Forum Replies Created
The short and definitive answer is ‘NO’ !!
You can’t add another home or house…without approval or a building licence…and council would simply reject such an application.
Its based on the zoning of the land / block…and if it not zoned for subdivision ( either strata or green title) then you cannot add another dwelling.The only way around this is to do it illegally….
To do it legally…you would require: a seperate water service, seperate electricity service, the ability to tap into the existing sewer or the requirement to add another sewer junction, etc.
All these service providers will only act if there is council approval first…now you are back to square one…no council approval…no additional dwelling
KP
Nice one Ozi….
Very helpful too…………You can do a search of the title through the Department of Natural Resources and Mines, where title details are recorded in Queensland.
You will have to pay for it.
It would be best to query this direct with them.Alternatively, if you have a friendly RE agent in your team, or a conveyancing agent, you can get the search organised through them.
Then you can contact the owner direct, or have your agent contact them to check if it might available for sale.
Good idea though…and good luck with the search..
KP
WOW!!
Thats a good point Julia…What happens if you demolish….and say, build two residences.
Then…sell one,,and claim it as your PPOR,,,how would you go with CGT in this instance ?This is on the basis that the original residence that you demolished was your PPOR previously…
KP
Yesssss Shaun,
That says it all……………
Shaun,
I read the book pretty recently.
It was worth reading…but I didn’t race out and start looking for pos cashflow properties in the sticks.
I are in the sticks already,and am surrounded by such properties.
Some with asking prices of $400+k.
Average would have to be closer to $260k.You can only caution newbies…you can’t save them from themselves.
As far as I am concerned, there is always a profit to be had in real estate.
And I sure as hell wouldn’t let the rambling of a taxi driver disuade me from buying if I was in my buying cycle..
KP
All these comparisons with Singapore and Hong Kong…
You need to keep it in perspective. They had massive speculative buying, resulting in huge bubbles, which burst resulting in price corrections. They are gambler by nature..Talk of US property, where you could buy for 10c in the dollar after the savings and loan crisis in the 80s’,or Japan property…yet to recover from their bubble.
None of it relevant to Australia’s market.
We are our own unique market.Zen, you mentioned buying in Perth…and were cautioned against it.
You can’t lump Perth in with the situation occuring on the eastern seaboard.
For starters, it did not have the same gains that, for example Sydney had, thus no over correction is due.
In fact I would suggest the opposite is occuring….there is still moderate growth taking place.
This is not an endorsement to go ahead and buy in Perth, but from my perspective, there is always a niche to be had in any market…where you can make a reasonable gain in the shorter term, without relying on the market to save you, by giving you capital growth, and this is especially the case now, in the current market.To back up this view, I am still buying…its better to do so at the momemt…there are less buyers around..less competition.
KP
Its a great question Steph,
And one that has baffled me too.
Nats gave a good explanation of how a young couple can achieve the dream, and still have a life as well…
But that was at $250k and not $400k….its mind boggling.And the young professional couple who earn $110k and $50k together…are inherently not savers…they’re party going spenders. So the deposit question is another mystery?
They think that high income equals wealth…but all they are doing is trading time for money…so its a trap in itself.
And the job usually burns them out within 10 years….then what ? wake up call time ?…..time to reassess the finances ?Its truly scary from where I sit…..
KP
Fitz,
If you go through the correct procedure with the serving of the breach notices ( or your PM does) then when you front up to the magistrate he will find in your favour….hence this should be sufficient grounds for the insurance company to pay up…Reagrding the premium for a portfolio of 20 IPs’….
surely you would be in a good poition to negotiate a discount on a bulk policy ?Hell!! you could almosy underwrite it yourself and start up your own insurance company !!
Cheers
Kevin..Well done Shaunwalker,
Good post and good points.And Yack, good of you to raise the topic. Look at all the response it has generated.
But at the end of the day, you can’t help those who can’t help themselves.
I say stick to your own investing philosophy and let the newbies and lemmings jump over the cliff..
I did, and survived and learnt plenty from the mistakes I made.
KP
There you go again Anubis,
Putting your foot in it again.
Narrow minded and deragotory comments about what you describe as small towns with a few 100 ppls.
At no point did ANYONE much less alvin mention small towns with population based in the 100’s.Thats your self imposed and limited imagination at work.
This is a huge country….with many regional and remote area, that support communities of all sorts, shapes and sizes.
The yield I mentioned are not typical, but created. A typical yield would be closer to 8.5 %
We only invest in NEW property. The difference between our cost and the market value is substantial, hence the reason why we do it.
