Forum Replies Created
Anyone who thinks they know whats happening with the political landscape is kidding themselves. Overall you cant control or influence what happens at senior political level, and what you think you know is probably far far removed from the real conversations that are had. Hell, half of the people IN senior political positions have different information from reality.
I think you can only control your destiny, and follow your beliefs and opinions on what will happen in the future. Some will have the opinion that everything is going to crash, some see opportunities within this market currently. Thats what makes it a market !!
I personally don’t believe the property market is going anywhere anytime soon. it will consolidate or grow at around CPI for the next couple of years. Yes, this is a generalisation, some cities and suburbs within cities will get smashed, most likely those with a majority of low income in their demographic.
But we need to remember there are a hell of a lot of houses in Australia paid off in full. these people are highly unlikely to sell, and if they do, they will buy in the same market so its all relative.
I am a big believer of doing the opposite what the herd is doing – we all can probably remember the stories of cab drivers talking about the latest stock market tip – when was that exactly – oh yeah, the 12 months before the GFC hit. Likewise when there were 100+ people at each auction in 2007, i certainly wasnt out there with them.
I dont see too many people talking about the fact that property has been the most stable investment over the course of history and with one of the highest rate of returns.
Sure, history isnt a predictor of future, but when someone else can pay my mortgage off for me so that i have 60, 80, 100k of passive income (+ growth with inflation over time) im willing to take that bet.
Oh yeah, lets not forget the CHANCE of capital growth as well!.
To me, constantly investing for the future just makes sense, and if you’re investing for the long term future, the market’s cycles dont matter as much as the time you spend in the market…
Just my 2c
Hi Tiggie
you are in a pretty good position with this property. Start with the end in mind – so your goal is to invest in property and build equity right?You have quite a lot of equity in the home which affords you flexibility. Given you can buy a unit for $225k, what i would suggest is your first option.
Buy a new unit for $225k with some of the equity/savings as the deposit. Move into the unit and rent out the house, as the house is +ve geared so will be paying off your loan for you, while your mortgage on the $225k will be about $250 a week. I wouldn’t spend the money on the bathroom and rather put than into your deposit, as i think the money would be better used in buying the new unit.
Selling is the worst thing you could do with your goal in mind, i reckon the stamp duty implications of the sell/buy will be far more expensive than what property will drop.
Sure property has come off the boil but its not doom and gloom. There will be buying support with each increment it drops. Only approx 1/3 of homes are under a mortgage. 2/3 of the population are either renting or own their home outright so these people will simply do nothing, and the renters may start to become buyers if rates drop more.
I have already seen it – a relatively small real estate agent in my area was quiet as up until about May, and since have sold about 20-25 homes from may to now as the more affordable and less competitive market is bringing some buyers back out.
Please dont take this as financial advice, its just my opinion and what i would likely do in your situation.
There is no CGT applicable on the new property (your current PPOR in 10 years’ time). As you say, it is not an investment property and is your current PPOR and therefore no CGT is payable.
I have done something in a very similar situation to yourself but over a 3 year period, from initial purchase to completed development.
These sorts of Dual Occs are in heavy favour due to the tax benefits vs other development projects, however only if you are willing to live through the development i guess.
About 2k including title reestablishment which should be done at the same time, as if you are subdividing you will need the reestablishment of title down the track anyway.
Id question what you are getting for 900, will they do a general neighbourhood survey, services details etc
Where are you based – i can put you on to some people in Melbourne if interested
Cheers,
HarryHi jsco99,
I have recently been through a dual occ planning permit process with my architect and can strongly recommend them.
Company is Petridis architects in Ivanhoe. I am in the process of getting working drawings done for the building permit and they have been excellent to deal with througout, especially their responses to council queries/concerns with the development etc.
Good luck with it, its a long process but well worth it!
Harry
jcso99 wrote:Hi all,
I am looking to develop 4 unit townhouses in Bayswater. My initial thought is to engage a draftsman/architect who would help me with drawing up initial plans to secure the town planning permit. Once that is done, the same draftsman/architect will get the detailed construction drawings and other necessary documentation to obtain the building permit. Once that is done, will engage a builder to start the construction and engage a contract administrator to oversee the builder on regular basis.
Would appreciate your feedback on my thoughts. Secondly, would love to know whether anybody would be able to recommend a reliable draftsman/architect during the planning permit stage and recommend a reliable builder and contract administrator during construction stage?
Looking forward to hear from you soon.
Cheers
John So
