Author: Michael Daniels
As Central Coast Mortgage Brokers, we have the privilege of witnessing our clients use impressive wealth-creation tactics. One tactic we regularly see is converting 3-bedroom houses into 4-bedroom houses. Today, we are going to analyse this option in Killarney Vale.
Over the last 12 months, 4-Bedroom house prices grew by 7.30% to $1,030,000. 3-Bedroom house prices grew by 3.9% to $885,000. Although these median prices are high, Killarney Vale is a relatively affordable area given its proximity to the beach and its broader location in the middle section of the Central Coast.
Killarney Vale's 3-bedroom house prices, in particular, offer potential for growth if owners can add a bedroom at a relatively low cost. With a $145,000 gap between 3-bedroom and 4-bedroom houses, adding a bedroom with something like an internal wall would be an instant gain.
The new First Home Buyer 5% Government Guarantee Scheme will add to Killarney Vale demand, as it was always a favourite for this buyer group. I have broken down a qualifying home scheme purchase at $885,000 below:
$885,000 Purchase Price (Killarney Vale Median 3-bedroom house price)
+ $ 17,102 NSW Government duty and fees (a saving of $17,487 for first home buyers)
+ $ 0 Lender's Mortgage Insurance premium (waived under the 1st home buyer scheme
+ $ 1,898 Approximate legal costs
= $904,000 Total purchase cost
- $ 63,250 Cash contribution required from the buyer
= $840,750 Proposed loan amount
