Forum Replies Created
Thanks for the Wilko.
Is it foolish to think that the land for stage one (leave the rest aside) will be worth more WITH the DA and everything in place and ready to go. Would it not be reasonable to then approach a bank with everything in place and then ask for finance based on the DA and value on completion?
We can then use the finance to either settle and build, or maybe just build?
The owner doesn't want to get involved with the development, but I think we'll be work something out where I can settle on one part of the site at a time and possibly even settle on completion with a premium added to cover interest.
This is not my first property as we have several investments.
No previous development experience, but I have to start somewhere and if I can break this site down into parts and do the first as s duplex or triplex, I am starting with a fairly small chunk to lean on. If it goes well, then we settle on the next bit and go further.
I've run reno projects before, but never built. I do have a very experiences architect and a town planner as immediate family.
Job is not relevant, but income isn't too bad. It provides serviceability, but I couldn't just pay my way out of trouble.
Thanks for the input!
Thanks for that Freckle. The placement of that sentence at the end of my post was deliberate. If I can't make money then there is no point.
DA = Development Application
CC = Construction Certificate
OC = Occupation Certificate
Check this out. The figures aren't right at all for where you are, but it's not a bad start.
A lot of the advice above is very good. Don't be too fussed about where your broker is as it's the skills you need, not the face to face time. My broker is in Kempsey NSW and I have only ever met him once. He's sharp and quick to respond, which is what I want so that I can move fairly quickly.
The advice on free seminars is good as I've learnt a heap from them. One in particular gave me just one tinny bit of info and it will make me over 500k profit in my current deal. There is also so much great info on here and you'll pretty quickly get a feel for who you want to work with.
The best advice I can give you is to lean as much as you can about what you want to do so that when you do talk to the professionals they are only confirming what you already know. If they disagree with you then that is even better, but make them convince you of why. The only other thing i would say is to not neglect asset protection. It is easier to set things up right the first time and not try to fix them up later. I'm speaking from experience on this one.
In Launceston, about a 5 minute walk from the site. Why?
I really like this list. Nice to have it all written out. CTRL+C, CTRL+V
I agree with you Terryw. I'm happy to pay for advice as there is no way that I can know better than a professional who has kept their knowledge up to date and works with this stuff every day. That said, I'd also rather know as much as possible so that I can understand what I'm being advised and what the potential risks are.
There are plenty of options for companies and trusts at a bargain price. I always think 'you get what you pay for' when I see the prices but I also find some law firms add a premium for the name above the door…
Thanks for the advice Daneo79. I'm serious about getting this stuff right from now as I basically have no protection at the moment.
Just bought the book by N E Renton from fishpond… it was the cheapest I could find and free postage helps. I'll get that read and then keep going.
I had a quote from a lawyer for a $2 company as trustee for a discretionary trust. They wanted $2.5 to $3.5k. More if it needed some 'massaging'. That price was just to do what I specified as they didn't really want to advise me on how I should structure things.
After all my reading it seems that you really have to do your own research and get your head around the trust/company/asset protection stuff for yourself and then use that knowledge to try and find a professional that knows more than you to help get you set up.
Keep us posted on how it goes Dean and don't skimp on the details…
Can I clarify with an example?
I have PPOR valued at $250k with a loan of $170k.
I want to borrow another $30k – up to 80% – to use for investment.
So I should set up another loan secured against the PPOR with an offset against it (NOT the other loan)
Put the 30k in the offset while arranging the investment and then use it when ready.
The 30k loan would then be fully deductable and the ATO would not have an issue.Is that correct?
Just finished. Overall, it was a 1 hour sales pitch for the 2 day event comming up. That said, I still listened all the way through and took notes. A couple of things caught my attention and gave me somthing to think about. Was it worth an hour of my life? Not really… especially if your've heard Dymphna before.
What did other people think?
How did you go with Lyn amyhunz?
Hey Wake… Happy to chat about Orange and my experience. I have PM turned on, but I'm guessing I havn't posted enough on here yet. Email me at [email protected]
Cheers, J
Listening to it now. Lots of talk of upcomming conference and not a lot of content so far.
I live in Newcastle, but my family comes from Orange originaly and I've been going there looking at property for years, so I also know the area a bit. I use to drive through Blaney heaps on my way in from Canberra, when I was there. I pay a bit of a discounted rate as I bought my first IP in Orange through Fishers and now have multiple properties managed by Lyn. What ever you pay them it will be a bargain considering the service you'll get. Just give them a call and see what Lyn can do for you. She makes some of the other managers I have had look really bad.
I use Lyn from Peter Fisher. She is the best manager I have ever had, bar NONE. She has saved me hundreds of dollars by the way she has handled tennants and always looks out for my interests. Best manager I have used by far.
I know that sounds pretty strong, so I should state that I have no interest in Peter Fisher's and am not related to Lyn. Just ring them up and give her your property. You won’t regret it. Mention that Jarad recommended you. Also send me a PM if you want to chat about Orange a bit. I'd love someone elses perspective.
Cheers, J
I've read all the above and I'm just going to reword what is already there.
If your PPOR will EVER (even if it's unlikely) be rented out, you should have the loan on IO and avoid paying any of it off. This includes a redraw. The same goes for your IP. A 100% offset account goes against the PPOR as long as your living in it so you reduce the NON tax deductable interest. DO NOT offset against your IO as this reduces your interest that IS deductabel (BAD).
The reason to not pay off the PPOR becomes clear when you move out of it and buy something else. You can then take your cash in the offsett with you as it is just savings. You then have two large deductable loans and cash for the nice new house. If you used a redraw instead of an offset it would have worked fine 'till now. You would effectivly be increasing your loan by redrawing and it would not be for investment purposes (your PPOR is NOT and investment as far as the ATO is concerned). The ATO look at the purpose of the debt. The amount you redraw would attract non-deductable interest, whereas if you never paid it off ('cause it was in an offset) you didn't redraw.
I know this is all a bit long winded but it might makes sense to some. I also have an example of this that even my broker had never caught onto….
We bought an IP for $100k. We paid $10k deposit from our savings. Borrowed 100k for the IP and paid ourselves back the $10k that had been used for the deposit. At tax time our accountant then advised us that we could only deduct on 90% of the interest as $10k of the loan was not for the property but actually went in our pocket. The next IP was bought with a deposit bond. The fee was tax deductable and the 100% loan was all used to pay for the IP. You live and you learn.
Cheers,
JI have a house very similar to what you describe. The kitchen, laundry and bathroom were all lined with asbestos. As a home owner you can remove some asbestos yourself, but you need to do your reading and take the propper precautions. As we renovated each room I removed it, double wrapped it and then disposed of it legaly. Once the inside is finished I'm going to start on the outside and clad the house in a combination of colourbond and ripple iron. I've seen it done to great effect and I'm happy to just take my time and to one wall at a time. Beats watching TV and I can also insulate the walls and sort out any wirring issues as I go.
A mate of mine, who is a builder, also advised me that it is illegal to cut, drill through, or cover over asbestos. I'm not 100% on this, as the houses being clad in my suburb seem to break all these rules! Personaly, I'm happy to remove it a little at a time and have the house free of it. I do kick the family out when I'm doing the work and clean up thoroughly at the end. It would not stop me buying a house in future, but will definetely effect the price I'm willing to pay.
Hope that give yous something to think about…
