Forum Replies Created
Try Ravenswood, Launceston TAS ie http://www.realestate.com.au/cgi-bin/rsearch?a=o&s=tas&cc=&c=11720116&tm=1155974182&id=103298292&f=0&p=10&t=res&ty=&snf=rbs&ag=&cu=fn-rea&fmt=&header=
3brd $128K rent $150wk
So what if you successfully got it for say $115K, divide by 2 (58) and multiply by 3 (168) so it will cost $168 per week in mortgage payments and a bit towards rates etc. So you increase the rent to $170 and see what happens or purchase for $100k ( /2 then X 3 = 150) that would be cash flow positive.Also try looking a properties with a twist ie old disused post office and postmaster residence with separate curtilages on one title, or a three bedder with a granny flat on a corner block (make separate entrance for granny flat to increase rent)
A dive of 4 units, get rid of bad tenants, keep the regular payers and reno one at a time and put 50% increased rent on reno units. (may cost a bit for the reno but mostly tax deductible in some way) Also get it revalued for increase loan amount for another deposit.These have been done in the last two years, and we are still looking.
Why go to a lender when you can get the brokers to do the leg work for you?
development assessment – ticking boxes would be great but I spend most of my time trying adjust the box to be ticked because the applicant is:
a) unable to write
b) unable to read
c) unable to do either
d) weathy and arrogant and does believe in rules unless it is the development next door that want stopped
e) unable to consider the importance of maintaining or improving the environmentThe rest of my time is dealing with objectors and their special circumstance
Then there are the non stop calls from applicants whose clients want approval yesterday because the concreter is turning up 7am this morning.
Tick the boxes….I wish!
Always go separate title wherever you can.
Rules are different from state to state and council to council.
I’ll use my area for an example (NSW). First you need to know the minimum allotment size allowable in subdivision ie 450sqm. Corner blocks may need 500sqm because of two street setback requirements. You friend Council Planning officer can advise on this, I recommend calling the council and find out the planning officer’s email. You may want to contact them directly but they are always busy and will take the easy way of answering (ie stock standard answer of minimum size and not advise on any other oppoortunities such as departures from the ules.) at least an email or letter will be answered in writing, no chinese whispers there.
In NSW there is a strata subdivison allotment called a development site – most planning officers do not have experience in these so will advise they aren’t available – well versed surveying companies are more knowledgable in these.
Then there is Dual Occupancy then subdivide after the new dwelling is completed. Then there is the integrated housing option if it is available from the Council. This allows the building and subsequent subdivision, not unlike dual occupancy and subdivision.To go any further in the possibilities would be futile unless the State and location are identified.
Sarah, I highly recommend avoiding Roseberry and Queesnstown. We rode our bikes through there years ago before the mine re-opened, the place was a ghost town. Queenstown is only marginally better but toooo many properties available. And there is no property manager in the area. We have successfully invested in Launceston, Somerset and Wynyard. Launceston and Somerset are getting noice returns and the Wynyard is across the road from a beautiful beach. Beware of the housing commission area Ravenswood in Launcestion, good returns but it will take a while before the housing commission offloads the properties – I suppose the captial growth is definitely there in the longer term.
For your first IP I recommend a stock standard dwelling. Why not Melton?, great entry prices and the stigma of the place should disappear in the medium term. Just need a bit more rental growth, but I reckon that will happen. Another opportunity is a regional city ie Albury/Wodonga. Albury, some dwellings arew advertised at 5.5-6.5% return, then if you haggle you’ll get another 1-1.5%. Wodonga’s yield is just a bit lower but we are still looking!
Best of luck.
We’ve built our own excel whorksheet so that it can
1. keep track of rent payments,
2. check off against bank statements
3. check off against property managers’ statements
4. set up to easily transfer onto ATO etaxRedesign after each financial year.
So we started with ATO requirements and worked back towards the info coming ie statements, receipts, payments
Council town planner – development assessment. [fez]
One relevant area is Council fees. Get an idea of the cost of the building value and go to your local Council and request in writing a quote of Council fees – Planning/Development Application, Inspections, Plumbing Inspections, State levies, and developer contributions. You will need to give the address of the subject land for this calculation.
As a Council planning officer I can empathise with the long delay. There can be many reasons for the delay. Is the design fully compliant with Council’s Planning rules. My advice to developers and designers is make it comply and we’ll approve. (Usually within 3-4 weeks)
The land may be close to a creek or river or classified road thus requiring approval from other authories. Can’t blame the Council for that.The first question to the assessment officer is “what is the hold up and what can I do to assist?”
Perhaps you should have used a planning consultant as well as the architect. Consultants generally know the planning officers better than architects. They re usually able to talk ‘planning speak’ to the assessing officers and work out an acceptable outcome.All being said, I believe 10 months is absolutely rediculous and worthy of contating all your Councillors, but make sure you have all your facts, not feelings, straight and clear.
