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  • Profile photo of EdmundStEdmundSt
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    @edmundst
    Join Date: 2010
    Post Count: 28
    March 26, 2014 - 5:06 am

    This is correct. The main purpose of my original post was to confirm whether the estimation on building cost i received via email was close to the mark. I have done the same maths and more as you have pointed out and wanted to confirm if I am wasting my energy…

     

    Profile photo of EdmundStEdmundSt
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    @edmundst
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    Post Count: 28
    March 26, 2014 - 4:38 am

    the block is 692m2. Current rough plans are to build 2x ~340m2 townhouses. After already speaking to the town planner, the front townhouse will be approved for double story 3BR. Back town house is only single story and will be 2-3BR.

    Have spoken to council and calculated all plans and permit costings. 

    New 3BR townhouses in the area are selling between $360-410k. Existing property currently for sale is worth between $280-290k

    Thanks for the heads up

    Profile photo of EdmundStEdmundSt
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    @edmundst
    Join Date: 2010
    Post Count: 28
    October 14, 2012 - 3:49 am

    Thanks for the response. 

    Mortgage insurance from my understanding would be added on to the principle and therefore increase holding cost by roughly $500 for the 6 weeks?

    the median house price for the suburb is $850k so I am using hopefully worst case figures. 

    If the property does not sell then that would be the joys of property investing. 

    Profile photo of EdmundStEdmundSt
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    @edmundst
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    October 13, 2012 - 7:57 pm

    Thanks jacM. 

    So iI then deduct my deposit of 35,000, I am left with a net loss of -$12,855.50?

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    @edmundst
    Join Date: 2010
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    September 21, 2011 - 10:27 pm

    Thanks Jamie and Kaylah.

    My Strategy is definitely cash flow.

    Profile photo of EdmundStEdmundSt
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    @edmundst
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    May 4, 2011 - 12:58 pm

    Thanks for the responses.

    It is 1 of 4 units

    Profile photo of EdmundStEdmundSt
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    @edmundst
    Join Date: 2010
    Post Count: 28
    May 4, 2011 - 9:52 am
    Scott No Mates wrote:
    hmmm, sorry to break the news but restumping won't solve a rising damp issue. Just because you didn't get a building inspection doesn't stop you getting one now to get a scope of work & to quantify your costs. If the ip is a unit, why aren't the rectification costs to be borne by body corporate from the sinking fund/special levies? You don't own anything outside of your walls/floor/ceiling but the liability may extend to inside your property if the cause is external. If you have rising damp, you would have dampcourse or flashing issues

    The Unit began to shift / crack 18 months ago. Unfortunately we could not claim this via builders insurance as according to the local council, the house was built back in 1967 and was subdivided in 2007. So the builder has done all the renovations without council permits etc.  A structural engineer came out to the unit 12months ago and instructed a camera be placed down the plumbing (came out of bodycorp). This highlighted cracks in the pipes causing leaking which made the ground damp. The unit(s) have not shifted anymore since this has happened. Recently, after getting a handyman in to replace cornuses and fill in other cracks, the paint on the wall directly behind the shower head had started to crumble off. He got his professional mate in who confirmed it was most likely rising damp. I have been informed that costing to fix rising damp will be $5000 and if the place continues to shift in the next 12months, leveling the stumps will cost up to $10,000.

    Profile photo of EdmundStEdmundSt
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    @edmundst
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    March 1, 2011 - 10:04 am
    storrma wrote:
    Hi
    Im keen on US property as well  .Im off to "myusaproperty" meeting  on Monday for a bit of fact finding
    Id be keen to chat with other like minded investors im in Ivanhoe Melb (not far from hawthorn) 

    How did you meeting go? What are your thoughts on myusaproperty?

    Profile photo of EdmundStEdmundSt
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    @edmundst
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    February 9, 2011 - 4:49 am

    Paying with cash for 1st property.

