Forum Replies Created
Thanks for the reply Felicity. I will ask my accountant. I just thought seemings as you were discussing this type of transaction you would know.
Offering to fund the deposit seems like an interesting alternative to a wrap, but you wouldn’t want to have to pay full CGT until you had received the whole amount.
Regards
AlistairFelicity,
I am interested to know, if you sell a property and leave 20% in as vendor finance, do you have to pay CGT immediately, or is it deferred as with a wrap.
Regards
AlistairHi Bonnie,
I’m not sure what state you’re in, but I’ll tell you what your steps woulkd be if you are in Victoria. First you need to find a good architect or draftperson. This is incredibly important, more important than the price they charge(within reason) as you will not get a permit for a poorly designed development.
The designer will come up with a concept plan, which will detail the size of the development and basic design. This will show you how many units you can get and theeir size. You can get a rough idea of the end value from the development from this, and make up your mind if you want to go ahead. You can also take these plans into council and discuss what their attitude is likely to be. This process should cost you less than $5K (this is off the top of my head, I can give you some better estimates after I’m back at work if you like).
If you decide to proceed you then need to get towen planning drawings done and go through the planning process. This might also include using a town planning consultant, surveyor, traffic engineer, arborist etc. (nb. these consultants are not always all needed, but you will not know until you start the process).
Once you have your permit, you then need to get building drawings done, to get a building permit.
You can see there are a number of steps you must take, and you will not really know what your end costs will be until you actually get into it. My advice to you is find a good designer (be that an architect or draftsman) and go through the first stage. You will then be able to make a better assessment of the potential for your development.
Happy New Year
AlistairI’m almost embarrassed to add a post here. I am 32 and have only my PPOR (Val 460K, owe 300K) and 100K in shares.
I should add though that I have also been investing quite heavily in my business for a few years now, by way of forgoing wages and dividends. This has placed me in a position where I have a strong and growing income (though not passive). I am now looking to consolidate my work into lasting wealth and passive income through property and further share investing. I’m actually looking at my first IP at the moment.
If you like the idea of working for yourself, your own business is another area where you can invest. In my working life I worked for somebody else (in terms of full time employment) for a grand total of 3 months.
I would also like to say that while I have always spent less than what I earn, I have travelled overseas quite a number of times and have spent liberally on my social life. As a 19 year old, you should recognise that these things are also important. You may travel and go out when you’re older, but the experiences will be different (most probably a lot less wild). On one of my many nights out I met my beautiful wife, so I have no regrets on spending money in this way.
Regards
AlistairHi Bonnie,
Many of them charge a % of the cost of the development, particularly the really good ones. Before anybody can give you a reasonable estimate you need to state what the purpose of the plans are, does there first need to be a development application, you need specific plans for this, are you after everything including the building specifications, or just concept plans for a due dilligence?
Regards
AlistairI preferred just having Westfield Holdings, but I have no plans to sell any of my shares. So I agree with you that it is a very good company and investment.
What I was wanting to point out is that it is now one entity, where as it used to be 3 (it was referred to above as “trusts”). It is also not a simple property trust, as it is heavily involved in construction and development, and also manages some centres that it doesn’t fully own.
I’m glad you all like Westfield, as I have a pretty large proportion of my net wealth in the company (Due to its continual appreciation). But I should point out that there are no longer seperate Westfield Trusts. Westfield Trust, Westfield America Trust and Westfield Holdings have all been stapled together and now trade as Westfield Group.
Not a simple property trust anymore, but still a good investment IMHO.
Hi Luke,
To be able to make an informed judgement on the potential for rezoning of land you really need to read and understand information from a number of sources. Generally local and state Government authorities will have written policies with regard to future urban growth. An example in Victoria is Melbourne 20/30. If you read and understand these you will have a reasonable idea whether ot not rezoning will be possible in the near future.
The process itself is also often long and complex, depending on the current status of the land.
Rezoning land, particularly rural to residential can be very very profitable, but it can take a long time and cost a lot of money. If you decide this strategy is for you, do so well informed.
