Hi Kressley,
Your idea has past my mind many a time, we have 4 houses in Isa and we have a DA in on one of them at the moment to subdevide and build a duplex at the rear. I spoke to some builders last year in Isa and was qouted $1200 sqm approx, probably gone up more now. Xstrata are crying out for quality accommodation in Isa, if Summit Resources get the go ahead for uranium mining in the area, it will put more upward pressure on Isa. We just had a bank valuation on one property we bought 5 months ago for $165,000 and it came in at $210,000, property prices are going upward, thats for sure. The thing I notice in Isa is trying to get a tradesman to do anything, even a quote is a problem, can take months before they will even give you a quote, KP has the right idea of flying in a builder for his project.
Don

djr

Hi,
You can contact the local council in writing and advise them you will be taking adverse possession and will pay any rates owing, plus address all future rates to you from now on, most likely rates will be owing if abandoned and the council will be happy to have some money paid.

These are properties that go to auction for arrears in rates, You then take possession of the property and hope that the owner does not come back for 12 – 30 years depending on which state you live in.
You should keep all records, for when you apply in the future for title, you can even rent the house out for income. No one else can take possession of the property, only the owner.
If the owner comes back before the time allowed for possession, you have no legal right to the property. You may be entitled to a refund from the owner for rates paid, but that is all.
Situations like this are rare, but do happen and the person taking possession acts as if they are the owner.
As always you should seek legal advice, but I know what most solicitors would advise.

Hope this helps.
Don

djr

Hi Jon,
I have sent you a PM, check your inbox.
Don

djr

Hi Jon,
We have just come back from Mount Isa on the weekend to view our latest purchase of 3 houses on one title which we are in the process of splitting. While up there we bought another house which will rent for $300 per week and will be building a duplex at the rear of property hopefully next year. My wife and I spent the day with our property manager touring around, after seeing it first hand, Mount Isa is a great place, has everything you need, most big businesses are their eg Subway, Macdonalds, Bunnings, Coles Woolworths and the list goes on. Business don’t open up in towns unless they think its profitable for the long haul. We went to the local club Buffs and it was the Octoberfest night, standing room only as the night wore on, went to a 6 year old subdivision ( can’t think of the name of suburb ) with lovely near new homes. Xstrata I believe will be doing open cut in the near future, which I was told the minerals go for 19klm, they also have a acid plant with 30 years of life making fertiliser, also Summit Minerals is sitting on the 3rd largest deposit of Urainium 20 odd klm outside Mount Isa, I have been watching the last 6 months in Mount Isa and I think rents are going up more,after seeing the town first hand, I can say nothing bad.

Hope this puts your mind at rest.

Don

djr

Hi Everyone,
We have a SMSF and have used it in partnership with ourselves, we purchased a property and did not have to borrow at the time, doubled our money in 14 months and sold. Here is the good part, super fund is only liable for 15% CGT on 50% profit which is split up amoungst 3 partners ( my wife, myself and SMSF ).My wife and I are taxed at usual rate on third of 50% profit. At the time the property was blue chip, but no income, so it was good to own it outright. Not using it for property at the moment, but handy to have as a partner.

Don

djr

Hi George,
Good on you for taking a profit, I was fortunate enough to sell 3 IP properties in Brisbane in the last 4 years for a profit of $500,000.00, started with $5000.00 deposit for 1st, borrowed the rest, sold first for a small profit, bought another and trebled my money and sold, bought another and doubled my money in 14 months. Have just bought another in Mount Isa returning $43,000.00 a year for $400,000.00 with development potential see https://www.propertyinvesting.com/forum/topic/19796.html

By the way the second property I sold to a developer and it would have gone down in price by $80,000.00 since he bought it, just good timing or luck on our part I guess.

So as to selling all your IP, I say go for it. Something else will come along if you want to get back in.

Cheers
Don

djr