    I would rather spend $1500 on flights / accom and personally head over to the US and talk to banks about the possibility of getting a loan than paying a $4400 fee

    Profile photo of EdmundStEdmundSt
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    @edmundst
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    February 7, 2011 - 10:52 pm

    I looked at LoansUSA. The $4400 fee (for non MyUSA costumers) was too high for my liking. If purchasing in the lower price range <$50,000, all of these add on fees just decrease my profits and defeats the purpose of purchasing in USA.

    Profile photo of EdmundStEdmundSt
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    @edmundst
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    January 14, 2011 - 11:35 pm

    Using LoansUSA suits those who do not have the excess cash or available equity to purchase a portfolio. Personally, my cash / available equity has capped my spending between $100,000 – $150,000. With this being the case, a decision I have to make is to purchase either
    A) via a lender to maximise the # of IP i can purchase 
    or 
    B) purchase properties using cash and cap the number of purchases to 2-3 (depending on purchase price)

    Advantages of using option A is that i can build my portfolio quicker. Disadvantage is paying interest which ultimately inhibits cash flow and decreases net profit which ultimately makes investing offshore a less attractive thought than originally thought.

    Advantages of using option B is that I maximise net cash flow. Disadvantage is that I am limited to the number of properties I can purchase.

    However, Using option B to maximise net returns over a 12month period will provide sufficient funding to act as a deposit to then purchase via a lender.

    What are people thoughts on this? Remember – not everyone is in the position to access a pitfall of cash reserves / equity to not worry about the need of using a lender.

    Melbourne Girl – Does LoansUSA allow you to use equity and leverage for future purchases – similar to investing in Aust? and what was your LVR?

    Profile photo of EdmundStEdmundSt
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    @edmundst
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    Post Count: 28
    January 14, 2011 - 2:33 am

    Melbourne Girl – May i ask what interest rate LoansUSA offered you and what the purchase price was?

    Profile photo of EdmundStEdmundSt
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    @edmundst
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    Post Count: 28
    January 13, 2011 - 11:00 pm
    melbourne girl wrote:
    Also, Melinda at Loans USA has mentioned to us a number of times now that she has to build a great picture of us here in Australia because they have arrangements with banks that they dont have to have a US credit rating. We have given financials, bank statements and even had a credit file done on us.

    I would call her, she is really happy to chat about what is required.  Stephen her boss is really knowlegable. Its hard to get through to him as he seems to be in high demand. their office will find out what you need to know.

    I just got off the phone with Melinda – very upfront and informative. I am in the process of setting up finance to purchase within 2 months. I am not going through myUSAproperty.

    Profile photo of EdmundStEdmundSt
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    @edmundst
    Join Date: 2010
    Post Count: 28
    January 12, 2011 - 10:49 am
    Jamie M wrote:
    Hi Lulu

    I recently read Margaret Lomas's book "20 must ask questions" – she has developed some great criteria for identifiying potential growth areas. I think it was only $20 from Big W – a bit cheaper than $2k!

    Cheers

    Jamie

    Could not recommend this book highly enough. Great source of information that has helped over the years.

    Profile photo of EdmundStEdmundSt
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    @edmundst
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    December 13, 2010 - 1:08 am
    simon87 wrote:
    I work in Hawthorn so anywhere around here is great.

    Would been keen to hear your experiences Nigel as long as you dont try and sell me a gold membership. Haha. Only joking.

    Im at work Mon-Sat so anyday and time is good for me.

    How does Thur lunch on Glenferrie Rd, hawthorn sound?

    Profile photo of EdmundStEdmundSt
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    @edmundst
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    December 10, 2010 - 7:17 am
    NHG wrote:
    I'm kinda roaming at the moment,

    but am free after the 24th of Dec. I know it's a bit far (and into the hols) but would love to meet up and discuss all that is property.

    sounds good NHG – be sure to msg me and we can organise a catch up anytime from Jan 3

    Profile photo of EdmundStEdmundSt
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    @edmundst
    Join Date: 2010
    Post Count: 28
    December 9, 2010 - 7:26 am

    Hey guys,

    I live in Hawthorn.

    Send me a PM on what days / times best suit for a catch up and we'll take it from there. Maybe we can organise a group catch up.

    Nigel, from your background and experience, it would be good to hear your thoughts on the topic.

    Cheers

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