Hi all you developers out there, just wondering if I can run an idea past you and ask for any hints/tips?
Just spotted an ad in local paper:
2 br/ 2 bathroom property (reno done) $215,000
Near Central in progressive town which is growing (VIC)
Ad says block has subdividable potential (STCA of course!!)
Also has large workshop with own office and power.
My plans would be to rent house on a per room basis
Subdivide block and sell to developer
Also if possible rent out workshop to new small business?
My questions are: are there any legal issues with leasing workshop in a residential area?
I will ring council just wondering if anyone has any suggestions for essential questions I should be asking.
Also could be potential to turn house into a 3br as has extra living area.
What do you guys think?
Also we have just bought our first property and are currently in the process of settling on it so funds are tight right now, would have to lend money from somewhere to cover our deposit and costs, any suggestions?
Thanks,[biggrin]collie
Councils do not like commercial business operations in a residential zoned area. Home offices or home businesses are an exception to this. I don’t think they will approve a commercial lease in a residential zoning. It sets a dangerous precedent.
I think a 3rd bedroom would add more value if the living space that is left is sufficiently large enough for a family of four allowing also for visitors.
Regarding where to get funds, a whole lot MORE information is needed regarding what you have accessible to you (eg: family with property, equity in other property, etc…).
Robert Bou-Hamdan
Mortgage AdviserHi Robert and thanks for your reply.
We have about $14,500 equity in our new property and that is about it!!
Also have family who may be willing to go guarentor with a house worth about $300,000
Anyone else have any comments on the developing side?
Thanks Againcollie
$14,500 sounds unusable unless your house is worth about $100,000. Regarding your family’s property, it is better if they just apply for their own loan and give you the money. It is much harder to use guarantor’s these days. Them getting their own loan also keeps things nice and tidy and very simple.
Robert Bou-Hamdan
Mortgage Adviser
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