Sounds like you might need an equity partner of some sort. There are private investors who will lend under these circumstances (like mezzanine funders in the good old days!) but want a good return and security through a caveatable interest or second mortgage.

Your neighbour may even be interested in a JV of some sort which would allow you to share the risks and profits.

I have rarely purchased a property with more than a five percent deposit on the day. Simply ask the agent if every-one's happy with that. In the end it really makes little difference to the vendor unless they are looking for a S27.

Hi Aureus,It's a big commitment but what you are proposing is not unreasonable. You need a strategy and a plan (although it seems you are pretty close) before you can answer the questions in detail, however, here is some food for thought:An investor who is looking to develop for the first time shouldn't take too much risk, so a margin of 20% is a…[Read more]

Historical retail average is around 7.5%, which is also where the Fed has stated they'd like it. Some suggest that anything below the historical average is worth fixing. In my opinion it's not that simple.

mpave1 wrote:
hi well that im thinking maybe 4 or 5 town two storey town houses ,after i pull down exsisting house ,down the street there are twenty two, two storey town houses on one block. im in the middle of finding a surveyor to give me an idea of my choices or do i get some one else builder ect the councel says use a surveyorthe house we…[Read more]

Toyah wrote:
Hiwe have good equity in some properties but not much in cash but I am wondering if we can do anything to increase our wealth.The equity is approx $750000 on property worth approx $1,100,000but one of the properties is in NZ (I have converted to AUD for the above figures but no doubt it is worthless to us in Australia for the…[Read more]

mpave1 wrote:
thanks but what does strata title mean .and do you know how these projects are financed as i said we have our own home which is the one we are talking about pulling down and our investment property the idea of building units appeals to me cheers maws

Hello Maws,1. A strata title (in Victoria) generally means a "title in section"…[Read more]

arms wrote:
advice needed ,i have a ppor on a block of land i also own the block of land beside me ,these are on seperate titles but i have amalgamated both for rates reduction ,i also have 2 investment properties one i owe $142,000 (rental is $270 per week) and is valued at $265,000 the other i owe $192,000 (rental is $260 per week)and is…[Read more]

Simply by doing 8 at a time you should be able to negotiate pretty substantial discounts using "normal" suppliers. If you are reasonably fastidious in documenting your requirements it's a simple matter of faxing/emailing as many suppliers as need be and entering into a little competition.

Hi Maws,Welcome to the forum.There are a lot of considerations in answering what seems like a simple question!Firstly, the requirements for subdivision vary from state to state and council to council.Broadly speaking, if the covenant can be removed or otherwise overcome, there is nothing to stop you subdividing the land and selling a part of the…[Read more]

Thanks Paul, you've piqued my curiosity. Where are you based?

Sounds like it's not too tough then. What you need to do is ascertain if the documentation is in order. Is there a current building permit, and if so what needs to be done to get a certificate of completion? Is there warranty insurance – you'll need this to be able to settle the property simply? From what you have said it seems that the…[Read more]

All this talk about subdividing has got me thinking back to the theme of the thread: "subdividing basics". I spend a lot of time talking to people about these basics, and some things keep coming up again and again. I've attempted to answer some of these below, in the hope that it might also benefit people who want to understand the basics. The…[Read more]

There may be an easier way, but I'm not aware of it.Getting 12 hours out of each day means just that.Having said that, I believe the best thing you can do is plan and budget properly.If you have a plan before you, you have the ability to pre-book trades to suit their timing more so than yours. This will be reflected in the prices the quote for the…[Read more]

Have a plan.Have a budget.Have a timeline.Have a sense of your own capabilities.Have fun!

Not sure if IKEA is in Perth, but I just installed a new IKEA kitchen and other cabinets and they were simple to put together and look the goods too.

Hi Tim,There are plenty of these partially completed projects around (especially post GFC) and although they may seem compelling, there are a lot of complications. As well as the works to be completed there are also warranty issues, insurance, planning, and building control issues to attend to. The documentation can be expensive and time…[Read more]

Hi GOM,No, we don't yet provide dedicated services in NSW, only special projects, but we are working on it.You are quite right, the issues is usually about where you start, and what is the process. There is always a process, and it's sometimes complicated. The bottom line is that in these sort of cases there's a problem that needs a solution, and…[Read more]

Perhaps have a look at this from an investment position. Generally speaking, these sort of problems can be solved by way of not affecting the current amenity (that is to say the dwelling already exists) as long as you have the cash to solve the problem. Let's say that it costs $20,000 to solve the problem – this represents a solid return…[Read more]