Forum Replies Created
Thanks to everyone who have eplied and given me some valuable information. I will work out some numbers and take it from there. I have actually spoken to my accountant and he seems really interested too so I might speak to him a little further first (seeing as he is here and has the funds readily available). I really am just wanting some start up capital so might not be everyone’s cup of tea.
Thanks again to everyone. I really appreciate the help and sincerity. [biggrin]
Does onselling the land before it settles also raise the issue of 50% capital gains tax as it was sold before 12 months expired or is that only for houses? Does it attract stamp duty, etc?
Hi Grossrealisation,
Thanks for your comments. My frst post wasn’t really to sell the idea otherwise I would have worded it better. It was more to find out details as to how to proceed looking for an investor and what things I would need to know. (But I guess I should have worded it better anyway.) Sorry for that! Sometimes am too honest for my own good!!
How much does an investor expect to get in return for their investment especially if the deal takes nearly 1.5 -2 years to complete? (Council takes about 8 months then 8-12 months approx to build.) Does it go by a % of how much they invested or a rate of % like the bank does. Say if they invested $50k then 15-20% interest? I have never considered this before so need to know some information about it please to see if it would be worthwhile for myself and for the investor. You can also PM me [email protected] if you like.Thanks heaps. [biggrin]
Hi,
I actually thought you would multiply the monthly rent x 12 (this gives you yearly rent) then divide it by 52 to gve you the true weely rent. This is how the real estate people and banks do it. But please correct me if I’m wrong.Regards. [blush2]
Hello,
I am no developer although am starting to go through this. I can help on a few points –
– I calculate stamp duty at 4.4% – this gives you near enough to exactly what it will be. Although I generally use 5% as a giude and htis gives me a little extra to play with – so stamp duty on 330k is $14.5k.
– The block if in feet is converted by ft x 0.3048. So 230ft = 70m & 52ft = 15.84m. Block will be 70m x 15.84m = 1108sqm approx.As for the rest look in your local paper and ring for quotes. That will give you the best idea from local tradis how much each job costs to do which you can then allow for.
Sorry not much other help. But hope that starts you off.
Cheers Andrea [biggrin]Don’t forget too that the bank will be paying in progressive payments upon each stage of development so you will not be hit for the entire lump sum all at once. Also the bank will lend based on the valuation of the end product (based on seeing the plans) so if they are worth $300 ea say to sell when finished they will loan up to 95% (depending on which bank) of the total value of $900 (but that also included the original amount you bought the house/land for). You should also be trying to get tenants when you know the houses are almost complete but I guess you already knew that. I am doing the same thing so I know where you are coming from. Hope that all made sense.
Good luck!! [biggrin] Andrea
Hi Cata,
On this same topic, would it be worthwhile to get a trust started if it involves only one person? I asked my accountant about this and he said for just one person there wouldn’t be much need as it could still be broken apart and sued seeing as I would be the trustee and/or the only beneficiary so it would look as though I am controlling it with no-one else. He said to speak to a solicitor first. I am interested in it from reading Ed chan’s book, etc, and I have my house and 4 IPs at the moment and am looking to getting more. I am interested in mainly asset protection as I am worried if I get married again or meet someone else my assets are fair game for them to get half if anything goes wrong. I don’t want to lose what I’ve built up. Any thoughts on which way I should go?
Regards Andrea
Hi Mee Chee,
I agree with Dazzling there. Call a few house removal or salvage companies out of the yellow pages and ask them to have a look at the house and give a quote as to how much they would pay for it to take it away and clear the land for you. You could sell it whole or bit by bit. You could place ads in the trading post for say the kitchen, the bathroom items, the floorboards, etc (anything of value worth selling) and those who want to buy it can remove it themselves. You could even place an ad in the TP selling the whole house and those who are intereted have to take the house and clear the land. Whereabouts in SE are you building out of interest?
Good Luck Andrea
Hi Andrea,
I ahve one for sale if you are interested. Please meail me at [email protected] and we can chat.
Regards Andrea
(Great name by the way [biggrin])Hi Kiwi,
What a your terms (how long) is the lease for? I am from Melb and don’t know much about Sydney – is it a good area – will it grow in value really well? do you have any pictures you could send through – my email is [email protected]. If I decided to buy it for a buy and hold can you organise to have it rented through a real estate agent for me?Thanks Andrea [specs]
Hello,
I have recently bought a block of and also with a house ($430k) on it in view of building 3-4 townhouses on it and either selling one or two of them or renting them as cashflow positive. (I have tenants in currently whose lease expires in oct – gives me time to go to council) although is negative cahsflow to me at the moment as their rent only pays half the mortgage.
I have approached a major builder (part of Simonds) to ask them how much they would construct for (works out at $5k per square compared to $10-15k with private builder). With them all I have to pay is $1000 upfront to do soil tests, surveys and draw plans. Then I can submit this to council for approval. Once I have approval I can show it to my bank who said they will lend me 80% (i think) of the value of what they would be worth in the marketplace after they have been contrsucted (say $450 ea).
This way I have only laid out $1000 and council fee intially and that’s all. Then I get the rest from the bank to start contruction and they handle all the construction payments. This definitely helps my hip pocket as I have nothing but lint in there [blush2]
Hope that helps you a little.
Regards Andrea
