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  • Profile photo of JohnJohn
    Participant
    @blackhat80
    Join Date: 2015
    Post Count: 6
    October 20, 2015 - 11:29 am

    I would speak to a solicitor who has experience in property transactions, joint ventures and also estate management. That way you are covered by all three aspects of the arrangement.

    Cheers

    Profile photo of JohnJohn
    Participant
    @blackhat80
    Join Date: 2015
    Post Count: 6
    October 15, 2015 - 11:28 am

    As Richard indicated, anything is possible.
    The issue will be the investor, and how you draft your Joint Venture Agreement. Speak to a good solicitor about a JVA, If you have a pre drafted one it may make finding an investor easier if you have a draft JVA which outlines the business plan.

    regards

    John

    Profile photo of JohnJohn
    Participant
    @blackhat80
    Join Date: 2015
    Post Count: 6
    October 13, 2015 - 10:22 pm

    Hi Steve,

    Glad your not after a silver bullet, because there is no such thing lol.

    I suppose my first question is why Adelaide? From what I am reading, most observers expect a 4 to 7% drop in Adelaide property values over the next 2 yrs or so, (below is a link to one of many articles I have read ref this). I suppose it is dependent on what your strategy is, for me it was all about achieving the best growth, so depending on the time, and where different markets are in their cycle drove where I purchased. My emphasis was to maximise my growth in a property in the first 3 to 4 years to allow me the equity to go again.

    http://www.news.com.au/finance/real-estate/bis-shrapnel-report-reveals-property-prices-to-fall/story-fncq3era-1227416605503

    I would consider all locations, not just where you live.

    Regards

    John

    • This reply was modified 9 years, 1 month ago by Profile photo of John John.
    Profile photo of JohnJohn
    Participant
    @blackhat80
    Join Date: 2015
    Post Count: 6
    October 13, 2015 - 9:46 pm

    I am not an expert in these things but how about this:

    1. If the Block is Valued at $700K and there are you and three other brothers who in the event of your Dads passing I assume that it would be split 4 ways, so $175K each. So your share of the block would be $175K and the other siblings $525K.

    2. Assuming the value of the property after the build would be $700K + $350K (added by you)= $1.05m. Then the sibbling component after the build would still be $525K as you have added value with the build and their share is the unimproved value. $525K is 50% of the total value once built.

    So if your father added you to the title as “tenancy in common” with a 50 % share of the home, then if he was to pass away, his estate would administrate his share of the property which would go to the three brothers. This allows for growth in value and for the brothers to share in that growth. your father can have his will articulate how his shares would be distributed allowing protection for your family allowing you to pay them out from your portion of your inheritance from the other two blocks.

    I would think that the bank would only require your Dad to go guarantor on the loan as he is on the title, but the loan would be in your name,

    Additionally, there can be a caveat on the tittle not allowing the sale while your family lives on the property (but some banks may have an issue with it) .

    Just an idea, as I said I haven’t come across this before but its an idea that provides the brothers security and your father,

    Profile photo of JohnJohn
    Participant
    @blackhat80
    Join Date: 2015
    Post Count: 6
    October 12, 2015 - 3:49 pm

    I had the same issue with family and friends when I started 15 yrs ago, I put it down to culture and their education. The Aussie way is to buy your house and work hard to pay your mortgage off and that’s about it with some shares on the side. I think its the idea of debt which scares people. If I had ever listened to friends and family, I would have probably only paid off 60% of my mortgage in the last 15 yrs and I would be sweating worrying if my superannuation would cut it when I retire, instead I have no mortgage, ten investment properties (two within a SMSF) and no concerns about if and when I can retire.

    If they don’t support you, that’s fine, go to the seminars, learn as much as you can and surround yourself with like minded people and never stop learning.

    Profile photo of JohnJohn
    Participant
    @blackhat80
    Join Date: 2015
    Post Count: 6
    October 12, 2015 - 3:24 pm

    Im thinking 50 basis points lower in 12 months, not that it will all be passed on, especially to investors.

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