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Viewing 20 posts - 21 through 40 (of 46 total)
  • Profile photo of Agent007Agent007
    Participant
    @agent007
    Join Date: 2003
    Post Count: 61

    In SA you still have to lodge subdivision plans for provisional planning consent for land division. But you may do the land division later if you plan to keep both properties.

    However, if you plan to sell at least one you want to get the subdivision underway immediately. As it can take our beloved Land Titles Office about 4-6 months to issue the new titles. And you need the new titles in order to sell.

    That is usually done will the building contracts are going through their pre-construction (now 4-6 months) & construction pahases (also 4-6 months for single storey).

    Even if you plan to construct 2 or 3 on the one title for now (long term build & lease strategy), councils require you to lodge for land use or land division approval, & meet the requirements mentiond in my post above. As they always assume that ONE DAY you may want to do the subdivision.

    Interestingly, I always wonder with that strategy, what would happen if council’s planning requirements change over that time???

    That would be a question for your surveyor or conveyancor.

    Oh, I did forget to mention B4 that between steps 1. & 2. you should appoint a surveyor to quote & prepare for land division. You could also use a conveyancor, but I would just use the surveyor to do the whole lot to save any double charges.

    The surveyor would do the Community Title or Torrens Title subdivision for you once you receive formal provisional planning consent from council.

    Also…..Council requirements for setbacks & block size may differ depending whether you go for Community Title (typically for unit developments), or Torrens Title (typically for indiviual villas or houses – no body corporates).

    Cheers,

    David Paxton
    “You Only Live Twice”

    Profile photo of Agent007Agent007
    Participant
    @agent007
    Join Date: 2003
    Post Count: 61

    Paul,

    I am a new homes consultant with a major project builder in Adelaide. When I was recently in head office I dealt with 100’s of developers/ amateurs. And most got it wrong & cost themselves $1,000’s of $ more – so they end up trying to screw the builder for the $ the waste elsewhere.

    At the risk of sounding dogmatic, follow these steps & advice & you can’t go wrong! Diverge & it will cost you money & worst of all time…

    This works in SA & should work the same anywhere.

    Here’s what you do in CORRECT ORDER:

    1. Speak to a Planning Officer at council FIRST!!!!!!!!!!!! Ask that the person you are speaking too IS a planning officer, if not, ask for one.

    Ask them for the following info:

    a)Min. block size for detached & semi-detached dwellings – this will determine whether you can subdivide in your area in the first place;

    b) Setbacks to front, side, secondary street frontage (if on corner block) & rear (setbacks are from external wall to boundary);

    c)If 2 storey ask if upper level setbaks are different – but avoid 2 storeys if possible, to hard & local residents may object;

    d)Private Open Space requirements (space they want in the backyard)- it may be % of allotment size or Xm2 per bedroom (& yes, a study usually counts as a bedroom – planners are not stupid), also ask for the min. dimension for POS (usually 2.5m, so you can’t use the 900mmm walkway down the side) & they usually want a Xm x Xm rectangle to fit in teh POS area which is directly accessible from a living area;

    e)Ask for any other requirements.

    Don’t let them just send you out their requirements. If you ask these specific questions they will think you are a pro & will be happy to help.

    2. NEVER ARGUE WITH A PLANNER!!! Accept what they tell you & make your plans comply to their requirements. After all you are simply building an investment home, not your PPOR. So don’t reinvent the wheel otherwise your planning approval could take years, instead of 4 to 8 weeks. GET THE MESSAGE!!!!!!

    3. Choose a volume project builder based on quality & price. Tell them Council requirements – the consultant will love you for this beacause you have proven that you are doing your homework (Here’s a secret – most building consultants HATE dealing with investors – they are very LAZY, they LIE & they PENNY PINCH – not worth getting grey hair over).

    The builder can draw you ACCURATE plans (usually for a small fee – excpect to spend $500 to $1,500) based on your requirements. Ask for an estimate of cost before comitting them to draw plans.

    NEVER EVER expect a builder to do plans or any detailed work for free. Pay peanuts & you get monkeys.

    Your plans should be totally complying to Council reqs. If not, make sure you only have ONE strike against you, More than one & they may be rejected or subject to alteration.

