Hi Nick,

Call your council and ask them if the block is able to be sub divided. They will tell you if there are any overlays, minimum block sizes, height restrictions.

Get an architect or google some of the development companies (such as the ones on this forum) and give them the address and get their opinion on what can go there.

You may have a 1200 size block but there may be a sewerage easement at the back which means you can't build on that piece. There may be a setback of 10 meters from the front of the block, can't build there. Then there may be an environmental overlay which means the council may want you to keep the existing tree in the side, can't build there. These are all things you can find out quickly so you can make a decision.  

A couple of other things to talk over with your accountant is if you will be selling or keeping the units as you will need to purchase and sell in the right entity (trust, Co, etc)

If you do a search on the forum you will find many previous posts regarding costs, time frame, etc.

Good luck it is a lot of fun. The only problem is when you are done and can't find the next block (that will make a decent profit!!!)

D

Hi aaabbbccc,

A lot of Chinese are investing here. That would make me think that the options are better here. What have you seen that makes you want to get into that market? Just curious

D

Hey Terry,

Wanna see me eat my hat? I have to say I have spent some money on repairs (oh shush!) I am using this property as a speculative property to see if I can still make a good capital gain. I will wait probably about 18 mths –  2 yrs and then flog it off after the free way is built. The freeway is about halfway there at the moment so we will see. I will keep posting on this regarding my HUGE capital gain or my HUGE hat eating adventure!

D

Very sad.

But it sounds that the owner did have either prior knowledge of the fact that there was a hazard. " Mr Dick was evasively defensive in answering the questions of the investigating police and the investigating Workcover inspectors" "
I found Mr Dick’s references to Mr Harley not being authorised by him to remove the redundant hot water system to be gratuitous, self-serving and unconvincing in the context that he had left it to Mr Harley to scope the work required to fix the leak. I consider Mr Dick’s evidence in this regard to have been put forward in order to deflect criticisms directed at him, knowing his evidence in this regard could not be contradicted."

I think this really highlights the issue of making sure that you know to the best of your ability about any hazards on your property. If you have prior knowledge of anything that may cause injury to a person on your property then it needs to be fixed. Also having everything in writing in case there is a problem.

Very sad and it has opened my eyes.

D

Sounds good! The wording makes it sound nice and big. Fingers crossed for you!

D

Anyone wanna rent mine? LOL!!!!! Nah kidding I think we are done! Please ignore hideously fugly letter boxes the builder put in they are now nice concrete ones (phew).

http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=404391324&f=10&p=10&t=ren&ty=&fmt=&header=&cc=&c=64734430&s=vic&tm=1268201661

D

In some areas the council will allow 10-15, 1 and 2 bed apts with underground car parking. The block can look like a string of townhouses joined together from the outside but will contain apts. it is a matter of asking the council where you are and finding out if they are interested in blocks like that being built. The only problem if the planning is approved is then going with commercial finance which is harder to obtain and costs more. Near unis etc this is getting pretty popular.

D

Nothing wrong with having a balanced portfolio. Do you think SM has never opted for something that will grow at the same time as being good cash flow? I personally have no problems making equity/profit to fund more properties.

D

Lol! We suspect that my son actually creates his own sand.

We used Gravity Demolition. They are in eastern Suburbs but they are cheap and quick. They came in the cheapest out of the 6 odd quotes we got (nobody calls you back then they all do!) The quotes we got ranged from around 10k up to 15k. Ours was a double story wood and mud brick owner builder house. (Pit toilet included!) The told us they couldn't salvage the windows because they were holding the place up lol!

D

I found some under 250k that, granted, were Western suburb Syd, but it is all about doing your research and finding real deals not just opting for things that look easy. How often does the hotel need repairs or refurbishment? Do you need to pay for those? How often is that particular room let? What is the occupancy rate of the hotel? When you have all the answers you possibly can get then you are able to make the right decision for your investing future. If you want to buy it, can get finance for it and it is the best deal you could possibly buy then get it.

D