Forum Replies Created
Hi Brian and Lorretta,
I’m an Ipswich girl too so would be happy to meet up some time. Drop me a PM when you set a date and time.
Cheers,
AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Australian Building Inspection Services have branches in each state http://www.abis.com.au
AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Hi Vivek,
A subdivision can take months or even years and it really depends on how complex the job is. Lots of reports are needed, drawings to be prepared, tenders obtained etc. and each stage takes time. Tomorrow is final inspection on our subdivision, YIPPEE, which we started Oct 2004, so be patient!
AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Hi Buynow,
Here’s an extract of a document off our website that provides a few details about the subdivision process:
What is Subdividing?
Subdividing is when a piece of land is split into two or more pieces (ie separate lots). The process is controlled by the local Council. Planning codes and procedures vary significantly between Councils and also between States and Territories, as do the relevant fees and charges.Factors to examine when considering a Subdivision
• Local town planning regulationsLand zoning restrictions
Minimum size of lots
Access to water and sewerage services
Setback requirements
Minimum building envelopes
Parks and open space
Easements
Vehicle access including Council refuse collection
Storm water management
Increased noise from new development
Environmental and heritage issuesHidden Costs
A subdivision can take several months (and sometimes even years) to complete so you must factor in your holding costs such as:
• Interest
• Rates
• Land maintenance – (eg slashing and weed control)Many astute Developers make the purchase contract for the land subject to the acceptance of a Development application approval with Council. This is usually done with an option agreement (see your Solicitor for more information)
Dividing the Land
Before you rush out and build a new dividing fence in your backyard, you should first consult your local Council for specific guidelines and costings, as it is imperative that the property is divided correctly. Any errors at this stage will cause major problems further down the track.The Process
Most Councils require a Development/Planning Application to be lodged, together with details and drawings of your proposal. A Town Planner or Surveyor can assist you with this process, and they may also be able to give advice regarding conditions that the Council is likely to require.Before lodgement of the Application, you can ask the Council for a “Pre lodgement†meeting to discuss your subdivision and determine what issues will need to be addressed in the Application.
When the Council receives your application, they may require you to erect a notice board for public viewing. The purpose of the board is to alert the public of the proposal by providing details of the subdivision. The Council may also write to the owners of the residents of the neighbouring properties advising of your intentions. We suggest that you contact the Council to find out what procedures your local Council uses.
Additional information the Council may require
Water and Sewerage
• Are existing services available?
• Can the existing infrastructure cope with increased use or need upgrading?
• Is permission required from neighbours to access property?Storm Water
• How will storm water run off be managed?
• Is a drainage pit required?
• Are tanks required to regulate the flow of storm water?Noise
• Will existing main road traffic noise affect the subdivision?
• If so, how will this be reduced? (Fences and/or earthworks)Soil Conditions
• Do the soil conditions (eg.sand, clay) impact on road and footpath design?
Top
Other issues
Footpath
Lighting
SignageIssues for the Developer to consider
For the Developer there are also other issues to consider such as:“Wasted†land due to unusual configurations
Steep slopes
Flood-prone land
Other planning overlays (ie restrictions)
Other factors that may reduce the number of lots and so profitability.Approval of the Development Application
The approval process for your Application may take several months depending on the complexity and size of the subdivision.You will then be issued with a conditional approval covering topics such as:
Developer to supply a plan of survey and mark land with survey pegs
Road reserve
Easements over stormwater, water and sewage mains
Requirement that storm water pipes be designed to cope with a “1 in 100 year†event.
Dust control
Hours of permitted work (usually Mon – Sat 6:30am to 6:30pm)
Headwork contributions to be paid by Developer
Open space (parks)
Social infrastructure
Road infrastructure
Water infrastructure
Sewerage infrastructure
Street scape contribution
Disposal of cleared vegetation
Entry walls or features
Connection fees to live sewer mains
Road (width, pavement depth, footpaths, kerb and channel, ramp profiles)
Street lighting
Fire Extinguisher (Battle axe blocks)
Underground electricity and phone
Erosion and silt management
Maintenance period of roads
Retaining walls
Fire ant inspections
Portable long service leave for Building and Construction Industry
If you are not satisfied with the Council’s decision, you may apply for a review.Operational Works
Before work can begin, you will need to engage the services of a Civil Engineer to design and draw the sewer, water, road, footpaths and any other Council requirements.This is a separate application usually referred to as “Operational Works†and attracts additional fees and charges.
