What Price Would You Pay For A Lifestyle Home?
What Does A Lifestyle Property Look Like?
More and more people want to escape the city life and are looking for a location that is going to provide lifestyle. People are cashing in on the high property prices in Australian cities and heading for an alternative way of life.
This is in alignment with my philosophy of ditching the 9-5pm and looking for alternative ways of providing an income. Once you have replaced a household income you can look to live anywhere in the world. And starting a business that can be operated from anywhere in the world is key to achieving this goal.
I am here in the beautiful Northern Tasmania. I’m here for a vacation… taking a week out as I do love to travel. Whilst I am here I thought I would check out the Tasmanian real estate as well.
I’m staying in a place with stunning views overlooking the water and mountains. The place is beautiful. And perfect for getting back in touch with nature and a wonderful place to travel to and stay and relax.
So yesterday, I checked out a house for sale that overlooks this beautiful water way and mountains. The most amazing part of the house was the incredible water views.
The house itself was very basic. It was a 3 bedroom, 2 bathroom house built in 1998. The structure was in good condition, however the design was very old fashioned and did not cater for todays entertaining lifestyle.
You would need to invest at least $100K to $150K to bring it up to a modern contemporary look and feel. This investment would give you an incredible property with incredible views. You would have sweeping views of the water and sweeping views of the Australian bush. Plus the boat ramp is just down the road.
It’s a 2,000 square meter block, so plenty of land to develop and put another structure on it if you wanted.
There are also disadvantages to this house. There is an enormous water tank on the block and a septic tank. So there is no town water or sewerage. Some people find this an advantage, as the rates are much lower.
However, the advantages of this house is the price – $395K. For this incredible lifestyle home. And even better – you could offer about $320K as your 1st and if that was accepted, you could put about $100k to $150k into a renovation to bring your new lifestyle home a new modern and contemporary look and feel.
You would not get a house for $395K with these views on the Australian mainland, especially up and down the coast of NSW. You would be paying well over $1 Million and that is without adding any value or doing any renovations. So very big difference over half the price of what you would pay on the mainland.
Getting back to where I invest… I wouldn’t be buying an investment property here. The rent that this house would get is $300 per week… $1,200 per month. I’d buy a lifestyle property here but not an investment property.
My real estate strategy is investing in property in America where you are paying $40,000 for a property with the same features as this lifestyle home here. So $40,000 and putting tenants in that will pay USD$650 per month in rent.
What would you do? I’d love to know your thoughts. So leave a comment below.