    4. Submit plans to Council for subdivision approval.

    5. If Council appear to approve, sign building contracts right away. Otherwise wait for formal approval before signing in case things change.

    THAT”S IT!!!

    Also some other important guidelines:

    * NEVER EVER use a building design company or architect – they will rip you off. Plus they only draw plans for council approval – NOT BUILDING. I have so many owner designs sent in with BAD MISTAKES on them.

    They will typically charge you $2,000 for simple plans right up to or over $10,000 including full engineers consrtuction reports & council approvals (planning & building). yet your project builder will only chrge you the deposit when signing which is typically $1,200 or $1,500 to do the same work (& accurately too).

    * If you do want to have a set of plans to shop around for price, then just get a draftsman to do them (preferably one that has worked in a project building company before). You don’t need an expensive architect or building designer. Plus avoid them talking you into doing the full preconstruction stuff I mentioned above. That’s how they make more money off you.

    * NEVER EVER BUILD YOURSELF – Why? Banks don’t like you, trades don’t like you, & councils don’t like you.

    My best friend is a builder who does terracotta roof tiles. He used to build his own IP’s. Now he comes to me to do them. Us project builder’s can do them MUCH CHEAPER, FASTER & with with LESS HEADACHES than a small builder can;

    * DON’T use a small builder for IP’s – they are too expensive, & may not be able to adequately insure the whole project.

    Well here end’s my lesson for the day (exit my soapboax).

    Amen!

    No go forth & multiply your wealth [:D][}:)][:D]

    Good Luck!!!

    David Paxton
    “You Only Live Twice”

    Profile photo of Agent007Agent007
    Participant
    @agent007
    Join Date: 2003
    Post Count: 61

    Hey Bill,

    Once bitten twice shy with AMP… [:D]

    I’m doing my bookwork today to finalise mi 2002/03 figures & do last quarters BAS statement. Then off to the accountant for my tax return. And get advice for legal/tax structures for investing & business trading (I already trade within my company)

    Plus the painter is booked in to paint the outside of our house in 2 weeks. So I can get the best LOC on my house for investing.

    Cheers,

    David Paxton
    “You Only Live Twice”

    Profile photo of Agent007Agent007
    Participant
    @agent007
    Join Date: 2003
    Post Count: 61

    Shame the Ez-Rent program will not run on Win95 (both my desktop & laptop both are on Win95).

    Guess it’s time to upgrade my hardware….

    BTW does any of those programs also do IRR (internal Rate of Return) over a time line of years?

    Dolf De Roos wisely recommends this as a final analysis on the numbers of a deal. It’s basic financial analysis I did back at uni all those years ago….

    David Paxton
    “You Only Live Twice”

    Profile photo of Agent007Agent007
    Participant
    @agent007
    Join Date: 2003
    Post Count: 61

    Mike,

    According to SAHT, ‘b’ looks after selling their south,east & western suburb properties. Looks like they mainly have SAHT land at the moment. But I’m sure they sell their houses too.

    Spider,

    Yes… Would need a bit of dough to get them up to scratch.

    Interesting that some investors are cashing these +ve cashflow properties already. Maybe they need Quick Cash. Otherwise they would be ideal to hold on to for the cashflow. As John Burley rightly states, it’s not the cash that makes you rich but the cashflow….

    David Paxton
    “You Only Live Twice”

    Profile photo of Agent007Agent007
    Participant
    @agent007
    Join Date: 2003
    Post Count: 61

    Mike,

    I will have to shoot myself now [xx(]

    Thank God I have a licence to kill…

    I did a search in the Yellow Pages & every QS in SA (bar one in Mt Gambier) is in Adelaide.

    But you could try contacting the Australian Institute Of Quantity Surveyors on 8410 4044.

    Good luck,

    David Paxton
    “You Only Live Twice”

    Profile photo of Agent007Agent007
    Participant
    @agent007
    Join Date: 2003
    Post Count: 61

    Mike,

    Did you buy any of those Housing Trust houses in Whyalla at last weeks auction?

    Are your IP’s +vely geared on the West Coast?

    Cheers,

    David Paxton
    “You Only Live Twice”

    Profile photo of Agent007Agent007
    Participant
    @agent007
    Join Date: 2003
    Post Count: 61

    Anch,

    I sell new homes for a builder. I see people defy logic everyday. Particularly developers/ investors.

