Hey Mick,

Have a look here:

https://www.propertyinvesting.com/forums/community/heads-up/4324505?highlight=carly%2Ccrutchfield

and here:

https://www.propertyinvesting.com/forums/community/heads-up/4324196?highlight=carly%2Ccrutchfield

I've gone thru the home study and it is a comprehensive product. I'm going to the Brisbane 3 day bootcamp/seminar in Oct with my nephew (whom I'm mentoring) and can't wait.

Hey K,

It is frustrating when they are first poster's and then they have someone else from the office come online (with another first post) and back up the uncalled for testimonial. They wouldn't have the intelligence to realise that the publicity will backfire and that all here is in the public domain.

Contrast this with some of the veterans here and on other forums, who provide a wealth of info and have a simple link in their signature block at the end of the post that one can explore. I certainly don't see anything wrong with that.

As with everything to do with investing, caveat emptor and perhaps the spam police could be more vigilant in deleting these posts

I used to reply to them and point out how obvious their strategy is, now I try to just ignore

It would probably serve new forumites well to have been in the community for a month or two and posted at least a dozen times or more with some useful info before they even think of tagging a link to their site.

Stargazer,

these work best on corner sites, but can be achieved on standard blocks also. Not sure where you are situated, however best is to pick two or three suburbs. Become an expert on them as far as what they have to deliver to residents/tenants, facilities, infrastructure, amenity and all the other buying criteria…..I could go on however beyond the scope of this reply.

BEFORE you buy, go to the council (and also their website) and seek town planning advice as to the requirements for lot size per dwelling, minimum width (this will affect provision for a driveway if not on a corner), open space provision, etc. I would also ask your solicitor for some advice on your proposed intention.

Look for sales of other similar type subdivisions to what you are proposing in the selected areas and also what they are selling for, lot size, widths, etc. Be careful to allow for any easements on title of your prospective purchases. They should not be built on and may affect the position of any subsequent dwelling.

A good and simple/cheap book on property development in Aus is by Ron Forlee – Australian Residential Property Development. This book is available at all the chain bookstores or it can be ordered. There are other titles also but this is a good start.

Also, run some figures on build and hold yourself for the rear subdivision. Sometimes, with the depreciation of a brand new box (despite the obviously higher lend amount) and the higher rent from a new dwelling, the rear one costs very little if anything to hold. That way you've manufactured equity from fresh air by subdividing the rear yard and have two properties working for you by way of capital growth. Perhaps also run this past your accountant.

As you've sensibly mentioned in your post seek out all this info before you buy and ensure it can be done. Also once you've narrowed it down to a couple of properties, before making you offer, take the addresses to the council town planner and ask for guidance if you can achieve what you intend. There are no guarantees however, they'll be quick to point out if you can't

Hope this helps and good luck with the strategy.

Earthling,

you've have good advice above. I personally wouldn't accept such a fluffy clause unless the property I was potentially selling was going stale and giving the perception of being a lemon if was on the market for a long time. They will tie it up for two weeks and have easy exit if they wish or they may begin discounting wars with you.

The use of such generic DD clauses tends to be more common with larger high end commercial transactions. Very uncommon with simple residential sales which I'm assuming yours is.

Make the terms of the "subject to clauses" tighter and more specific as mentioned above. Your solicitor needs to guide you with this. No one likes clauses. I rarely sell mine, however the few I have sold have always been unconditional. In a slow market clauses such as pest and building are a given. In a hot market properties virtually sell themselves

I've said it already, but again…………consult your solicitor.

The ATO is targeting Hybrid Trusts.

Have a look at this post and the link to the ATO:

https://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4324208

Also my guess would be that with credit squeezing being flavour of the month (year), and due to the current conjecture and ATO's focus, the lenders are not keen to deal with such structures in anything but (perhaps) a full doc situation.

Have you secured finance before thru HDT?

I'm not sure who might finance such a strutcure at lo doc, perhaps some of the MB's here can assist.

Assuming from your post that they're on separate titles. If the house next door to the PPOR was purchased after Sept 1985 and was an investment property, I'd say that CGT would be due.

Is it an actual house that you rented out whilst living next door in the PPOR? Or, is it a tennis court/pool that (could be argued) you also occupied and enjoyed as part of your residence?

Also, ask your accountant.

This may help AimHigher,

Not sure if you're aware of this:

http://www.nmddata.com.au/index.php

I have a feeling that the banks must be seen to put the property to the market by way of auction and campaign with a licensed real estate agent to glean fair market value, and not do private sale deals with their customers or investors, who at the end of the day are buyers anyway.

I guess it's more transparent in this way.

Not sure of any MB's on the forum can shed any further light.

Have you got pre-approval from the bank? If so, to what level will they let you borrow? If not, why not?

What exactly needs doing. Is it major structural work? Or cosmetic?

Can you look at buying in partnership with someone and develop in tandem later?

More questions for you. But that's the only way we can help with our opinions.

Hi Nathan,

you've answered your own question…..that's why it's called insurance.

You are debating about purchasing LL insurance on "one of your IP's" , does that mean you own others without it?

Hey mick,

that sounds great. Income as well as future subdivision. As it's positive CF for you, that's a good one to hold.

Do you mind if I ask, was it advertised, did you seek and create the deal or are you a local who was familiar with the town plan?

In any case, well done!