can see a few sites with reviews , can you PM me the site that you were referring to ? That will be really helpful.

Good luck with your house search , let me know if I can be of any help!

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