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I’m not a broker or anything but based on those figures you’d have a tough time even getting the time of day from a bank, let alone any money.
$90 000 a year is an absolute pittance, how do you guys eat?Hi Lee,
I moved from Melb to Sydney (Mosman), back to Melb (Mornington Peninsula- home town), then to Brisbane (Mt Gravatt East), back to Melb and on Tuesday I’m going back to Brisbane. From there I’ll eventually go to the Gold Coast or back to Sydney (not Mosman). I like Sydney the best. It’s great fun moving interstate and starting anew, especially when you sell one house in one state and the money received can buy you 2 in the next.
Sometimes you’ve gotta go where the opportunity is and Brisbane (sth east Qld) is looking real good. They reckon 1 million people are moving in over the next decade. What’s that gonna do for house prices?Good Luck…G7
Funny but true, awesome post![specool]
Just simply go into a Brisbane City Council office and ask for a printout of their zoning definitions.
Sometimes the best investment decision is to do nothing. Just watch what happens for a little while. This may be hard, especially when $10k is burning a hole in your pocket.
If you’re worried about being in too deep, then you will be when the deal is done.
Leave the money in the bank, move to Brisbane and then re-assess in the near future. Dont buy at the tip of a peak, or when you’re in transition.
And dont panic that you’ll miss the boat because if you’re a savvy investor there’s a boat leaving every day!Hope this helps…G7
If it is going to be your PPOR, you won’t have to pay tax on it when you sell it, whether that’s within 12 months or not.
If you move into it, it is automatically your PPOR and no timeframe is required. If your mail is getting delivered there, utilities in your name, it’s registered on the electoral roll etc. it is automatically assumed as your PPOR.
If you dont move in, I would probably not sell within 12 months anyway, that way you get CGT discount and if you did sell within 12 months it would be taxed at your marginal rate (income tax rate)-G7This means that if you want your super fund to own a property, only your super fund can buy it. You cant transfer ownership of a property to your super fund.
Hope this helps…G7
Hi Damien,
That’s a pretty easy question, if you have a P&I you might make $400 per month, if you have I/O you might make $500 per month.
You might want to start on I/O to maximise cashflow, say 5 years, and then switch over to solidy your long term position.Hope this helps…G7
Hi Steve,
Depending on how long you need the money for, you could always use a private lender, the ones that advertise usually in the Saturday newspapers. A lot don’t require security, just an ability to repay.
Also friends or family might help or even just wack it on a credit card.It depends on who it’s for, if it’s for you it may be the only way to purchase a property, if you’re going to provide it, it can be a nice little earner.
The purchaser cannot because they cant claim depreciation on a PPOR and the vendor cannot because this type of transaction eliminates the right to claim depreciation.
I’m not sure if this is right, but couldn’t you put the property into its own trust, then later on simply sell the trust?
You dont have to pay CGT on selling a trust, therefore you pocket all the profit, is this right?I dont think there’s any reason you cant do major work through the settlement. It’s just a matter of agreeing and using the correct clauses in your contract with the vendor. If they allow access, go ahead, but if they’re still going to be there during settlement it may be hard.
People have made a lot of money using this technique, so you’ve got nothing to lose and a lot to gain, so you might as well ask!I heard this guy did this, he pulled down 2 internal walls and ripped all the wall paper off, but the thing was the bank hadn’t valued it yet for lending purposes. Because it was a construction zone when they did, it came in at under $30k less and he was left hanging…
Hope this helps…G7
I agree with Ticky, the body corporate and council rates on those types of properties can be upto 60% of yearly rent, destroying your cash flow.
Yeah, it adjusted my thinking too, just finished it today. I think in the context you’re talking about they are both the same just different names. Buyers agent, spotter, bird dog charge fees for finding investors properties.
The fees involved would be revenue for a spotter/ bird dog/ agent and an expense for an investor. There is currently a debate going on about whether spotting is illegal or not, but there are plenty doing it and both spotters/investors benefit greatly from this service.I’m pretty sure the factors the council takes into account is simply the zoning and if what you intend to build fits into the zoning on that land.
Typically a council will say what you can build relevant to the zoning, ie-another 2 houses on the land or a bohemoth residential skyscraper.
The best thing I think would be simply to talk to them and state your intentions. Maybe some preliminary plans could help, or help to get a definitive answer.
My mate bought half an acre and the council said it could be cut in 4. When he came to do this they said no, but he had pemission from them in writing. If he had taken it to court, tribunal etc. the council wouldn’t have had a leg to stand on. He didn’t bother though and just sold it. He estimated he threw away at least $100k.
Hope this helps…G7I think you simply need to ask the council what the zoning is on this land, can it be re-zoned, subdivided (if yes, how much can it be subdivided) and what you can specifically do in relation to its zoning.
I would definately find out ASAP, you might be on a winner. It only takes 20 minutes to find this out. Also double check with the council on these matters because they have an uncanny ability to change their minds, especially after you’ve put some money down! You might be able to get something in writing? Good Luck…G7Hey J,
I would sell at between 320-350k, because of the price I probably wouldn’t take less than a 5% deposit and charge a 2-3% premium on the loan.
Depending on who you’re wrapping to, there could be a few variables, but what I said seems pretty stock-standard? Hope this helps…G7Nothing sinister Celivia, just advertising my distatste for the gentleman in a subtle type of way[biggrin]
This gets brought up every now and again, they sound good but can be fraught with danger!
1. It’s hard to finance anything under 50sqm (5 squares), I think the max LVR is 60%, have a chat to one of the brokers thou.
2. 5-7% for these are shit. There are plenty around going at 10%.
3. I’m pretty sure they’re residential, but with a commercial LVR ie 60%
4. You never own the property, just the rights to it. The hotel leases it back from you usually in 10 year stints, increasing it’s rent 3%pa or CPI. But they do go up as an investment, as normal.I’m pretty sure I’m correct in all I said, and I think they’re a good investment if you find the right ones, however, proceed with caution.
