How I would invest 1 million

I was asked this question through the week - here is my response...

The hottest part of the market right now is owner occupiers upgrading to contemporary over character. A 607m block that allows a knock over rebuild. Even if you are not planning on being the end developer it’s a great capital growth option.

We bought this one for ourselves last October. We paid 820 k – it rented for 465 per week.

The street record then was 1675 000 – then before Christmas it went to 1750 000 and this year its 1895 000. We will bring it in at 1500 000 all up and hope for a 2 million sale. It would rent for 1300 per week.

We cant take credit for how bullish the market is and the timing was good but the same property pictured could sell for 1million (with nothing done) . That’s the depth and hunger for these knock down rebuild sites that allow the construction of houses that have the living down stairs, nice pool and yard.

If you were wanting to see it through – you need 20% for the hard costs i.e. land and construction. The soft costs (consultants)cant be borrowed for so needs to come from cash. 50 – 80 k depending .