Hi guys, long time reader first time poster..
I'm 27 and looking to buy my 2nd investment property; a leasehold property in a good area in Napier. Normally a house like this would sell freehold for $365,000ish (because the one next door to it is exactly the same, stucco, 800m2 section) and sold mid last year for that. For this one they are asking $255,000 with a C.V of $295,000 but leasehold.. I think this scares a lot of people off since the lease is up for renewal in september 08 with the potential of the lease skyrocketing up. Am interested to hear any feedback of people who have sub divided leasehold and am interested in particular how to sell/value the section to be sold at the rear if there are no improvements on it??
I was going to live in the house as it is nicely done up inside whilst i did the associated preparation for sub dividing (constructing a new garage at the front and moving the para pool, the fencing.) and then rent it out. Would it be more wise to go in with a second investor to build a new home on the back and rent them both out? Or just sell the back with the new house on it? How do the council determine the lease costs when it is subdivided?
Thanks
I'm 27 and looking to buy my 2nd investment property; a leasehold property in a good area in Napier. Normally a house like this would sell freehold for $365,000ish (because the one next door to it is exactly the same, stucco, 800m2 section) and sold mid last year for that. For this one they are asking $255,000 with a C.V of $295,000 but leasehold.. I think this scares a lot of people off since the lease is up for renewal in september 08 with the potential of the lease skyrocketing up. Am interested to hear any feedback of people who have sub divided leasehold and am interested in particular how to sell/value the section to be sold at the rear if there are no improvements on it??
I was going to live in the house as it is nicely done up inside whilst i did the associated preparation for sub dividing (constructing a new garage at the front and moving the para pool, the fencing.) and then rent it out. Would it be more wise to go in with a second investor to build a new home on the back and rent them both out? Or just sell the back with the new house on it? How do the council determine the lease costs when it is subdivided?
Thanks
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