Regards
AlistairHi Patrick,
I don’t know what its like in otherb states, but in Victoria there is a huge and growing amount of work for town planning solicitors.
Regards
AlistairHi Morty,
I can recommend my own company, F.R. Perry & Associates as a town planning consultant. Have a look at our web page at http://www.town-planning.com.au.
I also know of a number of architects and draftspeople who are very good. Two that come to mind are:
Branov Design (Who I have designing a renovation to my PPOR at the moment) Tel: 9642 4114
Breathe Architecture (Are based in Brunswick) 9381 2007Regards
AlistairRobert,
I am emailing you a pro forma for a planning application so you can see what ifo you have to provide.
Regards
AlistairRobert,
You simply have to state on the application form that you have notified the owner. You don’t need anything signed.
I would also like to point out that when you contact a council, whether in person or by phone, the person you speak to is usually at the very bottom of the pyramid, often a student planner or recent graduate. You would do well not to take what they say as gospel.
Regards
AlistairHi Robert,
As per your request my company is F. R. Perry & Associates P/L. You can see ou web page at http://www.town-planning.com.au . I’m not trying to hide my identity, I simply don’t always post it because I don’t come on here to advertise.
You can take the word of somebody who answers an enquiry line if you like, but first have a look at the CV’s of some of our planners and then tell me who are likely to be more qualified.
I should add that as well as decades of experience, one of our planners helped write Rescode (The statewide code for resedential development), and was employed, during its introduction, to train local councils on how to apply it.
I will repeat again “You don’t need written consent from the owner, you only have to provide evidence that you have notified them”
Robert, I’m definately not offended by anything you have said. In fact I find your posts quite entertaining. You are wrong in this case however and should rrealise that you are outside of your area of expertise.
Regards
AlistairJohn & Robert,
I’m not sure which states you are both in, and things might differ between states (although I would guess there is no difference). I am in Victoria and the only stipulation here is that you notify the property owner. This is the same in all local Government areas.
There can be no way for the granting of a permit to have a detrimental effect on a property owner. The applicant pays for it (whoever they are), and it does not grant them a right to do the development, unless they control the land. In fact the only possible effect for the owner is positive, as the granting of a permit will generally increase the value of their land.
Of course, if you do not have the agreement of the landowner, and they make a formal objection, you are not in a particularly good position. However, their written consent is definately not a requirement.
With regards to my experience in this matter, I own a town planning consultancy in partnership with my father. We operate throughout Victoria on projects that range in size from dual occs to multi-story apartments, shopping centres and numerous other large developments. I guess what I am trying to convey to you is that I have some experience in this matter.
Regards
AlistairHi John,
To subdivide a block you first need a planning permit. The subdivision process usually doesn’t occur until building has commenced. Therefore what you really need to know is, can you start the planning process prior to settlement.
The answer is most certainly “Yes”. You must “notify” the land owner of the application, but you do not need their permission.
A tactic that is frequently used by developers is to take out an option to buy, dependent on their success in gaining approval for whatever it is they want to build.
I hope this helps.
Regards
AlistairHi Grant,
Steve’s books are great, but you should definately also read some other books as well, as there are many different investment strategies that work. You should look at what a range of successful investors do (both in property and in other investment areas) and then make a decision on a strategy that suits you.
Regards
AlistairI think some of you are being a bit harsh. If she wants to mix with people her own age, why should you have a problem.
Ian,
You can definately use a valuation as I described, with many of the major lenders. There are strict criteria that you have to follow. If you require any assistance email me at [email protected] and I give you some assistance.
Regards
AlistairIan,
If the deposit is your problem, valuers will give you a valuation based on the finished product if you can supply them with firm information on plans, materials to be used and costs. You can use this to negotiate with your lender.
Regards
AlistairBird,
You will most probably have to get a town planning permit before being able to subdivide. This can cost in terms of both time and money.
You can check the planning scheme for your council at the DSE web site, if its in Vic. The address is http://www.dse.vic.gov.au. The site will also give you info on zoning, overlays etc.
Regards
Alistair
