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Council approval for units.
First arrange a meeting with the local town planner. Give the property address with the meeting booking so that some preliminary research can be undertaken by the town planner. Don’t always bank on the research being done though. Ask the planner are there any restrictions on the property such as flood potential (may need a minimum finished floor height certified by a land surveyor), contaminated land, land near a river or creek, any additional Govt Authority approvals, heritage item or area. The big advice will be the specific planning controls such as setbacks, car spaces, height limits, material restrictions, fences, private open space provision. These planning provisions suck up the available land space for your planned dwellings.
If all okay, then approach the neighbours to find any concerns. Town planning must take into account any objections lodged against proposals. If the neighbours know what’s planned they are less inclined to object, however sometimes this does go pear shapped. If you feel that the neighbours are a bit unreasonable then definitely arrange some meetings with the local councillors to head off a potential refusal of an application and see where they stand on unit developments.
Then get a town planning consultant or very experienced designer to submit your planning & building application.
I reckon if your design complies with all the Council requirements then the approval time can be around three to five weeks depending on the municipality. Anything complex or objections can blow the time out to 3-6 months. Be prepared to be flexible in the design to take into account any additional Council requirements via engineering, heritage, traffic, objections.Improve your nordic skiing – become an accredited instructor with http://www.apsi.net.au/nordic
I reckon getting a professional depreciation schedule done. Costs a bit depending on location but really worth the $ if the house is new-newish. Getting a $5k dep deduction for a 18mth old transportable $230k house was amazing. So if you can get say $4k then I reckon it’s worth about $30/week tax-cash in hand. Then you’ve got the loan interest on the property. Sounds a reasonable strategy to me.
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Hey redline, what do you mean three fell down. Get gezumped or $ fell thru?
Just purchased one bed unit in Bairnsdale next to river for $77k renting at $105. I can’t beleive some of the deals folks are finding. Amazing searching, well done! Geez, I reckon we do well finding a couple a week above 5% in Albury/Wodonga!Improve your nordic skiing – become an accredited instructor with http://www.apsi.net.au/nordic
For the interested property use $29k for non loan purchase and borrow 80% of 145k thereby avoiding mortgage insurance, set aside 10k for purchase costs – stamp duty & conveyancing fees etc. That’s a total of $39k leaving $61k for the next IP.
This is a more conservative approach but places you in a less vulnerable position if interest rate rise. It has the advantage of already setting up a base of equity in the property for future strategies such as a cross collateral line of credit. The system does not suit everybody but helps me sleep at night! It certainly is not a get rich quick system in IP. Just more sustainable I believe.Improve your nordic skiing – become an accredited instructor with http://www.apsi.net.au/nordic
Gather all your information such as payslips from employment, asset list with valuses, property addresses.
Work out your vision, where do you want to be in 5 years – number of IPs, or setting up for retirement eg $yr needed.
Consider using the equity to set up a line of credit from the bank. Use the line of credit as the deposit(5%) & 15% of property loan, then set up a separate home loan mortgage for the 80% of purchase price. Use the line of credit for the stamp duty and conveyancing fee. You will need to carefully watch and note each purchase and deposit into the line of credit for taxation purposes.
Then approach a bank with your vision, asset list et.al, and a request for a line of credit. Request the limit they are willing to avail to you. You don’t have to use it all!
This technique avoids mortgage insurance but limits the number of IPs to purchase. Good excuse to have a rest while the IP values go up and then re-apply for an extensions to the line of credit.Improve your nordic skiing – become an accredited instructor with http://www.apsi.net.au/nordic
For renting improvements visit the local real estate agents who manage rental properties and ask what their clientelle want in a rental property. Think like a renter, what would you want – OSP, secure garage for extra storage,real clean bathroom and toilet, adequate lighting, adequate space in kitchen for dining, adequate food preparation space, bedroom BIRs, secure and safe access. What type of renter do you wish to rent to?
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We given a serviced apartment, Melb CBD central, a try with good yields. Only just settled because of the difficulty in finding finance. If you’ve got cash you could certainly bargain down with short settlement. I’m sure vendors would jump at the chance of a quick sale.
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Finally settled on the Serviced apartment FIVE extensions to the settlement date because of finance institution difficulties.
We shall see what happens from here… Next is to get the payments from the leasor arranged.Improve your nordic skiing – become an accredited instructor with http://www.apsi.net.au/nordic
A1. Contact your friendly Town Planner or Town Planning Customer Service Centre at the relevant Council. Each state and some councils have different rules.
A2. Where is the property – Council and State? I can then give further advice.
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Back to the original post…
Yep, I’m having trouble with getting finance in time. I feel the financial institution is giving us the run around to strig us out long enough for desperation just before siging penalites apply and so we wouldn’t consider another lender.
The “mobile”banker has become nothing more than a submitter of information to those who make the decision. We are now nearly two weeks from making our initial application for finance. They promise an answer in 24-48 hours on their website I believe. Still waiting….Improve your nordic skiing – become an accredited instructor with http://www.apsi.net.au/nordic
Still waiting from a response from THE bank. Starting to get the run around from the mobile banker. More like they’re the run around clerk until it gets to someone capable of making a risk call. How could they loose with LVR 70% and DSR at 36%? Anyways, the PI has a 3% annual increase plus independent CPI review every 5 years. We’re in for the long haul. I had the legal go over the contract and lease. Anyways, running out of time, time to sniff the mortgage brokers for the first time.
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Thanks Scott & Mel
We haven’t rented it out yet, no settling for another 30 days. I guess we’ll wear the 2.5% if we reno. Again many thanks.Improve your nordic skiing – become an accredited instructor with http://www.apsi.net.au/nordic
Many thanks Greg for the advice. We are waiting on the usual CBA response (promise 48 hours but still waiting after 6 days) It will be interesting to see their response. We intend on applying for two IP loans in one hit (the other being a cheap 80k 1 bdr unit). I will sound out our local Mortgage Broker tommorrow. I haven’t used a MBroker before. We’ve just settled on #3IP and have the living home fully paid up. I’ll keep you informed.
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Be aware that zoning regulations are diffeernt from Council to Council in NSW. Medium density development has an environmental impact such as additional noise and car parking. Expect potential resistance from neighbours. I recommend getting them involved before they are notified by Council of a MDH proposal. Our Council does not generally permit a MDH next to an existing block of flats/MDH because of possible future urban blight and increased street car parking usage. The exception is if it is within 400m of a weekly shopping facility or public transport.
Our council does not generally suport battle axe subdivision allotments. I have seem some really poor urban blight examples creating lower property values as a result. Not so good.Send a friendly letter or book an appointment with the local town planner way, way way before the sale/auction to get a free indication of whether Council might support the proposal. Some people submit a Planning/Development Apllication at this stage and make the purchase subject ot Council approval. Doesn’t work for auctions though because Councils generally take four weeks to make an official determination.
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Whoops, we’ve been doing wrong way around all this time!?
We have
1. Found property
2. Made offer
3. If accepted then go find finance.We’ve done this 3 times and am currently doing again right now. I hope we get approval!!
BUT how do you apply for finance from bank when they want to know what the property address is? Seems like chicken and egg stuff to me.
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