Final Stage
All civil work will require Council and Engineering certification. When the subdivision has been completed to the satisfaction of the Council, you can then apply to register each separate title deed.Conclusion
Land subdivision is a $mart way to fast track profits into your investment portfolio. However, as with all investment decisions, thorough research is necessary in order to balance the level of risk associated and ensure that the process runs as smoothly and quickly as possible, and that the best, most profitable outcome is achieved…..”Also a great resource book is “Australian Residential Property Development” by Ron Forlee
Best wishes,
AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Contact Cameron Perry , here’s the link:
AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Mmm, not sure about that link you provided W4L, as I’m always a bit sceptical of those that promote “education” at the same time as selling real estate.
AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Hi Ibergin,
Welcome to the PI forum and the world of property investing. I think you’re jumping ahead though how can you start looking at property if you don’t know what it is you’re trying to achieve? So my advice would be to follow our 7 step program:
Step 1 Set your personal & financial goals
Step 2 Prepare a budget & savings plan
Step 3 Determine your investment strategy
Step 4 Build your team
Step 5 Research areas
Step 6 Prepare a feasibility study
Step 7 Negotiate the deal and repeat!When you’re ready to start your reseach, given you live in Qld here’s a few links for some data reports:
http://www.lgp.qld.gov.au/?id=4035
http://www.lgp.qld.gov.au/?id=3792
http://www.propertydivas.com.au/5Tools/DivaLinks.aspx
http://www.oum.qld.gov.auAmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
I agree with Richard, why not borrow the equity back by refinancing and use the funds for either more property or shares. Unless you’re going to use the fund to pay down personal debt I see no point in selling not to mention the commission & CGT payable.
AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Congradulations on your first IP.
The following is an extract of an article off our website about Property Management, sorry its a bit longer than 3 questions!There is considerably more to Property management than just collecting rent – ask any property manager! Good property management plays an important role in ensuring your property receives maximum returns and remains in tip-top condition.
Role of a Property Manager
An efficient property manager is well worth the relatively small fees charged. Responsibilities of a manager can include:• Appraise the property for rental and assess the market rental amount
• Interview, screen and select suitable tenants
• Prepare initial condition report, lease documentation and bond authority and collect initial payment
• Receive rent and chase late payers
• Conduct periodic inspections
• Report damage or maintenance issues to landlord and arrange for rectification where appropriate
• Handle all tenant communications
• Co-ordinate the moving out of tenants at termination of lease
• Appear before Tribunal in cases of rent default or other serious issues.Having a professional property manager on your “team” will help ensure maximum return on your investment property and remove the frustrations often associated with dealing directly with tenants, as well as saving you considerable time and hassle.
What should I Look for in a Property Manager
Although property mangers are usually part of a real estate office, they should ideally be a separate department from the general Sales area. To reduce the risk of problems arising, you should ensure the office has efficient business systems and procedures in place to deal with daily issues that may arise such as emergency repair requirements and late rent payments.Your property security is important so insist that the property manager conducts personal inspections, rather than just hands out keys to strangers who walk in off the street. This opportunity will allow the property manager additional time to assess the character of the applicant and ask questions.
Take the time to interview several property managers to ensure you feel confident about their role. Ask your potential property manager questions, such as:
Suitability:
• How long have you been a property manager?
• What qualifications and ongoing training do you have?
• Do you have a good up-to-date understanding of State legislation and important caselaw?
• What property investment background do you have?Financials:
• How would you assess the market rent on our property?
• How would you maximise the return on our property?
• What initial letting fees and commissions do you charge?
• What ongoing letting fees and commissions do you charge?
• Do you charge re-letting fees if a tenant re-signs at the end of a lease or leaves early?
• Do you charge for attendance at Tribunal and associated administrative work?
• Do you charge any “hidden fees†such as for fortnightly/monthly statements or administrative tasks?Procedures:
• How will you advertise and market my property and what costs are involved?
• How do you document conditions reports and do you take photos?
• How do you screen prospective tenants and what references and other checks do you make?
• How much bond do you collect and how do you carry out the administration for this?
• How often is rent collected and paid?
• What procedures do you follow if rent is unpaid?
• How often are inspections made and what procedure do you carry out?Finding the right Tenant
Applicants should be required to complete a standard form detailing personal information including current and previous addresses and whether they are rental properties. Photo ID and proof of income should be shown and employee and character references should also be provided. All information should be carefully checked and verified by the property manager and a check of the National Tenant Database should be carried out. Based on all the details collected a comprehensive assessment should be made of each applicant.
The property manager should then discuss all applications with the landlord and recommend the best choice. Once a suitable tenant has been found, a tenancy agreement will then be prepared along with a condition report, lease and bond form, all of which require signature by the tenant. The condition report should be backed by photographic evidence of the condition of the property (both inside and out), which may be used as proof in the event of a dispute regarding the state of the property at a later stage.
