Hi Browncat
I’m sorry if this does sound harsh, it is not meant to be.

My first reaction to your post was that of disbelief and to some extent anger.

On re-reeading it I do actually feel a sense of compassion.

However having said all that.
As I understand the facts you presented are:
You have lived in this house rent free for 17 years
You have paid for upkeep and reapirs during that time.
You aging mother is looking for an income and justifyably looks to her asset base to provide that.
If you buy the house from her at a reduced price then her asset/equity base is diminished.
If you then sell 3 years on, who reaps the profit??? Is there to be some profit sharing with your mother, given you would have paid well undermarket value? How is your partner going to feel about that if / when the time comes?

I beleive your mother is justified in her approach to what is essentially her asset. Is she only looking for an income?

Not a nice situation for you all to be in, this sort of thing never ceases to amaze me. Families can be torn apart bby this sort of complicated situation. Tread carefully.

Regards
Sue

Hi Lesleigh

I agree a staged development might be a useful approach, you could then have some vacant land, some built and some underway, that way purchasers can have a choice of vacant land where they can add their own design, partly built ones where they can coose some fo the colours and others completed for those who have no vision in terms of colour etc. You could also hire some furniture and set one or more up as DISPLAY homes, including a higher standard of fixtures etc.

Good luck with it all it is an intersting journey

Sue

Hi Doog

Can I suggest your first port of call should be your local council. They will most likely have a “development plan” which sets out things like building specs, land sizes, driveway needs, easements etc. It would then be worth checking out the potential sale prices of land only in your area, don’t forget to compare appropriately sized blocks. Also the local Real Estate Agents might help out with a potential sale price.

Once you have gathered all this info, it may raise more questions about the viability etc, then you are in a position to make an informed choice.

Another question you might ponder is this. Is your reason for not building because you are concerned about the disruption in your home. If so you might think about selling both the subdivided bit and your home, cause once it is sold if you haven’t built on it someone else will and they will creat a lot of disturbance in the meantime.

Hope this helps and good luck

Sue

Some options I might take in that situation:

• Renovate IPs and increase rent, thereby increasing the value
• sell both IPs and pay off more of your home mortgage

downsize your home, thereby reducing your personal debt

• Sell one IP and reduce personal debt on home

.
Have you read Steve’s article on this site about “Negative Gearing”?

I recall Steve asking the question in a seminar when talking about “Negative Gearing” – “How fast do you want to go broke?.

I personally would be active in my approach to resolving the cashflow rather than waiting around for “Capital Growth” that may or may not occur and then if it does, interest rates could then rise and put you back in the same situation.

Have a good look at what you are trying to achieve then develop appropriate strategies for achieving those goals.

If things aren’t working the way you want, maybe you need to do some drastic change to shift the goal posts.

Sure Positive Cashflow properties are more difficult to come by, there are some still out there.

Look for different strategies to make property worth more either for valuation purposes or for rental purposes, get creative and “add value”.

Hope this helps

Sue

An interesting ? and one I posed to my accountant recently. He seems to think I can claim around 10% for my company / trust to occupy. Maybe I can make it more if I include rooms for meeting with agents etc.

I do know from a fellow I have been involved with that you may need to make your lounge room etc look like an office, right furnitute etc and with the right exits needed for security reasons that it is possible to claim more.

I guess it just comes down to being able to demonstrate it and justify it.

Good luck

Sue

Hi all

Don’t want to rain on the idea it is a creative one. I am concerned though what happens if the system falls over or is hacked into. Wireless whilst very useful ( I have it on my laptop) can be a hazard to the ill-informed. Not sure how much you know about it.
I would also wonder what would happen if the tenant lost data etc due to a hacker. Would they be coming back to you as the suppplier for retribution?

I agree with Dazzling

I personaly have searched high and low for +ve cashflow in Canberra / Qbn area for over 12 months now. Prices are generally too high for the rents you achieve.

I had a -ve geared place in Melb for a number of years and having recently sold it am not going back to -ve gearing ( how fast can you lose the dough). I am up for +ve stuff or increasing value in some way.

I want to make money and heaps of it not lose or limit my borrowing capacity or limit my purchases to 3-4. I want property and loads of it.

Problem + Solution = Profit.

Isn’t that why we are in the game – to make money for what ever reason?

Oh and just one more point. Why units when “Land appreciates and buildings depreciate. There isn’t a lot of, if any land value in units.

Can I suggest re-examining why you have these IP’s in the first place? What are you looking ot achieve in the long run?

Hi pstoe

I can give an opinion on either as i have no exp with them.

I have been on the property path for a couple of years now since my marriage broke up and have read numerous books incl both of Steve’s and found his most practical but that is where I am up to. I have also attended his Property Masterclass twice and the Property Power Profits W’shop. I enrolled in the Mentor program towards the end of last year.

I ahve also owned 2 PPOR, one I designed and built and had one IP.

The divorce settlement took longer than I expected and now I am cashed up ready to buy.

What I believe has been useful to me, particularly since joining the mentor program is working out what I want ( goals), and a “Why” then developing strategies ( based on either Growth – not specifically cap gain and also income). Initially I felt more inclined towards the positive cash flow but now I know my circle of knowledge, if you like, is in sub-div and or developing.

My ultimate aim is to earn enough initially to pay my own way and not need my Canb PS job. There are some spiritual ( not necessairly religious) reasons in my “WHY” around all this

All this is a journey as much personal growth as it is wealth creation.

So can I suggest spending the time on working out what it is you are trying to achieve and more importantly WHY, then work on whether this can be achieved either with property as an experience or the learnings initially, then work out how best to get there. If you measure your progress along the way,it will be easier to see where you are going , how far you have come etc..particularly if the wheels fall off ocassionally. Also if you have a good understanding of your WHY this will also keep you on track when things get tough, time constraints etc.

Good luck with whatever you decide