Forum Replies Created
Hi bnd, it is unlikely it would take anything like 2 years for a simple dual occ development. Planning would most likely take between 6 and 12 months, depending on whether there is opposition from the council and/or neighbours.
regards
Hi Neil,
We've just put up a new web site that will give you some of this info, it is at http://www.townplanning.com.au. There is a measuring tool in there which works Australia wide that will give you block dimensions and calculate total area, it also links to an areal photo of the block you are searching. In Victoria it also is able to generate a planning report which gives you info re zoning and overlays (this is not available elsewhere yet, but will be) and a property report which gives you title info and info on who provides utilities to the block.
You can get info on setbacks etc from the local planning scheme. Things like caveats and easments are listed on title, we are hoping to provide titles and other info such as recent sales history etc pretty soon.
Regards
bevo4650 wrote:Thank you for your response.So I guess the moral of the story is to shop around on brokers.
I'll have a search on here, I'm sure its been asked before but if anyone can recommend someone in or servicing Brisbane that would be great.
Thanks
You don't have to shop around, just find a good broker. I agree with the above recommendation, you should call Richard Taylor, he's in Qld and is a good bloke as well as being a good broker.
Hi Kara,
You are probably looking at 2 years plus if it is in Victoria. It's also very difficult to get a single block rezoned, unless its very large and suitable for chopping up. The reason for the length of time is that it is not ultimately an issue for the council (in Victoria anyway) it is a State Government decision, although the council does have a significant say, especially early in the process.
Regards
Hi Bevo4650,
You have received extremely poor advice, there are plenty of lenders who will accept your contract income. If you are planning on turning a current PPOR into an investment property there are a few issues you need advice on, in relation to structure.
Regards
The answer is unequivocally "No" . In an inflationary environment, which we are in and the Government and RBA are determined to maintain, wealth transfers from savers to borrowers and those holding real assets. Property Investors generally have higher levels of both debt and assets than the general population and as such should be, and have been over a very long time, beneficiaries of this simple economic law.
Having said this, wealth can be built more quickly by those with an active strategy, if their actions are beneficial.
I assume that is in $US, in which case you need to take into account relative exchange rates if you are viewing it from an Australian perspective. The graph does indicate the reality of what is going on over there in terms of inflation.
I think the real problem will be first home owners in the mortgage belt rather than investor's, reference what happened in areas like Melton when the financial crisis hit. Those investors who rely on refinances to enable them to maintain their portfolio's rather than cash flow will certainly have issues, but a large portion of those were shaken out last time around. I'm no bull, and I've sold a a lot of property the last couple of years but I'm also staying invested, just at a level that is very easy to manage.
Are we talking Australian property now Freckle? If so that comment is way out, only about half the houses in Australia have a mortgage against them at all, I've got no doubt that we are in the midst of a property bubble, but it's been created by the way the Gov manages the economy, I don't think they are going to change much so property should stay overvalued. I also think if property did get smashed the RBA would intervene by dropping interest rates, regardless of inflation.
This is true, but only because your Government can issue currency to itself and its debt is largely denominated in that currency. US Gov debt is increasing in a virtual 0% interest rate environment, how is it ever going to pay this debt back, particularly when rates o back up? The simple answer is that it won't, it will either openly default or more likely it will continue to devalue the $US so that the real value of that debt goes down, this is default by stealth.
The devaluing of the $US is what is really an issue for Aussie investors over there, take as an example the US stock market which has recovered in $US terms, but in terms of A$ it is way down as at its previous peak the $US was worth a lot more than it is now.
If these guys hold cash i think a large portion of it will be in overseas currencies. Borrowing a phrase I heard recently "Holding $US Gov Bonds is a return free risk" and bank deposits or other types of bonds are no different. Low interest rates and an almost certain increase in inflation (some argue it is already happening and is being hidden by Gov manipulation of the way inflation is calculated) does not provide an attractive environment for holding cash.
On US property, I think people who leverage in and can lock in current low rates will possibly do well because inflation will rk in their favour.
Hi BJ,
Given your credentials I'd be interested to hear your thoughts on the exchange rate. I don't have a strong opinion as to whether it is a good time to invest in the US or not, but i am pretty sure the long term outlook for the USD is pretty grim. I certainly think that is overly simplistic to think their will be a swing back in the exchange rate just because the AUD is near historical highs, you must have some reasons for thinking there will be a correction other than this.
Regards
Most of the banks have specific policies regarding non recourse lending (lending with no recourse to the borrower/guarantor(s) in case of default), its not that difficult and the loans don't have to be huge, we did one this week for only $975K for a client. Basically the tenant has to be of reasonable quality (ie something like a doctor, lawyer etc or a largish company, to give the lender some sort of comfort that they are unlikely to disappear or go broke), the term of the loan must be 6 months less than the lease, which can cause some issues when rolling over, and there are certain interest coverage and debt servicing ratios that must be met by the lease on its own, max LVR between 60 & 65%. Some lenders give you a bit of a hit on risk rating, and so pricing, others don't.
Regards
Hi Natasha,
Unfortunately you are not likely to have much luck, certainly not with a bank.
Regards
Hi Natasha,
You can get non-recourse lending against commercial property up to 65% LVR, subject to a few conditions largely relating to the tenant and lease. I don't like your chances with resi property though, specifically because the leases and tenants don't meet the criteria required for waiving guarantees.
Regards
I highly recommend Mory Kalkopf at:
Guests Accounting
234 Balaclava Rd Melbourne VIC 3161
(03) 9509 7033
Regards
If you have been told that you are simply not speaking to the right person, there are numerous options mentioned in posts above, i suggest you speak to somebody who knows what they are talking about, there are plenty of options right in front of you.
You don't have add "or opportunity", risk goes both ways, that's a given. My reason of buying in on this argument is firstly because the actions of Governments the world over and the future effects of these is a very interesting topic and very relevant to everyone, not just people investing in property overseas, and secondly because I don't think that a lot of people investing overseas know anything about what can effect exchange rates or the extra layer of risk they add to overseas property. I know from speaking with a lot of people investing in the US that a lot of them think that because the $US has fallen against the $A that it will go back automatically, my concern is that the $A will continue to appreciate against it and also the Yen because of the policies do the US and Japanese Governments. Investors need to appreciate that this is a very real possibility, whether it ends up being the case or not.
Hi MM,
This is a very simple deal, there are multiple ways it could be done but probably the easiest would be with capitalized interest. There are a lot of lenders that won't fund a deal like this, mostly because you are not planning on having an ongoing debt, so it would not be profitable for a standard residential lender to provide funding. if you are upfront regarding the method of debt clearance and relatively short time frame of the loan, there are plenty of lenders who cater for such situations.
There isn't one, you have to go to the individual council. I think some of them may have that info available through their web sites.
