Forum Replies Created
Hi James,
As a smaller, no fuss investment I have always been interested in car parks. I haven't bought one (although I am looking) so I can't give any direct feedback, but it seems to me that they yield well, show appreciation and are simple to manage.
Having to use them in Melbourne, they also seem to be in high demand! It may be worth considering. It's a good hands on education as you are buying titled property with all that goes along with that, and they are fairly liquid.
All the best in your endeavours whatever they may be!
Hi Sandra,
Thanks for your kind comments.
You're right about the continuity issues, it's tough when they chop and change points of contact, and I guess this is where the process needs to be more rigid. If the process is clear, and you stick to the communication protocol it shouldn't matter (at least in theory!) if the planners are interchanged along the way.
Municipal town planners can tend to talk in abstracts – like mass, density and scale – so you're approach of trying to quantify the requirements is, in my opinion, the right approach.
And, should you do it all again, we would look forward to the opportunity of working with you!
Christian.
I have been finding the issue is mainly one of semantics. In taking the deal to the financier, there is a definite shift in attitudes depending on whether the proposal is intended as an investment, or a development.
I'm not kidding here.
My own banker has said yes to an investment loan, and no to a development loan, for the same project. This seems to be an issue of risk profiling and exposure appetite for the banks. In plain terms there is money to lend for investing, but not for developing. This simple edict seems to find its way from the bank's strategy, right down to the bankers writing the business.
I agree with Amanda, it's easier to say $3,380 than it is to earn it!
It seems to me that your proposal would not materially affect your employer.
You can legally enter into a contract to purchase with a longish settlement, as you have proposed, with the condition that you may carry out improvements to the property as agreed with the vendor.
It's not a simple contract, but sounds like it may be worthwhile.
Good luck.
It is my understanding that one can legally build two dwellings on a single title, and do with the second dwelling as you please.
However, there is a need to get town planning approval for the building of a second dwelling.Generally speaking, it has been my experience that people going to the trouble of getting a TPP for a second dwelling will also follow on to the issuing of new titles as a subdivision.
The short answer is yes, 600m2 will accommodate three townhouses.
But of course there are a whole lot of reasons this may not happen, as others have pointed out.In every municipality there are different zones and overlays that help to determine the preferred density, dwelling types and dwelling diversity for the area.
A proposal for three townhouses on 600m2 would generally be considered high density in a suburban context (probably too high) but in an urban context would be deemed quite reasonable.
So to understand if what you are proposing is achievable you need to first understand the planning strategy for the area.
Consider putting the funds you have into a TD, with the lender you are likely to use for finance, for say 60 – 90 days while you do your research on properties (perhaps more than one as Propertunity suggests!) and then when you are ready, the funds have some "provenance" with the lender, that is to say, the funds came from the TD.
In my experience, the best town planning outcomes have been achieved by taking a cooperative and inclusive approach with council. The best method for doing this, in my opinion, is to work from concepts to final application – over a period of weeks – and taking minutes from each subsequent meeting. These minutes can then be shared with the planning department so that any meaningful decisions are recorded and agreed.
In this way, when the final application is made all of the design decisions have been discussed and agreed. It is very difficult (I would suggest impossible) for the planning department to then do a back flip because there is an information trail that shows your intentions and the cooperative approach you have taken. Without putting too fine a point on it, this information trail would also be very damning if it became a tribunal issue.
This approach has ensured a 100% success rate for me with town planning applications.
Mav,
The combination of hipped and gabled roof, along with the proportions, suggest the is what's called "between the wars" style.
These places are interesting I think because they often combine late "period" styles (with lees ornamentation) but also point to what was to come in the 1950s and 1960s when housing boomed and the blond brick veneer was introduced.I believe these houses are comfortable and well proportioned and provide an opportunity to renovate without having to stick to a particular regimented style – and not be accosted by the style police!
I hope the following advice is received as intended.
If you need a planning outcome, then find a planner, architect or designer who can get the DA/TPP you require.
A good one will be able to help you manage the relationship with your builder as well.Hope it works out.
Pascoe,
The sums should (IMHO) always be current, and furthermore there should be some contingency allowed.
And yes, the timeline is rubbery!There arre plenty of good deals around, and my suggestion is that you determine your goals and establish a plan to make these happen. If you can establish the fundamentals, then you can test and re-test these as a research tool.
As for margins, 20% is sound, 30% is a "professional" margin, and more than that may well be too good to be true!
Interestingly, these margins are also useful in banking (there are others on this forum that can tell us more) where it has been my experience that retail bankers look for 20%+ on small developments, and commercial bankers are looking at 30% for larger projects (and pre-sales or excellent security).Hi Bobba,
I've come across many different variations on this theme, and the permutations are many and complex, and I'm sure the deals could also be profitable. There are many "what ifs" and "sunsets" that need to be built into these sort of arrangements.
I would, however, make one suggestion. Have you thought about turning around the sourcing aspect and trying to attract land owners that may be of a mind to enter into this sort of arrangement? Perhaps there are people out there who are looking for someone to "facilitate" this sort of deal and share the rewards?
I commend the initiative and wish you good luck.
Hi Pascoe,
If you are looking to enter into a property development, either for long term investment or short term profit, you need to do your research. I haven't heard anything particularly negative about Metropole, and they are certainly well known.
Having a plan for your prospective project – right from the outset – and understanding what is involved in the process is vitally important. There are a lot of elements that have to come together (in the right order) for the process to work efficiently and so for your project to generate the profits you are aiming for.
The first step is understanding what sort of development you would like to undertake, as this will determine many of inputs around cost, complexity and risk. From there the right property needs to be found and the process of conceptualising, making application for development and subdivision, putting together the project documentation, and then having the development built and either sold or tenanted (or maybe a mixture of both) is undertaken.
Developing property is not without risk, but the right structure, aligned with the right project, and the right delivery team, can make it rewarding. The rewards are not only financial, a development project can also be involving and engaging.
Best of luck with your research.
Hi Marie,
Covenants, mortgages, caveats and other encumbrances can be found on the property title.
If a property is for sale, the title should be in the contract documents.
Otherwise you can carry out a title search.Hope that helps.
Christian.
The mesh, I believe, is fibreglass. It's quite a brad weave and acts as a reiforcing agent. A phone call to a render supplier should have you on the right track.
If you're looking in say the middle suburbs a good starting point (but by no means a certainty) is 1:300m2, so you should expect a 900m2 allotment to yield three dwellings. However, there are many different outcomes and it may pay to seek the advice of a planning consultant before you purchase.
The suitability of a property for the purposes of subdivision rests on a few major considerations:
- The size in the context of the planning scheme.
- The zoning of the property and any special overlays.
- The proximity to transport, schools and other amenities.
- Knowing who has the deals. Agents settle a lot of these "off market".
A many minor considerations, including:
- The cost of land and its subsequent value after subdivision.
- The design constraints of the site.
- The presence or otherwise of any covenants or encumbrances.
- The topographical and geotechnical constraints.
Hope this helps, and good luck with your search.
Research!
Houses cost a lot of money, they are a serious investment. I've seen people put more effort into buying a car than a house.
So my advice is to hit the streets in an area you like and see what's out there, and to also do some research on the costs involved in value adding – from simple cosmetic work, to renovations/additions, to subdivisions.
Good luck.Tell them exactly what you have told us.
Allow around $1,500 – $2,000/m2 for additions. A bedroom might be say 4m x 3m = 12m2 = say $24,000.
A toilet will cost far less than $30,000!
