Normally, developers look for at least a 20% profit in a deal.  However, in this depressed market, where there are loads of bargains, I don't look at anything unless it has at least a 25 – 30% return.  So, based on your total costs (purchase price plus subdivision, holding etc costs) I would be wanting at least a profit of $90,000.CheersK

We have just had a child led necessity to upgrade to a seven seater.  While my heart swooned at the Mazda CX9, we just couldn't justify the cost, despite being essentially retired and completely financially independent.  I always thought that when I was in this position I would just buy the car I wanted and not worry about the cost.  But I st…[Read more]

I'd recommend the TAFE Property Investing Course.  It has been discussed on the forum before so if you do a search you should find out info about it.  I did it a few years ago and found it to be excellent: no products to sell, a diverse range of opinions on different strategies and potentially an excellent network of people that you will get to k…[Read more]

Do a DHA search on this site.  It has been discussed several times over the past few years.CheersK

It depends on whether the property he bought was a PPOR or an investment property.  If when he sold it he claimed the PPOR CGT exemption then you cannot get the FHOG now.  This is the case regardless of whether his name is on the mortgage or not.  The basic rule is that if either you or your partner have ever owned a property (PPOR) then ne…[Read more]

I'm with YossarianYou asked for advice and you got it.  The fact that none of the responses have been "positive" including some responses from very experienced property investors, suggests that you aren't likely to get the answers you were hoping to get.  Maybe you should take on board some of the advice you have received.K

You will need to look at what the sales agency says.  If the agency says that the vendor must pay commission if the agent finds a purchaser willing to pay the appraised price or higher (whether or not the vendor accepts such an offer) then it would appear that you will probably have to pay the commission.  However, the agent would need to show t…[Read more]

Hi MattI think that there are about 60 units in this block.  I am reasonably familiar with Adelaide and I would expect that a block of flats that large in that area would be a bit of a slum.  The figures may stack up but I think you should also be looking at not only the quality of the tenants you will get, but also the quality of the other t…[Read more]

It depends on the state you are looking in as to whether you can kick the tenant out when you purchase the property.  I know in the NT when you buy a property, the tenant continues on their lease until it expires.   Call the Real Estate Institute in your state to find out what the deal is.CheersK

Hi VolitansCongratulations on the purchase of a property you are happy with.I agree with your comments about "who cares how much money they make".  I bought my first IP nearly six years ago for a grand total of $90,000.  I bought through a buyer's agent who charged $3,500 for finding the property.  At the time, everyone I knew told me I got rip…[Read more]

The most I have ever paid for drafting fees is $2500 and that was for three houses that the Council had problems with and required a lot of to-ing and fro-ing with the draftsman.Get some recommendations from people and then get quotes.  The prices quoted above seem a bit steep to me.  However, I am in SA and things might be a lot cheaper here.CheersK

Unless you are looking at absolute top end of the market (ie, multi million dollar properties) then just go to a draftsperson and get them to draw up designs.  I have never known a developer to use an architect for straightforward developments.We just use a draftsperson and have no problems at all.    Find a good one through recommendations in you…[Read more]

You can make whatever offer you want.  There are no rules or laws regarding the kinds of offers that can be made, regardless of whether there is an upcoming auction.  Even at auction, providing you have the approval of the vendor, any bids can be subject to various conditions.I think that what the agent is trying to say is that unless the offer i…[Read more]

I'm with the others on this.  I haven't practiced Family Law for a long time but my understanding is that if the transfer from both parties to one party is pursuant to a property settlement and it is reflected in in an agreement that is stamped or otherwise acknowledged by the Family Court, then it will be free of stamp duty.  I'm sure your l…[Read more]

Hi AndrewYour post is confusing.  On the one hand you say that you conceded that your suggestions might be dodgy but then for the rest of your post you justify why you don't see a problem with doing exactly what you have proposed.

AndrewBuysHouses wrote:
At the risk of provoking Richard's ire, I will say that any sort of entrepreneurial spirit…[Read more]

CRJ is correct.  It only applies to spouses and then only for a PPOR, not an investment property.  There are other circumstances when there is a SD exemption but they are too complicated to go into on this forum.CheersK

If it is your PPOR and it has currently in your name and you want to add your spouse's name, then it is exampt from SD under the Act.  This is one of the very few situations where there is a SD exemption.CheersK

Hi ShaneYou can ask to have that condition added to the contract.  You will no doubt have a cooling off period in the contract (varies from about 2 – 5 days depending on what state you are in).  Although technically you have no right to have the contract after you have signed it, what you will effectively be doing is exercising your righ to cool o…[Read more]

There are several threads on the forum on this exact topic.  Do a search and you should get all the answers/opinions you are looking for.CheersK

I'm a lawyer by trade and I have never done my own conveyancing.  Yes you can do it yourself, but if you don't know what you are doing, you could get yourself in all sorts of trouble.You are better off paying a few hundred dollars and making sure that you get the job done properly (and if it isn't done properly you can sue the…[Read more]