Some developers call the Manager of Planning directly, and keep calling until they achieve a meeting to discuss the problem.Other problems may involve lack of resources to the planning dept due to the increasing complexity of legislation caused by the general public wanting more and more rules along with pressure from senior management to keep on lower costs and making Council staff numbers leaner, particularly in the non-vote winning areas such as planning, building and engineering.
Good luck and seek an immediate meeting to discuss any issues with the object of keeping to discuss the problems until they are solved. Start the meeting by asking to hear Council’s concenrs, then repeat those concenrs back to the Council officers so that they feel you understand their concerns. You may find some common ground that you had not considered before.
I think all of these types of unit set ups with multiple owners will require registered body corporates under the Vic state legislation. One of our units is involved in establishing a property body corporate entity using a specialist in the game.
Torrens title property subdivision with right of way could be possible but all services will need to be individually set up eg water meters, gas meters, sewerage, stormwater. Talk firstly to your local Council town planner and ask for some advice and who they recommend as a land surveyor. The whole subdivision deal may not be permitted where it is located.
I would then highly recommend getting the body corp thing happening. If you need some assistance, send me a personal message.
Searcher, I hear caravans are holding their value. But would a bank be able to sell your asset quickly for a fire sale? I think not thus understanding equity growth also equates to equity realisation. Equity realisation in worst case scenario is bank fire sale. So I believe the answer is NO for the caravan & annex.
Watch for those additional charges. How much will it cost for a changeover tenet, advertising fees, % on repairs they organise.
They are in business to make money, it is up to us to ensure we get quality service.
Remember the sqeaky wheel gets the oil.Cashflow +ve generally requires a property with twist. In our experience it meant a block of units with dodgy tenants and in need of reno. We reno two and kept two tenants on so long as they direct debited to pay rent.
Another was a 3bdrm house with a full self contained one bedder with good access. Add the two rents together outstrips the 100% loan payments.
The only other way is to have the cash in hand ready for the deperate sale with no conditions. Easier said than done.Please consult with your Council’s Town Planner and Building Surveyor beofre doing anything. Don’t head down the dev application track without arranging a meeting with these guys first. Then send in a simple letter to the Council’s Town Planner seeking Council support in principle. They will still need to do a full assessment against the respective planning regs but it would be highly unlikey that they would renege on their written reply. Their reply should also point you in the direction of the next hurdle and for no charge!
Some Councils may have difficulty with large student accommodation. Student accommodation can have a reputation of decreasing the residential amenity of an area through excessive car parking, parties, loutish behaviour and noise (music, wheelies). There is also a more serious problem of fire safety regulations as required by the Building Code of Australia.
There seems to be a quite a few proposed self storage developments being proposed in our regional centre. They are reasonably easy for Councils to approve, particularly in industrial zones. This results in quick changes in supply and demand. If there is local demand all of a sudden there will be five proposals submitted to the local Council which when built will create an oversupply and lower the value very quickly. I reckon a bit of a roulette of an investment.
Under $100k would only get a 1 bedroom low end unit in a regional centre for close to positve cash flow. We were successful in Bairnsdale but the prices have already risen in the unit complex, lowering the yield.
I would not consider adding an extra room as minor internal alterations. Some Councils have required number of car spaces based on the number of bedrooms, as well as the anticipated additional load on the municipal infrastructure such as water supply, sewerage, roads, community facilities thus the Councils in NSW may have the opportunity to charge additional developer contributions amounting to about $1000+ depending on Council. It is not uncommon for people to convert garages into bedrooms, but this becomes a problem when trying to sell because the Council has not issued a permit. Additional walls also have an impact upon ventilation and air space – a building surveyor can assist in this area as per the Building Code of Australia.
I recommend sending a letter with rough skethces in the first instance to your friendly Council building surveyor seeking advice and the requirements.To minimise council delays ensure that everything, and I mean everything is completed on the application form. Ensure clear, professionally drawn plans of location to scale and no larger than A3 size as well as showing vegetation, driveways, buildings, adjoining properties, contours. A common problem experienced by Council applications is the inadequate or sketchy information. Council offiers do not know your property as well as you do, remember there may be over 40,000 properties in a municipality spread between 4 overworked planning or building staff.
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The Council planning regulations need to be followed unless there is something unique about the land, not the development. The regulations would have been voted on and approved by Council. The Council represents the local constituents/ratepayers/community. Thus, in simplex form, the planning regulations represent the issues and concerns of the local community in the extent of minimising potential impact upon the environment (including the affect upon residential amenity).
However…sometimes there imay be a way. In the short term, the Council must show consistency in decision making, so a similiar type circumstance is need as an example. Having a meeting with the local Council planner can allude you as to whether your on the right track. If you are given some positive feedback in being able to depart from the planning regs then seek the services of a Planning Consultant who can prepare an appropriately argued case for the departure in Council/Planner speak.Improve your nordic skiing – become an accredited instructor with http://www.apsi.net.au/nordic