When a tenant vacates the property, the property manager should provide the tenant with a detailed checklist of items requiring cleaning and attention before leaving and should reinforce that, subject to normal wear and tear, the property must be left in the same state it was in when the tenant initially took occupation of the property. You as the owner should also be offered the opportunity to inspect the property before the bond is refunded.AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Well done on your prediction, perhaps you can get your crystal ball out and tell us all if interest rates will rise this year also & by how much…now there’s a challenge.
I do agree though with a lot of the posts here that getting into debt is just to easy, and I think Steve refers to it in his book as the “debt buffet”. I’m totally against borrowing money for new furniture, cars, holidays etc and prefer to drive my safe but humble family station wagon. Hey its got 7 seats & air cond, no electric windows or CD players but I get from “A to B” in comfort, although not the latest fashion. And yes the hand me down furniture will do just fine and it just goes to prove my signature saying (see below) “It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Hi Compleks,
Welcome to the PI forum and the world of property investing.
Its often very overwhelming when you first start out so my advice would be to follow our 7 step program:Step 1 Set your personal & financial goals
Step 2 Prepare a budget & savings plan
Step 3 Determine your investment strategy
Step 4 Build your team
Step 5 Research areas
Step 6 Prepare a feasibility study
Step 7 Negotiate the deal and repeat!Keep reading as knowledge is power so grab a copy of Steve’s latest book “0 to 260 Properties” & spend some time searching and reading the forum posts. Its all free and helps to build your knowledge base.
AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Hi Brooster,
With a property worth $320K and debt of only $85K perhaps it wouldn’t hurt speaking to a Finance Broker first, to get things sorted out. Maybe refinancing will provide you with the extra capital you need to move forward…..Oh, and keep reading.
AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Hi Tammy,
Costs have certainly increased since 2003/04 however the result was:
Land
23139Removal House
45155Kitchen
4920Bathroom
3221Deck & carport
7726Electrical
3020Plumber
6507Building materials & landscaping
37399TOTAL
131087Net Sale proceeds
207787Pre tax Profit
$76700We really cut every corner we could and even recycled the kitchen but installed new tops and instead put in SS appliances.
We must have the bug as we intend doing another removal house next year, as we’ve just received DA approval to subdivide the back off one of our rentals. We couldn’t build a new home even if we wanted to due to the character listing over the land. We won’t be selling this one though and will keep it as another rental.AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
If you’re going to renovate the bathroom later (within 12 months) then I’d probably look at finding the source of the leak and then using Silicone & some re-grouting to “plug” the leak. No point tiling the shower then pulling it all down later. Don’t leave it too long before you renovate though as water damage can cause structural problems.
I too taught myself to tile by grabbing a copy of the DIY video from Bunnings available in the tiling section and then practicing at home. I’m not the fastest tiler but the results are as good as any professional.
AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Only 3 books…Mmm…not easy but here’s my pick:
Secrets of Property Millionaires Exposed by Dale Beaumont
A collection of stories from Hans Jakobi, Edward Chan, Craig Turnbull, Patrick Bright, Dymphna Boholt, Sam Vannutini, Peter Comden, Rick Otton, Green & LeatherFemale Entrepreneurs, by Leiza Clark
Includes Kirsty Dunphey but the other stories are about successful Aussie girls such as Janine Allis (Boost Juice) Kristina Karlsson (Kikki.K) Katrina Allen (De Jour) plus heaps more. A great motivational read.Australian Residential Property Development by R Forlee
(A bit boring to read but a fantastic resource which explains in simply terms the step by step process.)AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
I agree that doing a reno is a great way to add value. When we purchase a property we always look at how we can unlock value whether that’s with a reno or subdividing. This strategy has seen us increase our equity rapidly, and we have chosen to sell some to realise that profit, and others we have kept for the long term.
Having said that though, most of the reno work we have been able to complete ourselves, except for the plumbing & electrical work, which has saved us thousands of dollars but has meant sacraficing each weekend…..not easy with the kids in tow. So if you can do a lot of the demolition, painting, tiling etc you will be profitable although exhausted each Monday morning!!
AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Hi Hailey,
Welcome to the PI forum and the world of property investing.
Its often very overwhelming when you first start out so my advice would be to follow our 7 step program:Step 1 Set your personal & financial goals
Step 2 Prepare a budget & savings plan
Step 3 Determine your investment strategy
Step 4 Build your team
Step 5 Research areas
Step 6 Prepare a feasibility study
Step 7 Negotiate the deal and repeat!Keep reading as knowledge is power so grab a copy of Steve’s latest book “0 to 260 Properties”.
AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Hi L.W,
Glad you liked our new website and the story section, perhaps one day we’ll all be reading about your removal house story.
