If you need an invoice or receipt then you will need to consider the name and address carefully on your card. To make my accountant happy I generally give out a card with the name of the entity that I need to be invoiced. Normally I don’t use the trustee name on the business card. I like the idea of a trading name for the trust. I have 3…[Read more]

I agree when you are taking these risks get as much as you can.

“Greed is Good”!

As someone who is just starting out, can I ask how do you get development sites, when the general public, not to mention RE Agents, also know of the oft-quoted 20% margins developers expect, and price their properties accordingly?

Thanks

Beauty is in the Detail

Like most things in Real Estate, what a developer will pay is what the current market will bear.

With the DA in place, the Developer will probably reduce the often quoted 20% margin, he will require.

I’ve heard that as the risk is reduced with a DA in place, as low as a 15% return may be acceptable – depending on other factors, including current…[Read more]

G’day all,

Great discusson.

$730 per sq m! Wow, haven’t seen costs this low in Sydney since my grandfather was building – well almost!

Sailesh, do you have any ‘tricks of the trade’ which you would like to share with us?
-innovative building techniques/materials
-negotiating techniques
-etc

Regards
archiZEN

Hi everyone,

Many thanks to you all especially Mel. Will take your advice onboard and let you know how everything works out.

regards
archiZEN

Hi Richard,

Many thanks I will give him a call.

Cheers & Ciao,
archiZEN

Sorry Kaloni,
I think you probably mean $10000 to $11000 per Square (= 9.29 square metres)
OR
$1000 to $110 per square metre.

Regards
ArchiZEN

Hi Actube

Just saw your post.

The construction cost ultimately depend on your location and how busy builders are in that area (being in demand = greater profit margin).

Rawlinson is a great source for costing.

In a development workshop I attended earlier this month, we were told, as a very rough rule of thumb (probably for Melbourne), to…[Read more]

Hi all,

Just like to thank everybody who responded. Great advice and much appreciated. I’m seeing a mortgage broker this week and I’ll let you know the results.

I may put the items which weren’t answered on a separate topic in the future sometime.

Thanks again.

Regards
ArchiZEN

Hi Sooshie, Leigh and Rod,

I’m just in the process of applying for LOC (or possibly Off-Set account?). I’m with the CBA so I’ll probably apply through them.

Would you revealing who your LOC is with and whether you would recommend them.

Should I be asking them any questions in particular and what fees are negotiable?

Thanks

ArchiZEN

Thanks Tas Investor and Scott,

If they are cheaper it seems as though an Offset account is the way to go.

A few questions on off-set accounts :

Do you draw on the Banks money, similar to LOCs, or is it your savings in this account?

Presumably they are at a lower interest rate, but can you get a fixed rate loan (not possible, according to CBA…[Read more]

Thanks Stuart & Rolf,

How does an Offset Account work? Do you use the redraw facility? If so I’m in a position where I need to kick start my investing by borowing the deposit (from LOC?).

I’ve also noticed low-doc loans mentioned in other posts. What are the advantages of these?

Finally, when I negotiate for the loan (incl LOC?) what things…[Read more]

I agree this site is the best thing on the Web, IMHO.

Also, better than ‘The Block’ – without the drama!!

ArchiZEN

Regina,

Great advice, thanks.

We were hoping to put all our wages and rentals into the LOC to obviously pay down our Home Loan (the CBA has advised that Veridian LOC accnt has to be a variable interest rate).

I notice that the CBA offers up to 10 accounts within the Veridan LOC. Has anyone set up separate sub-accounts within the LOC for say,…[Read more]

I’m no expert, so seek professional advise, but I believe that if you have your own DIY Super Fund, it can purchase IPs so long as they are unencumbered, that is no loan over them.

ArchiZEN

Thanks Regina, Del and Wil,

It’s great that you guys give so much time and expertise to those who are starting out on the Investing journey. I. as I’m sure others do, appreciate it greatly.

I’ve taken that on board regarding ONLY using IP as security.

Regina, you mentioned cross-collaterisation. What is it?

We are also with the CBA. I also…[Read more]

Thanks Harold & Stuart,

So we should use the Investment Property as security NOT our home. OK

Do we fund the 20% investment property deposits with our money? Even with + cash flow it will take some time to accumulate sufficient funds.

Or, constantly using LOC would soon evaporate that facility.

The Banks point was that if we use our home as…[Read more]