    Many people pinny pinch but waste $1,000’s doing things the wrong way.

    Why? I believe becaiuse emotion/ feelings get in the way of logic.

    It’s that simple. Accept that & you can be rich!!!

    If we were logical like computers we would not really need to read books by John Burley, Dolf De Roos, Robert Kyosaki, or even Steve McKnight.

    We have to balance our logic & emotions in order to get rich.

    That’s why people rent instead of buying in most cases. Otherwise the are happy to rent the house for some reason, but would not buy it because it really isn’t their preferred typ of residence.

    Cheers,

    David Paxton
    “You Only Live Twice”

    Profile photo of Agent007Agent007
    Participant
    @agent007
    Join Date: 2003
    Post Count: 61

    Westan, Oh boy, now I’ll have to shoot you too…[;)]

    ‘e’ is very good, apparently no reserve price.

    However, tonight ‘jt’ has a reserve (not sure that this was the instigation of the RE company or the govt. branch involved.

    Also ‘b’ has a few coming up too….

    Ready to play Cleudo…[:D]

    David Paxton
    “You Only Live Twice”

    Profile photo of Agent007Agent007
    Participant
    @agent007
    Join Date: 2003
    Post Count: 61

    Has anyone done a reno by hiring trades for most of the work?

    I did a reno 10 years ago but I don’t have the time & inclination (esp with a wife & 2 young kids) to do it again.

    Even though the margin is less, did it work out profitable over the time frame? And what was done & how long did it take?

    I realise these days that trades my take several weeks to start after quoting.

    However, Dolf De Roos mentions a neat trick in his book, “Real Estate Riches” to get the trades motivated to start quickly.

    He says not to give them the usual BS that you may use them on other projects in the future. They’ve heard those lies before.

    He simply tells them that he will pay them the same day they give him the invoice. It works like a charm for him.

    I tried it when getting 3 painting quotes recently. The first one I didn’t mention it, and it took over a week just to get the quote.

    The next two I told them I’d pay them right away. The 3rd guy gulped & did a double take when I said that. Their quotes were in the post in a few days.

    I’m sure the trades appreciate quick payment & will be loyal to you.

    A builder on the Gold Coast who built our house their in ’95 had the same attitude with his subbies. His name is Mark Robinson (if you are building up there it is worthwhile to check him out). Nice guy too.

    He also built the house next door after we moved in. Most of the trades told us that they would drop any other job to work for him because he would pay them on time.

    He expected a good job (he did fire a painter who worked on our house because he tried to get away with one coat which Mark had to get fixed himself).

    So money talks!!!

    Cheers,

    David Paxton
    “You Only Live Twice”

    Profile photo of Agent007Agent007
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    @agent007
    Join Date: 2003
    Post Count: 61

    Arty, you’re not even close.

    And Leigh, I’m going to have to shoot you now… [;)]

    It’s nice living in a place that once hosted the world’s best Grand Prix.

    …say no more…[:D]

    David Paxton
    “You Only Live Twice”

    Profile photo of Agent007Agent007
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    @agent007
    Join Date: 2003
    Post Count: 61

    If I told you I’d have to shoot you…. [:D]

    You need to make phone calls – and not just to RE agents. Try targeting key regional centres in your State or Territory, and call companies, govt departments, organisations and so forth….

    Remember, “seek & ye shall find”.

    Erika, I dunno. As I wasn’t buying this time my due diligence wasn’t very thorough. Interestingly the PM had a week holiday this week, so I relied mainly on the RE agent for trends in the areas, vacancy rates & good/bad streets for the properties concerned.

    The guy that bought 3, flew to the area the day before as it is a long drive from home.

    Personally I would prefer to buy the whole duplex rather than one side in case the sewer rats live next door.

    Cheers,

    David Paxton
    “You Only Live Twice”

    Profile photo of Agent007Agent007
    Participant
    @agent007
    Join Date: 2003
    Post Count: 61

    Read one of the feature articles in the August/September 2003 issus of “Australian Property Investor” magazine – available at all good newagents (if you don’t, you SHOULD…).

    The API special report “Under Wraps” interview Steve McKnight & Rick Otton.

    It propbably raises more questions on the issue.

    IMHO for some people (wrappees) wraps can be the only alternative – but for many others low doc loans & second tier banks may be the way to go.

