Property Upleveling Discussion

Since coming back from Florida something shifted in my consciousness regarding the next step in our home.

What feels right:

• 3500 sq ft executive level home in Vista
• $900,000 price range

2359 Elevardo  $899,000 3331sq ft, 4 bed, 4 bath, 3 acres

Amazing site looking down into Cal la Vie. 5 minute windy drive up from Warmlands Ave. House is immaculate but bathrooms, kitchen and flooring are very dated. Spectacular entry. Potential for infinity pool overlooking Cal-la-Vie could be simply stunning. Would need $50,000 in updates plus pool. Landscaping is uninspiring and lots of potential for upgrades.
House platform is about 1 acre and rest of property is steep natural chaparral.

2409 Anderson Lane, Vista, 3478 sq ft, 4bed, 4.5 bath, landscaped back yard,

Single level executive home on flat terraced site. Extensive back yard with pegola and multiple sitting areas. Huge living and separate open plan dining and family. House orientation is poor for the site and entry . All bathrooms have own bath, but bathroom wing was a rabbit warren.


Options
1. Build your dream home
2. Use Warmlands Ave equity to sell and rebuy a larger home that needs upgrades
3. Use $100 - $150k of Eden2 proceeds to raise how much we can buy to approx. $900,000

Property Upleveling Scenarios

Option 1: Building Dream Home

• Building my own home could be a practice run for my design ideas for Mallorca Modern.
• How much would it cost to build a 4,000 ft home in Vista?
  $250,000 for the lot
  $600,000 to build
  $100,000 for pool and landscaping

Option 2: Sell and Buy

• Primary goal is to sell and buy a house that is larger so has more potential for capital appreciation
• Capital appreciation on Warmlands Ave at 7% = $4350 per month
• Capital appreciation on $900K home at 7% = $5240
  

Option 3: Use proceeds from Eden 2 

• $350,000 equity from Warmlands Ave
• $150,000 from Eden 2
• $400,000 mortgage

 

Property Upleveling Scenarios

Scenario 1 - Accelerated Home Equity Growth

Step 1: Upgrade Warmlands Ave
- New Master Bath
- New floor downstairs throughout
- Refinish kitchen cabinets
- New Exterior paint
- Replacement windows

Step 2: Sell Eden2
Sale price $625,000 NZD
Proceeds after expenses $275,000 USD


Step 3: Sell Warmlands Ave
- Sell for $850,000
 
Step 4: Purchase next level local property (example 2359 Elevado)
$900,000 purchase price
$350,000 cash from Warmlands Sale
$155,000 from Eden 2
$400,000 mortgage
Keep mortgage payments similar to now
$475,000 equity

Appreciation on a $900,000 home is approx $63,000 per year
Use remaining funds to upgrade new home to maximise appreciation
Million dollar home in 2 years rather than 5 years for Warmlands Ave
Mortgage tax deduction approx $7,000
Business use of the home approx $1500

$225,000 remaining in bank for investment or stock trading

Scenario 2 - Investment Only

Step 1: Sell Eden 2
Proceeds $250,000

Step 2: Buy Florida Resort Home at Encore
Close to Disney, golf, water park

$600,000 budget fully furnished 
$150,000 deposit
$450,000 mortgage

 
$500 per night rental
$3,500 per week
$180,000 per year
Occupancy 50% (seasonal)
$90,000 income per year
$5,000 per month free cash flow
Savings, mortgage paydown, reinvest, renovate Warmlands

Buy Arroyo Vista Condo in Murrieta
Commuter friendly affordable rental

$360,000 budget fully furnished 
$90,000 deposit
$270,000 mortgage
$2000 a month rental with fixed lease
$24,000 per year
Occupancy 95%

Scenario Three - Uplevel using Investment Cashflow

Step 1: Sell Eden 2
Proceeds $250,000

Step 2: Buy Florida Resort Home at Encore
Close to Disney, golf, water park

$600,000 budget fully furnished 
$150,000 deposit
$450,000 mortgage

 
$500 per night rental
$3,500 per week
$180,000 per year
Occupancy 50% (seasonal)
$90,000 income per year

Step 3: Renovate Warmlands to maximize sale price 
Direct investment cashflow into renovations

Step 4: Purchase next level local property (example 2359 Elevado)
$900,000 purchase price
$350,000 cash from Warmlands Sale
$50,000 remainder of cash from Eden 2 sale after Warmlands renovations
$450,000 mortgage
$450,000 equityUse cashflow from resort rental for higher mortgage payments
Use cashflow from resort rental for renovations and updates to increase value

Timeframe = 5 years

Scenario Four - Mallorca Modern Development

Step 1: Sell Eden 2
Proceeds $250,000

Step 2: Buy Florida Resort Home at Encore
Close to Disney, golf, water park

$600,000 budget fully furnished 
$150,000 deposit
$450,000 mortgage

 
$500 per night rental
$3,500 per week
$180,000 per year
Occupancy 50% (seasonal)
$90,000 income per year

Step 5:Build Mallorca Modern Home in Vista or Bonsall