Thanks Terryw, no I wasn't that was what was confusing me!Scott – I think this is what has happened.So when doing a feasibilty study do you look for the IRR to be over 20% or the MDC over 20% or both??

You could always make some changes to the property to try to up the rent. I agree with Terryw though, if you are unsure about capital growth etc I wouldn't jump into a property that is that negitively geared. Good luck.

Hi Luke,Council fees really surprised me first time round. If you are splitting the title budget around $20,000 in council fees (depending on many different things) and lots of time so more holding costs. Have you made sure the zoning is consistent with your plans? You can check out the property you want to purchase here: http://services.land.vic.g…[Read more]

Seems to be a lot of effort for a very little profit. Have you progressed further with this deal?

Would you not consider doing the development yourself?

Hi alice10 – I pay would say around $600 to get a feasibility study done.

I'm not that into passive investing so my first thought when I read your post was that I would buy the $400K property, rent out the house and subdivide the land – selling the block to take a huge chunk off the mortgage thereby creating a +ve cash flow property.

Hi Alex,This is my partner and I. It's not that he is not interested per se (although I'm sure that his attention span has something to do with it!) but I am just much better at finding real estate and seeing what it COULD be, not what it is or what it is being sold as. I don't usually talk to him about anything until I can package it all up and…[Read more]

Yep, just spoke to council. They said it is doable but would have to look at the frontage of the block to make sure it is not too narrow. She also said that we could sell the back blocks with just the easment in place which would save us road cost but we would probably have to drop the price of the blocks to reflect the fact that there is no road…[Read more]

v8ghia wrote:
Hi Jess,Some lenders will take more than a 20 % variance on your figures upwards and use – but needs to be explained logically – ie 1 st year had XXX amount of set up expenses, and as a result of our business plan we have expanded our service area, and increased revenue as forecasted"  –  the lender may even pas out from shock at s…[Read more]

Thanks for your replys!We haven't actually had our '10 financials done yet, the $45K figure has been lifted off my MYOB accounts (I keep very tidy books). Does this change the low doc thing? I don't want to do things dodgy, would prefer to wait if that is the case.Would it be better to go straight to our current bank instead of a broker? We have…[Read more]

We have been in business since April '08, as you can imagine that tax return wasn't awesome. Then the '09 return wasn't grand either because of the set up costs – lots of capital purchases etc.The '10 return will be better (around 45k clear) but that is for both of us (we are partners in the business) and we have 3 children. On the up side we owe…[Read more]

Hey everyone,My name is Jess and I have been "playing"  the game of real estate for about 6 years now. Feel like it is time to step up a bit and feel like education is the way to go so thought this forum would be a great starting point.I live in the Macedon Ranges (about an hour out of Melbourne) and am more interested in rual properties rather…[Read more]

WOW SuperSleuth what a great post. Very confronting but feels very true to me.I went to Ysa free seminar last week and loved it, but I too believe that many people attend workshop after workshop and never really do anything. The thing I think may be worthwhile about these sort of seminars (especially Carly and Ysa's) is the opportunity to find…[Read more]