Forum Replies Created
Hi Whitelaw,
If you are subdividing just using a surveyer then you have obviously purchased quite large lots. This is really only possible in outer areas like Paynesville (which I think is a very good area by the way). In most cases it is necessary to obtain a planning permit prior to subdividing and councils generally like building to have started before they will allow the subdivision to go through.
Regards
AlistairHi Peter,
This is not a suggestion for making the unit cashflow positive, but is important nontheless. Make sure the loan you get is interest only and that you have a 100% offset account attached, as you intend to make the property an IP in future it is important that you don’t tie up excess equity in the property.
Regards
AlistairHi Dave,
One thing that is very important to understand when dealing with town planning is that the permit pertains to a design. The zoning and overlays are very important, but just because what you propose seems to fit the resrtictions they place on the block is by no means a guarrentee that you will get a permit to build what you want.
Your first port of call should be to find a good draftsperson/architect who has plenty of experience with medium density housing. What you can fit on a block will be heavily dependent on their skill.
If you would like a referral to a good designer please let me know and i wouild be omnly too happy to give you a few names.
Regards
AlistairI would go with a mixture of the two options. I would buy somewhere to live for a short time to get access to the FHOG, livie in it for at least 6 months and then move back home and turn it into a rental. If you do your sums I think you will find that you would be quite a long way ahead after 6 months as compared to if you bought a property and rented it out straight away.
Regards
AlistairHi Steve,
If they are good then use them by all means. I wouldn’t even consider the donation to the Salvos’s though. This is just a marketing ploy. If you are concerned about using a broker who is a good citizen ask them when you first meet them if they give to charities, I’m sure there are lots of brokers who donate money to good causes, just most have no need to advertise the fact.
Regards
AlistairHi Giulio,
The answer to your problem is pretty simple, don’t deal with the council yourself and don’t expect preofessional advice from an architect when it comes to town planning (some are very knowledgable in this area but most arne’t), get a town planning consultant.
Regards
AlistairHi Joolz,
I know a few commecial buyers agents who operate in Victoria, two of them that I know well enough to recommend, if you want some professional assistance with locating and purchasing commercial IP’s are:
Chris Lang of Gardner & Lang http://www.gal.com.au
Stuart Bonning of Bonning PropertyChris Lang’s contact details can be found on his web site, I’d be happy to give you Stuart’s privately, but he doesn’t overtly advertise so I’m not sure if he’d like his phone number posted on a public forum. Both are based in Victoria by the way, Chris in the CBD and Stuart in Hampton.
Regards
AlistairHi Mick,
If you already have approval for the subdivision you can do this with a simple construction loan. If not there are a number of lenders that will give you what they consider to be an unsecured loan of an additional 10-15% on top of the regular 70%, I’ve emailed you some info re this. There are also lenders that do a straight 85% lend, but these are more expensive and I wouldn’t recommend it in your situation.
You also ned to look at what happens after the subdivisions come through, as you will then be eligible for residential finance on the property. You should therefore get a loan that rolls into a residential facility as soon as the subdivision is finished.
Regards
AlistairHi Joolz,
For some info from this site look up some old posts by Dazzling, he has a fair bit to say about industrial property, and also has an entertaining writing style. If you buy a small shed or industrial property make sure thsat there is strong demand in the area, a lot of small business owners purchase their own facilities at the sort of price you quoted, so vacancy can be an issue.
Finance is another issue you might want to consider, it is slightly more expensive than residential finance, especially for smaller loan amounts. You also need a larger deposit, typically 30%, although you can go higher. Servicability calculations are also often less favourable than are residential loans because commercial loans are typically over a shorter period.
Regards
AlistairPorky,
I would suggest that changing your PPOR loan into an wequity manager would not be a great idea. You can keep the standard loan and a seperate equity manager against the same property, this would be much cleaner and will keep you non deductable debt on a lower rate.
Regards
AlistairHi James,
Not sure about Qld, but if yopu want to wrap in Victoria you need to register as a credit provider (assuming you would be wrapping to owner occupiers). This doesn’t cost anything, but is a legal requirement.
Regards
AlistairHi Chief007,
While there are a few lenders who don’t like service stations, there are a couple of the larger lenders who will lend against them. You should be able to get 70% LVR and a pretty good rate.
Regards
AlistairHi Janettel,
I have several clients in common with Nigel, who has also replied to your post. Every one of them has been very happy with his service, so am morew than happy to recommend him to you.
Regards
AlistairHi crj,
IMB’sbase rate at the moment is 7.75%, not bad but far from the best rate around. Delboy, at the level of borrowing you are looking at, probably ongoing fees would be as important as interest rate, but for your info about the best you would do on rate is 7.45%.
Regards
AlistairHi Richard,
If you don’t have any spare equity in your current property the family equity products are pretty good. If this is not an option you can get 100% LVR loans for pretty reasonable rates. You can even go to 106% if need be, although the rates on these loans are over 8%.
Regards
AlistairHi Westan,
Cameron is currently funding the purchase of a few hundred condos in Panama for US investors. He hasn’t done anything in Costa Rica, but he has a few contacts there.
Regards
Alistair PerryHi Matt,
If you want to limit the liability of individual members you will have to find either very strong development deals or purchase commercial property with a strong tennant and lease in place.
Regards
AlistairIt’s illegal to provide finance to a person in bankruptcy
Hi Paul,
My mother in law lives on a farm in Blanchetown. Prices along the Murray have risen incredibly during recent years and i think you would have trouble getting a decent property that gave you a reasonable rental return, the quality of tennants would also be pretty ordinary from what I have seen.
If you want cashflow, you might be better off looking at commercial property.
Regards
AlistairThe cashflow return should be calculated on the the equity or cash put into the deal, in this case $90K plus stamp duty and other expenses. The cash on cash return is not so bad if you look at it this way. If the property is really worth $450K and it was purchased for $300K it doesn’t really matter what the cashflow is anyway, you would flip it.
Regards
Alistair