    And for wrappers, they better study tehre system & local laws very well, as there are pitfalls for the inexperienced PI as well.

    Cheers,

    David Paxton
    “You Only Live Twice”

    Profile photo of Agent007Agent007
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    @agent007
    Join Date: 2003
    Post Count: 61

    I would agree with the comments so far – that +ve cashplow opportunities may be missed if you ignore towns < 10,000 in size.

    I think the main issues to address with towns below 10,000 (besides the mortgage ones which I’m sure a competent mortgage broker can resolve, hey guys…) would be:

    1. Vacancy rates
    2. Property management &
    3. Maintenance

    By speaking with local property managers & trades people you should be able to get answers to these 3 questions.

    Just remember isolation could add travel costs & delays to points 2 & 3.

    Anyway its just common sense. Do your due diligence & you can’t go wrong.

    But hey, I’m just starting PI so maybe so more experienced PI’s could let us know if I’m on the right track, and whether I’ve missed something.

    Cheers,

    David Paxton
    “You Only Live Twice”

    Profile photo of Agent007Agent007
    Participant
    @agent007
    Join Date: 2003
    Post Count: 61

    Firstly, the asking price may not reflect market value. Eg. Market value for an IP in a particular condition maybe $60,000, but th evendor or agent could be asking $50K, $70k or whatever.

    Secondly, the “Good Book” says “ask & ye shall receive”. This applies to PI as well. So I put my offer on the above example at no more than $48K ($60k less 20%). Note here I am ignoring the asking price as the banks valuation will be based on true market value anyway. In fact I may offer only $45k or $40K to get me a bit of room in case of a counter offer.

    BTW the 20% is only an arbritary figure – it could be 10%, 15% or 40%…

    And a Steve says on his “Tales from the Trenches” tapes – the worst that can happen is they say “No, you insulted us, don’t you ever ever put an offer to us again” (Highly unlikely hey?).

    What most likely would happen is that the vendor will submit a counter offer, or say no the asking price remains.

    Or even better still, say yes “it’s a deal”!!!

    Anyway we’re getting off track here….

    Anybody help with my two questions?

    Cheers,

    David Paxton
    “You Only Live Twice”

    Profile photo of Agent007Agent007
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    @agent007
    Join Date: 2003
    Post Count: 61

    Oh… & I forgot.

    No everything in RE in online. So call the agents up to find out what is available. And they may tell you of a motiveted vendor about to put there house up for sale.

    Good Luck!

    David Paxton
    “You Only Live Twice”

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    @agent007
    Join Date: 2003
    Post Count: 61

    Freedom Seeker,

    I live in SA too.

    Go to ABS website & print off the population & growth stats form all towns in SA.

    Look at the ones with 5,000 or more.

    Then research each one – RE on website, sales data stats, trends & new developments etc.

    There is no easy way. Just research, get your finance in place, then when you find the +ve cashflow properties (there are a few out there in SA), go out & put your offeres on them.

    Good luck.

    David Paxton
    “You Only Live Twice”

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    Post Count: 61

    Whoops!… In that last example I was meant to write you buy an IP WITHOUT a garage or carport.

    Sorry for the confusion.

    David Paxton
    New Homes Consultant
    Sterling Homes
    0412 853 395

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    @agent007
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    Post Count: 61

    Steveod,

    Pardon my ignorance (I’m new to this forum), what is a PPI?

    And how do you know you got a competent pest controller?

    I saw ACA last night where a shonky pest controller (Steve Fuller – his name was publised on TV) said a house that was literally falling apart from termites had NO termites.

    Do I just use a big name pestie?

    And thanks Bill for your recommendations.

    Thanks,

    David Paxton
    New Homes Consultant
    Sterling Homes
    0412 853 395

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    @agent007
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    Post Count: 61

    Thanks guys.

    Blackhole, I am not a real estate agent (otherwise yes I would have that data). I sell new homes for a project builder. We have NO sales data because that is irrelevant for us. I do quotes & sign them up, & Sterling Homes builds them.

    Any other sources would be appreciated (also by other forum members too).

    Thanks!

    David Paxton
    New Homes Consultant
    Sterling Homes
    0412 853 395

Viewing 20 posts - 21 through 40 (of 46 total)