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Subdivision is the breaking up of a property on one title into two or more different titles. The process is handled by a surveyor, although you generally need a town planning permit before it is possible. In most cases the value of the sum of the smaller properties will be larger than that of the original property.
Hi Matt,
he great things about property investment is the high leverage that is available. However, this does not always extend to small mining towns, you should check with a lender or broker to make sure that you can obtain a loan for such a property.
Regards
AlistairI’m happy with the 18th. In terms of speakers I’d be really keen to have somebody speak on either asset protection or valuations, but any topic would be fine.
Regards
AlistairYou should definately pay all of the cash into your home loan, as this is non-deductable debt. You can then loan against the equity in your home for deposits if necessary, make sure this is a seperate loan and it should be 100% tax deductable.
Speak to a mortgage broker about how to best structure this.
Not many developers would be interested in a 15% return, more like 25%+. That is with approvals.
I don’t think Steve has used Kiasaki as a model, maybe John Burley.
Bacchu,
It is unlikely you will be able to ensure 100% that your view is not built out. You should get advice from a town planner as to what could possibly be built next door. Planning laws could offer you some protection, but not 100%.
Regards
AlistairHi,
I am glad to hear that people enjoyed the afternoon as much as I did. I know Frank enjoyed giving the presentation, so I hope everyone got something out of it.
I think Leila’s idea of rotating the organisation is a good one. (I hope your ankle id getting better by the way Leila.). I also like Alvin’s idea of the Yahoo Group and have signed myself up.
Alistair
The statement was 22% per year for 10 years, not 22% over 10 years.
There is already one available, its been out for a few months now.
Scott,
You’ll probably find that your current loan allows for construction. If not you could refinance to one that does. If you are building more than 4 units, you may have to use a commercial lender though.
Regards
AlistairHi Marvin,
I emailed you his contact details. Let me know if you don’t receive it.
Alistair
There are a number of people I have heard of who rent by the room, and one does short term rentals to backpackers. This increases risk (vacancies, damage etc.) but also can increase the returns.
Hi Marvin,
I have a friend who sublets properties on short term leases and does quite well. He approaches the landlords directly and offers them slightly above market rates, rather thn going through letting agents. Perhaps you could try this.
Regards
AlistairNathan,
With regard to your second query, if it is Vic, you only need notify the owner of the application. I beleive you may need their written consent in other States.
Regards
AlistairStephan,
There are some good loan products that offer 100% finance, but only for PPOR.
Regards
AlistairHi Penny,
The actual subdivision does not take a long time, what takes time is the planning process. In most cases you need a planning permit before you are able to subdivide. The length of time for this at least three months if there are no problems and a minimum of 6 months if it ends up going to appeal, and possibly much longer.
If you are planning on doing a subdivision, make sure it works on a 12 month turnaround for the planning permit. Not many take that long, but it is possible.
If you are in Victoria, have a look at http://www.dse.vic.gov.au which contains the planning schemes for every local government area in Vic, as well as zoning maps.
Regards
AlistairFinance for US properties is difficult, but definately not impossible. 100% LVR is though, you can’t even get that for an IP in Australia
Komari,
Be careful with small country towns. There is always the danger they will lose value, but also many are not acceptable to mortgage insurers and/or the lenders themselves. It would be easy to find youself with no useful equity and so no borrowing capacity.
Regards
Alistair