Forum Replies Created
Hi Kirsty,
could you do any cheap reno's to the properties to increase your rental return/sale price?
Fresh coat of paint, install air con's, etc?
Cheers,
Ross
Sorry last line should read:
Do you have any more power of recourse if it is done by a lawyer or would you still need the title insurance anyway?
Hi Terry,
excuse my ignorance but,
I thought that was the purpose of a conveyancer?
To manage the transaction, do all the necessary searches and ensure that you have the title registered in your name or trust and ensure all debts through the vendor are cleared before passing on any funds to them?
I thought it was unnecessary to utilize the services of a lawyer?
Please enlighten me.
What are the costs compared to using a conveyancer?
Do you have any more power of recourse if it is done by a conveyancer or would you still need the title insurance anyway?
Cheers,
Ross
Hi JacM,
It is a 2 bedroom rendered brick cottage on 1000sqm block.
I'm also purchasing 1000sqm vacant land as well.
What sort insurance would I need for the vacant land, just public liability?
Cheers,
Ross
Hi D,
thanks for the advice.
The property is to be constructed in Pakenham, Victoria
My share of the units will be purchased through my discretionary trust.
Are the units in unit trust a predesignated value? or can you name the value on them?
If so would it be best to call one unit $1?
Thanks,
Ross
Hi D,
the property was built in the 1940's.
Had a bathroom upgrade in the 1970's and the stone cottage was rendered around the same time.
The external laundry and toilet were built into the back of the house.
Needs a full reno and possibly a rewire as well.
Needs new fences and a good garden clean out as well. Although most of this could be done for little extra during construction of the new dwelling.
The real estate agent thinks that the sheeting used to enclose the laundry and toilet to the house could be made of asbestos.
Waiting to get the building and pest done to confirm.
Should I stay away from the property if it has asbestos, or factor it into the offer price, as the vendor doesn't believe that it is asbestos?
Would rather over budget and come in under price, than under budget, have a blow out and end up with nothing in the deal.
Can't do a lot till next week, as everyone still seems to be on holidays till then.
Will be able to get proper quotes and a more accurate understanding of its viability.
Thanks,
Ross
After re reading the Whyalla town plan, I think it will be easiest to build a single level 3/2/2 house and renovate the original property.
Always good to get advice from people that are experienced in the field.
Thanks all
Thanks Kevin,
I had already looked over the development plan after Mattnz original comments.
The property I am looking at is zoned residential.
But I actually picked up a few things I missed on the first read through.
So thanks for the post.Ross
Thanks everyone for the comments,
I think I will probably follow Mattnz advice,
I will build a second dwelling on the 1000sqm block.
Renovate the original dwelling.
Spoke to the agent, re – value of new dwelling and reno'd old dwelling.
New dwelling on approx 500sqm low 300's
Original dwelling on approx 500sqm high 200's
Purchase price around 220k
new dwelling? will speak to a few builders. But there are house and land packages on the outskirts of town for 220k 2/1
Reno costs? around 50k, waiting on building and pest to confirm.
Development costs, additional fencing, landscaping? Requires further investigation, once town planner for local council gets back from holidays on monday will have a clearer picture. around 30k?
80-100k gross profit, less holding and purchase costs.
I plan to keep both properties at completion as rentals.
Should I purchase through my DT?
Thanks again for the info.
Very helpful.
Only concern was that the agent said he was involved in a 1500 lot subdivision that is going ahead this year.
Will this flood the market and kill any capital growth for the area.
Cheers
Hi guys.
Thanks for the feed back.
I am looking at doing this project in whyalla SA.
I don't seem to be able to find a town planner there though.
Can anyone recommend a good architect in the whyalla area?
Cheers
Ross.
Hi Richard,
when are you back at work?
would like to give you a call and discuss my plans and options
Thanks,
Ross
Hi Richard,
I have my current property with westpac and have a good relationship with them.
I have spoken to them about using a DT for my future investments and they are fine with that, they will lend to the same LVR as long as I guarantee the loans.
Would westpac do this project for me as a straight forward package?
Or will they require a lot more paperwork?
Obviously I will need, DA, BA, building plans, fully costed and quoted.
But I can do all this after I have had the offer accepted by the vendor, as I can service the property without requiring any additional income from it.
I am also looking at purchasing an industrial property with my business partner through a unit trust and leasing it back to our company. Can you help with financing this?
What is the max LVR for the above type of property?
We are looking at approx $350,000 in Pakenham, Victoria.
We have put a proposal to the vendor that we lease the building off him for the agreed lease rate with an option to buy it for $350,000 within the next 2 years.
If the vendor agrees to this are we better to purchase it asap, or sit on it, hopefully get some capital growth and purchase it towards the end of the 2 year clause?
Basically the lease costs will cover the repayments anyway.
Thanks,
Ross
Thanks, Matt and Scott.
that info helps heaps.
Will follow up a town planner asap and go from there.
The building is approx. $100k below the rest of the market as it requires a fair amount of work.
I would not imagine the costs involved in bringing the property up to the rest of the market would be half of the potential return.
Would it be better to demolish and build 3, or renovate and build 2.
Obviously all depends on town planning outcome.
Depending on total profit, and serviceability, I would like to retain all 3 townhouses and use the equity to move into the next project.
I was looking at doing this project at a LVR of 90%. Is this do able, or would a lower LVR be required?
Is it worth grabbing the property now and sitting on it for 6 months till I have the extra cash for a lower LVR?
Thanks again,
Ross
