From what i have i come to know through various posts here its nearly impossible to get the covenants removed.

Although the blocks are adjoining and they will be perfectly suitable for a unit development but i doubt this due to the covenants.

Thanks for your input everybody !

Thanks Yack…
But do you think even 1st Jan 2004 Council valuation would also be irrelevant as in case of my property the Council has increased the site value by almost 40%.

Cheers

Thanks for your reply.

The covenant was created by the Developer and was put on all the blocks of the land in the estate which was released last year.

I would need to consult the council in order to get the planning permit.

I guess i just want to know if i have a reasonable chance of getting this covenant removed.

Cheers.

Thanks alot TerryW and Michael for your responses.

Regarding ur suggestions for selling the land, i did consider doing it but my reasons for not doing it is because 1) Iam renting at the moment and would like to build on that land as my PPOR, also 2) The place has shown good appreciation from 135K to 220K in 6 months and land is running out there.
Thirdly i can use the 2 block of land to build another house which would basically serve as my 2nd IP and being new would also give me Depreciation benefits.

Iam at the moment earning 60+ so the tax benefits also attrcat me to an extent though they are not my primary focus.

I would welcome your thoughts on my above strategy and as such iam not very fixed on future plan of action and would definately consider something more beneficial.

Now back to my original questions regarding the structure of the loan.
The reason i dont want to draw down on my equity of land and pay towards thge IP is due to the tax benefits. As i dont get any tax benefits on my land loans i want to get rid of them asap and on other hand have a 110% on my IP house as that makes it negatiuvely geared and gives me tax benefits.

Second question regarding fixing of the loan i would like to know what if i my IP house is on fixed rate loan and it goes up in value. In this if i want to borrow against it would this be considered breaking the loan and would need to pay breaking fee. If this is the case then i could probably keep the loan variable as that would give me mor eflexibility and also i dont see rates going significantly up over the next year. I can probably fix a portion of it in an years time.

I will be interested on your thoughts on above.

Also in regards to the insurance iam thinking on going for a comprehensive package with CGU which includes Building,Legal liability, Default Rent, Loss of rent, Damage by tenant.this is costing me around $500p.a. Is it benefcial to go thru the Insurance broker???

thanks,

-D-

Thanks AD for the advice, I will go with it. The settlement issue was really unknown to me and would be helpful.

Thanks again.

-D-