Forum Replies Created
Hi Frank,
I believe Matt is endeavouring to establish a group for like-minded investors to network, mentor, etc rather than as a finding service.
All the best Matt – it looks like you are taking a big bite and going to chew like crazy.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Wylie,
Sorry I cannot help with a referral to someone who can help with the feasibility stuff. Recommend you post a question in value adding or something different forum.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by Wylie:Perhaps someone needs to tell us to get the DA and onsell the block to avoid the hassles involved in actually building anything. I want to develop the block, but I don’t want to end up in the loony bin doing it, and it seems that going crazy or going broke are two definite possibilities.
Reading your post it would seem to me that the person you need to speak to is someone who has experience in small development feasibility studies. Someone of this experience will be able to crunch the numbers which in turn will help you make the decision that best suits you.
Since I was 15 I have helped paint, spruce up or renovate over 30 houses with my parents, then my husband. Renovating doesn’t phase me, it is just hot hard work. However, we have never built from scratch and I’m a bit nervous about where to start.
See previous comment
I thought a financial planner who knows property development and the risks could give us some direction.
I wonder if your quandary is partially caused by the fear of the unknown – and therefore crunching the various numbers will help you make a decision. For this reason I recommend you see someone with small development experience.
I read many posts and think we are real tortoises. We are in our mid 40’s and, considering I bought my first house about 25 years ago, I feel sometimes that our net worth just doesn’t reflect the amount of hard work and sweat we have put in over the years.
Just imagine how wealthy you would now be if you had rertained some/all of those 30 properties.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Wylie,
I am surprised that you feel the need to consult with an advisor.
Given the experience you have had in terms of property cycles I would have imagined that your would be well placed. I wonder what an advisor will add to your situation.
Do not imagine I am having a go at you it is just that I don’t see (reading your posts) a lack of direction or knowledge on your part.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Ring some of the furniture stores in the area that sell furniture in your intended price range and ask if they have a home decorator service.
You may find these stores will send suitably qualified people around and make some suggestions for you that suit your property, your budget and also the likely tenants. It is something we do for purchasing members in other cities – makes investing from a distance easier and less stressful.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by Carl.Alexander:This will put me into extreme dept but i believe that this area is about to explode from my research.
Hi Carl,
There is nothing wrong with your plans and all the best for them.
I have copied a comment you made in your original post that needs some thought on your part.
Yes – you will be taking on more debt. Yes – this can be daunting. Yes – you will need to meet the repayments.
But – this debt you are taking on is to purchase an appreciating asset and therefore is considerably more beneficial to you than debt for a depreciating asset. Bear in mind this debt will ADD to your net worth in one way or another and therefore needs to be considered a little differently to debt for a 911[bigeyes]
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi LW,
I am not a broker however if you leverage yourselves to the max you may be able to purchase another property. This onviously would be subject to serviceability tests too.
Whether or not this is the correct course of action is largely up to you.
Have you considered spending 12 months pouring as much as possible into your own home to reduce your non-deductible debt first. If you do this via an offset account it also means that you can acess the funds should your world go pear shaped at some stage in the future.
While this may not be in keeping with your long term goals the benefits of establishing a solid base are significant and should not be underestimated.
I guess you didn’t want an oldie to say you have got time on your side but I do believe that this is one of your greatest assets. So use this (time) wisely and you will increase your chances of long term success.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958HI Jordan,
In brief strata titling occurs when a large piece of green titled/freehold land is broken up into smaller pieces of land – typically this occurs when a large block is subdivided.
Sometimes the redevelopment may see adjoining blocks redeveloped as a single entity and then each unit having its own ‘piece of land’
Practically speaking this means each unit owner buys part of the whole block with the relevant portions of ownership being determined by the strata plan. This share is expressed in percentage terms.
Each owner is required to contribute their share of the costs of maintaining the common property (shared facilities – pool, drive way, BBQ areas etc that may be included in the development). The contributions are usually levied on a per share basis. There was a recent case which tested this on the Gold Coast where the lower unit owners were paying the same (on a per share basis) as owners in the upper levels even though the higher units were more valuable.
Depending upon the number of units in the strata complex there may (or may not) be a requirement for a strata management body to be formed which makes decisions about the maintenance and upkeep of common property. The strata management group is also responsible for insuring common property and ALL of the buildings.
Trust this helps
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Check out finance issues before you proceed to much further – you may find that this is a significant hurdle to overcome.
Not sure about this but it would be worth a quick phone call first.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Rob,
Not knowing a lot about the long term future of the mine at Ravensthorpe (driving distance to Hopetoun) I would suggest that BHP’s interest/involvement in Hopetoun will be directly linked to the mine life.
This quandry then leads to my next comment – $450/week in a mining town may be sustainable for a period of time. $450/week in Hopetoun is not sustainable for long term rentals. I wouls also be wary of over capitalising in a small/holiday community.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Noysee,
I cannot help with the technical stuff. However I do suggest you identify the ‘broken links’ so the techies know where to look.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Marty,
NSW threshold in 2006 is $352K – note the threshold relates to the combined value of land held and not on an individual property basis.
See http://www.osr.nsw.gov.au/pls/portal/docs/page/downloads/other/landtax_factsheet_2006.pdf
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Turtle,
No problems – just like to keep people focussed on the big picture.
Just remember you are a long way ahead of many others who are still going to do something one day.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by Turtle:struggling with the concept of freighting a couch to Kal!!!!
Kalgoorlie is a very large city and as such there are plenty of possibilities to purchase a couch in town. I don’t see a lot of benefit in freighting something in.
Focus on the big picture – let the small detail wash over you.
As an aside is a new couch going to get you a tenant? I would give serious consideration to informing the PM that a new couch will be ordered/purchased as soon as the incoming tenant indicates they want one.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958You got it Dazzling.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by Property WA:One thing I was wondering though is if there was a section where investment oppurtunities are posted? Developments, OTP, even people finding IP’s online and posting the link for opinion.
HI PWA,
Steve et al made a decision some time ago that this ‘service’ would not be included in the forum due to a whole raft of reasons.
Golly, we have enough people trying to flog stuff here as it is – no need for another section.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Try this networking opportunity.
https://www.propertyinvesting.com/forum/topic/21084.html
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi ASB,
The point you raise is why holiday lets (and the like) are problematic as investments. Sure they may have ‘good’ cashflow but as you have found out some lenders see them as a risky proposition and will either lower the maximum LVR or restrict release of equity.
You may find that a broker can assit and be abel to find you a more ‘friendly’ lender.
The scenario you allude to does occur and I am aware of situations when lenders initally lent at 80% and then reviewed their risk rating on the property and reduced the LVR allowed.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by leewizza:Also,
Any reccommended reading material would be greatly appreciated. On how to start our portfolio without haveing a cash injection and only $40k equity in our PPOR.Hi LW,
Recommend a read of stuff by Peter Spann and Jan Somers – while they are different perspectives on property investment there are different ways to make money out of property.
Sometimes a look at the other side of the fence is worthwhile.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Adam,
Someone I know has had some success advertsing in the relevant ‘to let/rent’ column in the weekend paper. He used to put a little ad in the classifieds.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
