60/40 based on final value. So find out what net yield valuers are using for that sort of property and go from there.
ok so just so I have this in the right order so not to spend money unnecessarily...
Would this be the right order:
1.Draftsmen meeting to go overs ideas? He can then go to council to see what can be done on the site?
2. Take drawings into council to get consent?
3.Registered valuation (letting them know future planning intentions)
4. Go to bank with all the above
5. Select a builder or building company
6. start the build and then pray...
Or go to council first and let them know what Im thinking and the draftsmen, valuation, banks etc etc
Builder earlier, before you chat with council or valuer. Make sure your charted course to prosperity doesn't cost too much! Builder and architect can work through compromises with you. Big thing is engineering or services costs.
So I meet with a local agent today..
They say I would be crazy to sell unless i needed the money, if I did want to quit they could sell it to someone interested in future development very quickly and it would be a multi offer for sure!
Ive know this agent for years and they have sold other property for us...
They say I should consider building two flats down stairs with resource consent and potentially updating the 3 bed, one bathroom flat upstairs.
They tell me this would be a 3 separate unit home on Queenstown hill that would bring in about 1600pw to long term tanants
The other option is to short term let the entire 3 units which would be much more lucrative but the upstairs flat would need to be refurbished to a very high standard.. Each downstairs flat would be let at $350 per night and the upstairs flat would be let at $450. These rates would increase over peak dates but Im sure I would get 90 room nights per flat per year.
They say which ever way I go long term vs short term I should hold for 10 years, be a fair landlord but just take in as much money as possible in rents etc etc.
Meeting the builder in the next two days for pricing..
Agree, you should hold...easier to do long term tenants if you want a more set and forget situation. Yes more money doing short-term but you will have to be a tad more active - although living in Queenstown will make it not too much of a challenge.