I suggest taking a leaf out of Steve’s book,,,where I believe he uses words to the effect that the best deals are created.
All I am suggesting is that there is more to this than the simple assumption that investing out of CBD centres has to be on the basis of finding a “shitty” town, buying run down property purely for the sake of positive cashflow.
I for one DONT advocate investors do this , much less newbies.
But I will put forward what I consider to be a more balanced view in answer to the original question posed by alvin..Cheers,
KPHAHAHAHAHA !!!!
Thats so funny Calvin…..Hows HBI…he
Heard some bad news…is it true??Ooooooohh, I take offence to that..
I live in one of those such places…Next you’ll be referring to the ppl that live there as “shitty” as well..
Well, we get yields approaching 11% on what we do,, with built in equity to boot ( don’t ask how much…you’ll die)
So before you make such aspersions and judgements and lump all remote areas into the same category, I suggest that you should also do some homework Anubis….
KP
Thats a good news story if ever I heard one Derek.
Well done and congratulations.
For Michael, I wanted to add: unless you have a need for the equity (hence money) from your property, for some purchase elsewhere, or for some personal requirement, then I would be hanging on to it and not selling.
At least not till you investigated all other options and possibilities ….eg…you may be able to secure a positive cashflowing investment to offset the negative property you currently have., thus leaving you neutral, but with two properties or ivestments working for you….just an idea…one of many.
KP
I missed it Derek, but heard it was good.
Will be trying to catch one in Brisbane next year.
A couple of forumites on SS have given me in depth info on his strategy and it seems reasonable, but bears further investigation on my part.
Michael,
Do you declare any income in Australia to be able offset the rental loss on the IP ?
If not, then all your losses are also capitalised and can be offset agains any gains if you sell.Also, do you have another market that you wish to invest in? eg.. overseas, closer to where you are residing?
If your plan is to invest further in Australian property, then you can improve your servicibility by utilising a Cashbond or Annuity, which can be purchased against the equity you have built up in the property.
I would suggest you speak to a good broker, to secure finance to tap the equity, and also to Steve Navra regarding the cashbond.
You may well be able to purchase more property by simply rearrangeing your financials..
KP
What is the possibility of the husbands going guarantor for the IP loan?
Go SuperTed,
You’re on the money.Australia is far less racist than many countries elsewhere.
I have lived overseas and travelled to many countries and can only say what a privilige it is to live here.
Australia and Australians are far more tolerant of other races than, for example some countries are of their OWN races.In many countries, it is reinforced by an entranched class structure against their own people, using a system of wealth and therefore power, against poverty and therefore helplessness.
Thank God for Australia and the opportunity to to live here.
KP
More ways than one to skin a cat Yack,
Not all buyers that a “bank won’t touch” are bad risks.
If, of the total market of buyers out there, 20% don’t qualify for bank finance for whatever reason, then that is a huge market to be tapped for vendor financing or any other creative method of achieving a sale.It is not always necessary to increase the interset rate margin by 2%+.
In fact it is possible to offer vendor finance at below the market rate ( discount the interest rate) and still achieve positive cashflow….Like I said, more ways than one to skin a cat…
Yack,
Its a valid point you make to sound the warning bells…
But I have to add that this is Steve’s site, and it supposedly is dedicated towards positive cashflow investing.Maybe a comment from Steve giving an update on his opinion of what to do in the current market would help.
The suggestion that newbies buying for the first time are lemmings is a bit cynical, at best.
The opposite to this would be’ analysis paralysis.
Don’t do anything out of fear that you are going to make a mistake.All these conflicting messages for a first time investor causes confusion and in the end, inaction…they just give up as it becomes too hard.
I say, buy when you can afford to buy.
I always have…and continue to do so, for better or for worse.
Its the best way to learn.My experience is that no self appointed expert has been able to tell me definitively, when the market was booming, when the boom would end,or when it was stagnant and for how long it would remain so.
I did my most property transactions when the rates were around 18% in the early 90’s and survived.
The first and hardest step is to get into the market……and build from there….
KP
Sarah,
We used to arrange FIRB approval for foreign owners.
I guess that having visited the FIRB site you would be familiar with the requirements.I would suggest contacting some local agents with your requirements ( ie…newly built and previously unoccupied homes, or 50% of a new development)
I believe you can also purchase vacant land as long as you build on it.
This may be worth considering, as your stamp duty costs would be much lower…( stamp duty on land price, vs stamp duty on completed building+land)Good Luck,,
KP
