Forum Replies Created
You can buy software like PIA and POSH that will take tax effects into account and give you an after tax cashflow, as well as other info. You’d be better off spending money on something like this.
I’m more than happy to email you a sample report from one of these if you’re interested.;
Regards
Alistair PerryLandbanking, on a large scale, can be incredibly profitable if you know what you are doing, eg buying rural land that you have a pretty good idea can be rezoned into a residential zone down the track. In my town planning business I have seen many people make very large amounts of money out of this tactic, but I have also seen people push themselves to the wall.
Basically it is a risky tactic if you don’t know what you are doing and/or you don’t have the resources to fund the holding costs. If you do know what you are doing it can be spectacularly successful.
On a smaller scale eg buying a property with a house that you can rent while you get a permit to develop into a small number of units, is less risky and quite a sound strategy for a smaller investor.
Regards
Alistair PerryBruce,
I have to disagree with you. Speaking to the a council town planner before you have a design is an utter waist of time, it all sounds very sensible but in reality you will either get nothing from them or what they tell you will mean nothing anyway.
The first point of call should be an architect or draftsperson. Once you have a concept drawing, it is worth speaking to the council. Before this, there is nothing to discuss.
Regards
Alistair PerryHi,
To subdivide your generally need a planning permit first. You first point of call should be to find an architect/draftsperson who is experienced in this area. This is not an area where you should skimp, a good designer may be relatively expensive, but not compared to the value they can add.
Regards
Alistair PerryHi lsaver,
Look up basic community profiles in the census section of the ABS site, these will have the info you are after. If you are having trouble locating them pm or email me the suburbs you want info on, I have quite a lot of demographic info on my computer at work and may have something useful I can send you.
Regards
Alistair PerryHi Doog,
To sell the land seperately you still need to get a town planning permit. What you can do with the block will be strongly dependent on the skill of your designer, I would suggest you find yourself an architect or draftsperson who is experienced in mediaum density housing and get them to give you some advice. It is a waste of time to speak with the local council if you don’t have a concept to show them. If you would like a referal to a designer, I have a number I could recommend to you, just send me an email at [email protected] and i will send you a couple of options.
Regards
Alistair PerryI would think that Frankston will be the biggest winner from the new freeway. It has already started to grow and has the beach as a major attraction.
Regards
Alistair PerryHi Nadia,
I don’t do it myself full time, but I also have plenty of experience in this area, as I own a town planning consultancy and work full time for people who do this. Unless you are doing a fairly large number of lots or havfe a lot of resources already, it would be difficult to do full time, because of the lead time on projects. The people who are most successful at this strategy, including Michael, make sure they are in a position where they do not have to sell the end product,they may choose to, but do not get themselves in a position where they are a forced seller.
Regards
Alistair PerryI’m reading “Pooh’s Heffalump Movie” to my daughter. It’s far more interesting and eduactional than most investing books.
Hi Dr X,
I’m sorry the only town planning solicitor we have dealt with in SA has apparently since died. You should speak to John Stimson at Connor Holmes Consulting, he’s a top class town planning consultant his phone number is 8232 9088.
Gross, can you go direct to appeal in NSW, this is not possible in Victoria although often developers push to get a refusal a quickly as possible at council level so they can get to VCAT more quickly.
Regards
Alistair PerryDr X,
Unfortunately this is a common occurance. You have been bitten on the bum by local government poitics. Having received support from the council officers, you have a very strong chance of wining at appeal. I should be able to get a recommendation for a good solicitor for you, I’ll try and get back to you tomorrow with some names.
Regards
Alistair PerryI use Andrew Goldberger and Morry Kalkopf at Guests Accounting in Caufield (www.guests.com.au). I have also referred them to a number of forum members before and all have been more than happy.
Regards
Alistair PerryHi Gross,
If you have a very high income you can get 85% no LMI through Westpac. This has been available for some time. Thee is also a smaller lender offering 90% LVR with no LMI.
Regards
Alistair PerryHi Learn&Share,
You can do it well for about $10,000. Your major cost will be the designer, then you have a town planning consultant and finally a surveyer. There is also the possibility of needing other consultants such as an aroborist or traffic engineer, although these are not always required.
It is important to understand that when you are in the design and approval stage of a project, the skill of your consultants will have a direct baring on the time taken and the quality of the end product. You are not purchasing a commodity! This directly effects holding costs and, more importantly, the value of the end product.
Regards
Alistair PerryHi Gabmar,
One of the great things about property is the amount of leverage it allows. This is not extended to properties such as retirement units. If you have a lot of equity and are just after cashflow then it may be ok, but if you are starting out and do not have a large equity base then buying such an asset will hinder you in moving forward, in terms of adding to your investment portfolio.
Regards
Alistair PerryHi Mal,
That all makes a lot of sense. Personally I would use the one lender to maximise the IR discount, but having a different lender for your PPOR does give it a little more protection.
Regards
Alistair PerryHi Mal,
Your structure sounds good, apart from a couple of things. If you have multiple loans with one institution you are often able to negotiate higher discounts, I can’t see a good reason for using multiple lenders unless they refuse to keep lending to you.
I would also have some concerns re the deductability of some of the interest against your IP loans, if you have revalued taken money out and put it into the PPOR loan. If the money is being placed in an offset account prior to being used for investment this may be ok .
Regards
Alistair PerryHi Erik,
Its not from a private message, I wouldn’t have copied it if it was. But thanks for clearing it up.
Regards
AlistairErik,
You posted this elsewhere on the forum,
Something for you, I have a friend with a house in Minchinbury on 700sqm. House next door is going for sale and there are town houses in the street already.Interested in looking at it or would you know somebody that is
Who owns the house, you or your friend?
Regards
AlistairHi Wazl,
$5,500 for plans and taking the application through to permit stage is pretty cheap. I would be concerned about the quality at that price.
As you wouldn’t need the extra money unless you received a permit anyway, you should not be too concerned about having to pay it out before you receive a finance approval. Your broker should be able to tell you whether or not you will be able to service the loan, therefore the only thing that is of concern is the final LVR. Unless you are really pushing it this shouldn’t stop you from getting a loan.
Regards
Alistair Perry
