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basically if you are getting a new place the only upgrades should be to fix cosmetic issues, as the house will be new.. it is hard to add value.
Landscape is visual and can increase value if done right…. but make sure you design it for your target market. will they want space? or a garden? etc.double glazed is something that people notice after they have already bought and are living in a place. unless its on a main road and you can use this as a big selling point i wouldnt bother.
fixtures… depends how bad they really are, if they are terrible then yes. if they are fine, just cheap. then i wouldnt bother. it wont add significant value.you want to add more value then the cost of repairs. a new but dodgy kitchen is still worth decent money, the money to make it perfect might not be regained in selling price. but again, depends how bad it looks to begin with. or are they things you just notice because you have been there for a while.
renos should add a selling point to the house, or some desirability, the little things that are less obvious… you wont make your money back on those.
picked up by the mag? they read here? or you contacted them?
I am in the process of getting started.
I am about to start a career in construction management/project management at the age of 25. just finishing up uni. studied quite a few courses over the last 8 years.i am setting up a trust with my business partner soon, and going to be purchasing buildings with renovation potential and developing houses. once i have some better cash flow i will upgrade to some larger developments.
Been reading and studying property… for as long as i can remember… think i started buying property books 15 years ago.
also otp allows for greater depreciation and some places have better stamp duty for otp.
depends if you plan on selling or holding it, selling obviously the long construction time allowing the market to increase before you buy at the old prices. and holding is the depreciation etc.
i just noticed the link too!! sounds interesting, but i assume its like the info side of the results program and stuff without actually being in the results program?
research trusts and talk to accountants are the first steps.
benefits are being able to allocate profits to minimise tax, and a bit of added security.
downfalls are losses cant be moved out from the trust and some lenders dont do trusts, (but plenty do)
there are others but really depends on your situation. is this for investment or to live in?
cash flow negative? there are plenty here in adelaide. in lots of areas. did you mean positive?
yeah i have heard lots of good things… i just hate pages where they talk about how good it is without mentioning a price unless you contact them. but i have met lots of results people, and they all said good things.
basically even though the situation has changed….. it really hasn’t.
you crunch the new numbers, and if you are in a better position by taking the development then do that, if you believe you can make more by selling your property or doing the development yourself then do that.
But it sounds like you have a good understanding on equity, and how to work out the numbers and calculate deals now. so seems you have learnt what you need to go ahead and decide.
and yes he would get your house and land for around 230k, but due to his ability to develop, you will be going up in equity of 90k
230k for new development – 140k for the old.So if you think you can sell your property now and make an overall profit of more then 90k, then do that. but remember the new property can be depreciated etc at a full rate being a new property. so you will have that benefit over the place you have right now. so its really 90k plus some tax advantages.
will the new loan be with the developer? or is he just paying down the mortgage you have now? just curious. if you change who the loan is with, maybe you can also change your rate etc…. so think of that too.
there might also be some CGT issues, depending on how the deal is structured… are you selling him your land and building then buying back the new house at a reduced rate? or is the property going to be subdivided under your name then you sell him the extra titles? and he develops your new house on your land? or some other way? there will be CGT events if the properties are changing ownership.
What you have now is just normal fear of making a decision. just run the numbers, think of things in terms of numbers and business decisions. not property…. property is just a way to make money…. so its the money and tax you should really think about.
I’m 25 and think of investing and business as my job.
I love the game feel of it, and plan to do it as long as i can.Yes i want to be financially independent, but to me that means being able to sell a few of my business’ or investments to pay down the debts and hire someone to manage the “business” for me. BUT that doesn’t mean i will.
To me it’s about peace of mind and enjoying what i do,
Knowing i could stop if i want to, but enjoying what i do enough to not want to stop.
If i didn’t enjoy the journey of investing i’d probably actually prefer working a 9-5 job. as long as it was a job i had a passion for.yeah answers to most of these are out there, but ill give a few quick answers.
the CF+ houses that are CF+ as is without any extra dealing required are often in the outer suburbs because they are cheaper out there, and cheaper means less mortgage repayments.
CF+ and Capital Gains are a bit separate in that Capital Gains happen due to demand in an area etc, so if the area that the CF+ house is, also has other things that will increase demand in that area…. then CF+ houses can have HIGHER growth rate then other areas…. but areas that have low demand, might be CF+ but LOWER Growth rate…. take for instance a mining town VS the outer ring of a city. Mining is rent based so can get CF+..but demand for purchases are lower, so you can get growth but the base rate is lower then say the outer ring of a city where there is infrastructure growth etc boosting housing demand.
In the inner city its possible to find CF+ places… but they would disappear quick, hence why most people learn to MAKE something CF+ now, rather then find it. the higher prices generally will kill CF+, on a standard place… you have to add something or do some sort of deal to make it work more efficiently and hence MAKE the CF+ instead in inner suburbs.
before you are known as an investor who is serious by the agents, then look online, the paper, and talk to the agents. the more places the look the better chance you will find something. But once you have a reputation, agents will approach you with properties, if you let them know you are looking.
the last question you asked about sussing out a property or area is a massive one….. so i wont even try go into that also it HAS been asked many times, search around for that one. also the answer varies depending on what your looking for, a renovator, developer, buy and hold, CF+, all these people might be looking for different things in different areas. so unless you know what you want to do, we cant exactly advise on how to find it.
OH and that last questions is answered EXACTLY in the 0-260 book, where steve gives the top analysis formula, and the first 3 he always uses, etc etc. so maybe read up on the forums, and read that book. and most of these things should become clearer.
if you do find a solution i would be curious to know the details on what you did.
I never read 0-130 but i read 1mill in 1 year. and now reading 0-260. 1mil is more introduction and inspiration, and the 0-260 is actually quite informative.
It took a while to get into it, but once they start breaking down numbers and how to find proper properties etc it gets quite good.
So i can recommend 0-260 and if you want more info after that skim read 0-130 and see if its what you want.But 0-260 being more recent i would imagine would be more relevant.
basically if you had some spare money and wanted to buy it outright it would be an alright deal, if its tax deductible then thats another option but not sure if it is or not,
so 150k profit plus how ever much the property goes up in value over the next 20-40 years.
BUT its a long term investment unless they are sick or something already…. also who would pay the rates etc?
Hey Jess, you already added mine, but i guess i should post it on this page anyway. just so we can get everyones together!
97% at 6.6 with no fees…. that sounds pretty good to me as it is… but maybe i’m not fussy.
glad its a good deal for you, let us know how it goes over time.
Just to clarify on this situation, if the deed is written so it lists Daughter of beneficiary xxxx or something like that, with no names, then lenders will not request all beneficiaries to sign the deed of trust?
Also will this stop them requesting non named beneficiaries to give personal guarantees?
just thought i would bump this up while more people were online
For the place i am currently staying in, we have a water allowance, and are only charged on the excess over that amount. so thats another way of doing it too. but i am in SA.
good development books should have a section on subdivision. but i don’t know any specific subdivision books.
When it came to learning about titles, i just googled… and make sure your pages are from australia.
But people have probably asked questions about specific titles on forums, so can maybe do searches on those too.Sorry cant help more.
