Hi, You can buy from someone with a new sub-division to sell. I broached the idea to a few people overseas when I started my sub-division project but I had enough funding & we couldn't decide on immediate contracts so the whole project is still in my sole ownership.The houses have gone up from $285000 to $320000 so I'm no longer selling. I don't…[Read more]

Hi, good luck. The price is not bad. Adelaide is still suffering a housing shortage. $180pw  is correct. So if you intend the house for rental, it's good yield.If I had looked at Elizabeth earlier, I'd probably have bought. Out of curiosity, I went to an open inspection. Ex housing trust home on 700+m2 solid brick in need of refurbishment, asking…[Read more]

Hi, that's been my welcome to Australia. The tax laws cause us to move house every so often. I've just sold my house & will be moving to one that I've just built.Like you, I fortuitously bought before I sold so both properties have gone up in value.It didn't make sense for me to sell the new house & I needed to retire some debt. Selling PPOR gives…[Read more]

Hi, 600m2 isn't enough for sub-division if it's a hammerhead/battleaxe type. Where I'm at, the requirement is a 425m2 back allotment. The driveway will take away 75m2.What kind of frontage do you have? If your plans conform to existing council requirements, the initial costs for sub-division are not very high.Survey + DAC application = $2000House…[Read more]

Hi, KI is beautiful for a holiday home. For comparison, my sister wanted to buy a house on the beach at Penneshaw in 1988. It was $26000. A comparable beachside house in Adelaide then would be around $70000.KI has an accessibility factor to be concerned about. You drive one hour to Cape Jervis, then cross by ferry. You probably need to carry your…[Read more]

Hi, like eveyone else, I worry about my exposure to property prices.It's in the news that SA govt is freeing up another 20000 new allotments. Quite a few people have commented that it'll improve housing afffordability as it'll bring house prices down.Qualitatively though, housing is not quite statistics alone. Sure, new houses in these new estates…[Read more]

Hi, the easiest is to find the +ve gearing in the 1st place but if you can see it, everyone else can do so such an animal seldom exists.Occasionally, you can find undervalued properties & they're usually ones with quirky problems like rundown condition, near busy tracks etc.You can also build, in which case you face the risk of falling property…[Read more]

Hi, yes, there are people who have done it & yes, even at 80%LVR, they're still slightly -ve. This is what I did & receiving plenty of put downs from family & friends.Purchased property cost $260K + $30K other costs.2 years on, 4 houses almost at completion. Total costs inclusive interest = $920000 i.e each house cost $240KThe value is around…[Read more]

Hi Crashy, interesting nomenclature!I'm myself a baby boomer, "retired" at 52, living off investment properties. Among my friends, about 1 % aren't working, only 1 other is living on savings, the others are supported by husbands who are either still working or who have retired on govt pensions or have enough investment income. The majority will…[Read more]

Hi Mikey, spot on! I cursorily gave Christies Beach a glance & thought, "Gee, that looks like a potential – that was $180000 for an ordinary house near the beach. Unfortunately, I had a bias because my sister's 1st housing trust home was in Christies & she couldn't get out of there fast enough! Did that in 1981. So all of us had this idea that…[Read more]

Hi, interesting thread. Doing it tough? Yes, when I worked 16 hour days 7 day weeks for 6 years to pay for 2 blocks of shops while maintaining home loans on 3 houses including PPOR.I no longer "work" & for a whole year I was without debt until I realised the FOLLY  of working to pay ATO full price. So I agree with Moosehead. Not borrowing from…[Read more]

Hi, Your post suggests that you weren't sure that you can claim the interest on the 20% deposit drawn from the home loan.It's true that you can claim all interest paid no matter which loan it is. That's why it doesn't make sense not to use it! However, if the PPOR loan is used, calculating the interest is much more tricky.When I started buying…[Read more]

Hi, Adelaide as you so rightly said, is bursting at the seams. Old cottage I bought for $240000 in Nov 05 is now revalued by the bank to $345000. That's aboiut 40+%Taperoo went up 28% bet 05-06. 2007 is hard to guess because there're so few sales.The upper end suburbs went berserk somewhere last year. We have Million + properties where they used…[Read more]

Hi, this thread has turned into that interesting Foundation theory all over again. 18 months ago, I was very nervous about the over supply issue in Adelaide/South Australia. I'm happy to report that I followed my guts that we build not just for migrants (in fact, we don't build for migrants – a lot of them here can't afford to buy their own…[Read more]

Hi, interesting problem.Not knowing anything about you at all & looking at the facts, the best option meaning the one with the most money, is sell PPOR.Then rent a house & build on one block of land.Obviously, the land could be in another state which means it wouldn't be viable.The other thing of course is that PPOR may not be for sale. There's…[Read more]

Hi, don't think I can help but can share your frustration. I built 4 houses with a very conservative end value of $285000 each. The bank gave me a partial construction loan & a business loan of $840000. The new houses are at handover stage & are discreetly on the market for $280-310 thousand. I'm coming to the end of my resources & asked for an…[Read more]

Hi, especially to Simon. There was a suggestion that we're over supply when I joined this forum 18 months ago & I wrote quite vehemently that what I saw on the ground suggested that it was NOT true. A few people scorned the idea that our property was under valued.Now with rental vacancies at 1% approx, (it has been like that for months & months),…[Read more]

Hi, it depends on the end value of your project. If your building cost does not exceed $850 per m2, then the initial cost is a bit too high. The valuer used by my lender put my project in the "mid range" cost & I pay about $5000 all in for design, submission to council & LTO, surveys etc. This amount is only for paperwork. It doesn't include…[Read more]

Hi, I'm very interested in building but my interest & inclination leans towards design & I find that I read plans & understand building requirements fairly efficiently. I'm also able to tell by looking whether a tradesman has done the right thing by me.Therefore, I'm not unhappy to be a "developer" & employ other people to do the work.It would…[Read more]

Hi Xenia, can I talk to you sometime regarding rent to own options? I'm looking to lease 4-5 courtyard homes. 4 are almost at lock-up. One has sub-division approval & building will probably commence in August.Cheers,Kum Yin