Regards,
Amanda
AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Yes we’ve repainted laminate cupboards using the White Knight paint and it looked fantastic when done, particularily with some new chrome door handles.
I’d get new preformed bench tops though due to the high traffic use which I imagine would scratch in no time.AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Hi again Cruzinbud,
How long?? We’re almost finished our subdivision & the land was purchased Sept 2004 …so be patient as it can be a very complex issue. Here’s an extract of a document off our website that should get you started:
What is Subdividing?
Subdividing is when a piece of land is split into two or more pieces (ie separate lots). The process is controlled by the local Council. Planning codes and procedures vary significantly between Councils and also between States and Territories, as do the relevant fees and charges.Factors to examine when considering a Subdivision
• Local town planning regulationsLand zoning restrictions
Minimum size of lots
Access to water and sewerage services
Setback requirements
Minimum building envelopes
Parks and open space
Easements
Vehicle access including Council refuse collection
Storm water management
Increased noise from new development
Environmental and heritage issuesHidden Costs
A subdivision can take several months (and sometimes even years) to complete so you must factor in your holding costs such as:
• Interest
• Rates
• Land maintenance – (eg slashing and weed control)Many astute Developers make the purchase contract for the land subject to the acceptance of a Development application approval with Council. This is usually done with an option agreement (see your Solicitor for more information)
Dividing the Land
Before you rush out and build a new dividing fence in your backyard, you should first consult your local Council for specific guidelines and costings, as it is imperative that the property is divided correctly. Any errors at this stage will cause major problems further down the track.The Process
Most Councils require a Development/Planning Application to be lodged, together with details and drawings of your proposal. A Town Planner or Surveyor can assist you with this process, and they may also be able to give advice regarding conditions that the Council is likely to require.Before lodgement of the Application, you can ask the Council for a “Pre lodgement†meeting to discuss your subdivision and determine what issues will need to be addressed in the Application.
When the Council receives your application, they may require you to erect a notice board for public viewing. The purpose of the board is to alert the public of the proposal by providing details of the subdivision. The Council may also write to the owners of the residents of the neighbouring properties advising of your intentions. We suggest that you contact the Council to find out what procedures your local Council uses.
Additional information the Council may require
Water and Sewerage
• Are existing services available?
• Can the existing infrastructure cope with increased use or need upgrading?
• Is permission required from neighbours to access property?Storm Water
• How will storm water run off be managed?
• Is a drainage pit required?
• Are tanks required to regulate the flow of storm water?Noise
• Will existing main road traffic noise affect the subdivision?
• If so, how will this be reduced? (Fences and/or earthworks)Soil Conditions
• Do the soil conditions (eg.sand, clay) impact on road and footpath design?
Top
Other issues
Footpath
Lighting
SignageIssues for the Developer to consider
For the Developer there are also other issues to consider such as:“Wasted†land due to unusual configurations
Steep slopes
Flood-prone land
Other planning overlays (ie restrictions)
Other factors that may reduce the number of lots and so profitability.Approval of the Development Application
The approval process for your Application may take several months depending on the complexity and size of the subdivision.You will then be issued with a conditional approval covering topics such as:
Developer to supply a plan of survey and mark land with survey pegs
Road reserve
Easements over stormwater, water and sewage mains
Requirement that storm water pipes be designed to cope with a “1 in 100 year†event.
Dust control
Hours of permitted work (usually Mon – Sat 6:30am to 6:30pm)
Headwork contributions to be paid by Developer
Open space (parks)
Social infrastructure
Road infrastructure
Water infrastructure
Sewerage infrastructure
Street scape contribution
Disposal of cleared vegetation
Entry walls or features
Connection fees to live sewer mains
Road (width, pavement depth, footpaths, kerb and channel, ramp profiles)
Street lighting
Fire Extinguisher (Battle axe blocks)
Underground electricity and phone
Erosion and silt management
Maintenance period of roads
Retaining walls
Fire ant inspections
Portable long service leave for Building and Construction Industry
If you are not satisfied with the Council’s decision, you may apply for a review.Operational Works
Before work can begin, you will need to engage the services of a Civil Engineer to design and draw the sewer, water, road, footpaths and any other Council requirements.This is a separate application usually referred to as “Operational Works†and attracts additional fees and charges.
Final Stage
All civil work will require Council and Engineering certification. When the subdivision has been completed to the satisfaction of the Council, you can then apply to register each separate title deed.Conclusion
Land subdivision is a $mart way to fast track profits into your investment portfolio. However, as with all investment decisions, thorough research is necessary in order to balance the level of risk associated and ensure that the process runs as smoothly and quickly as possible, and that the best, most profitable outcome is achieved.AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
