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  • Profile photo of rufruf
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    @ruf
    Join Date: 2004
    Post Count: 14
    January 12, 2007 - 1:00 am

    Thanks Guys,

    So if I find a place; and the Trading Post is a good place to start – how do I then transport it? I’m guessing if it crosses councils i.e. the house is in one council boundary and the target site is in another, I’m going to have to get approval from each council for the transport. Or is this an MTA area and they’ll give approval for the whole thing.

    Then there’s the actual putting the house on the land I’ve prepared. This will be part of the DA for subdivision and building. I’d have to submit a plan showing the design of the proposed house, how it’s going to sit on the site and intensions to connect the relevant services etc.

    I’m going to need a crane to lift the house from the truck to the prepared footings. Sounds expensive. Supposedly these types of houses wont shake to pieces on transport – but I guess a builder will need to tighten things up a bit when it arrives; and then bed it down when it rests on the footings.

    Hmmm – I think there is a bit to consider and plan for.

    Has anybody been through this exercise before? Can anybody suggest the steps or the best way to go about this?

    Cheers

    Profile photo of rufruf
    Member
    @ruf
    Join Date: 2004
    Post Count: 14
    January 5, 2007 - 12:04 am

    Hi,

    Not easy to do at all Bridgebuff – I’ve had a couple of goes at it but get cold feet because I can’t nail it down. This is the way I’ve talkled it;

    Talk to as many REAs in the area as you can – maybe get them to show you through similar places on their books. They’ll also have an idea of what type of dwellings to build.

    Get RPDATA on the suburb and try to guestimate (not always easy as the last sale prices might be in boom times or for slightly different dwelling types).

    Also the neighbours can be an invaluable source as everybody these days seems to be up on their areas property prices.

    Also if you are talking to builders about your development; they may have a good feel for the area or have done similar recently.

    Also build in what you think the market will be like in 6-9-12 months when the development is complete. If your area has bottomed out then maybe your places will be worth another 5%-8% on top of what you think is fair now.

    Cheers

    Profile photo of rufruf
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    @ruf
    Join Date: 2004
    Post Count: 14
    January 4, 2007 - 11:34 am

    Hi AO,

    I would think it’s a must. A good building inspector will turn up any faults in the building including the internals of the unit in question but also the common areas that affect the body corporate – and if something like dodgy roof trusses or wall ties are found and the age of the building is under whatever the age needs to be for the building insurance to still kick in, you can go to the Department of Fair Trading to get the things fixed by the original builder.

    Get the experts to tell you everything they can about what you’re about to get yourself into – then make the appropriate decisions.

    Cheers

    Profile photo of rufruf
    Member
    @ruf
    Join Date: 2004
    Post Count: 14
    January 3, 2007 - 7:41 am

    Hi AJB,

    Is your gut feel that the rent is too high? If not … I’d set yourself a time limit and stick to it – say a month from now – so you can build in a worst case scenario and put it into your budget – and ask full price. The real estate agent sounds suspect if they’re not talking things over with you and offering advise and alternatives. Put some ads in the paper yourself. If there is a hospital or Uni or Tech or something around try putting some ads up on the notice boards.

    You could try discounting one of the units when your month is up and see if it’s the rent that’s the problem with them not renting. It could be your REA. Sometimes they’re pretty slack in the lead up Christmas. Maybe get another REA on the case.

    If you get the rents you’re after it could be easier to sell them as investment units down the track.

    Cheers

    Profile photo of rufruf
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    @ruf
    Join Date: 2004
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    January 2, 2007 - 12:18 pm

    Hi Tanya – I think you can do it yourself, learn a lot and save a bundle in the process; 2.5 – 3% of the average Sydney price (can’t remember what it is, say about $500K) is over $12.5K. Wow – for sticking a couple of ads in the paper, a big sign out the front and showing people through your house.

    I’m not sure where your property is but we did this about a year and half ago with our Semi in Sydney. We paid $300 for a big yellow ‘FOR SALE’ sign out the front (which is a must – we had about 4or5 leads from this), we advertised in the sydney morning herald and a couple of the Chinese nespapers around Chatswood and we dressed smartly and showed people through the house by appointment.

    We adopted a no-nonsense professional approach but told interetsted parties it was ours and we were selling it ourselves. I think most people liked the fact they were dealing with the owners. You can tell them a whole lot more about the property than an agent can. We had a strategy for closing the price with the prospects and didn’t stuff them around. They knew exactly what we were after and haggled accordingly. I think you can come unstuck if you pussyfoot around with the buyers. If they know you’re not a seasoned REA they try to take advantage; and if you don’t come back strong everybody gets confused with the dealing process. Have a plan and an amount in mind and stick to it.

    Have a chat to a few agents before you decide to give it a go. At the very least they’ll give you an idea of how the whole process is conducted. Get a valuation done. Average out what the REAs have told you and the valuation. Read a couple of books on how to sell your own place. Be honest with the buyers and just tell them what they want to know – don’t waffle.

    Give it a go and if it doesn’t work you’re only out of pocket a little – whereas if it does work you stand to learn heaps and keep the commision. Good Luck.

    Profile photo of rufruf
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    @ruf
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    January 2, 2007 - 3:15 am

    And to you Dr! May the New Year bring prosperity and happiness to you and yours.

    Profile photo of rufruf
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    @ruf
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    January 2, 2007 - 1:56 am

    I would certainly like to offer a win/win situation for all parties; I guess if they were willing to sell me/let me have access to the driveway, I’d offer them a fair price and extra landscaping along their border with the other houses on the street. And you’re right tassiecyclist, they’ll be wondering what’s in it for them – it has got to be at worst something that’s going to have next to no impact on their day to day business and curent lifestyle and at best something they gain and feel good about from the deal.

    Bridgbuff, thanks – I’ll try out your approach – an informal phone call to line up a chat with the proprietors or manager – I’ll have a chat about what I want to do and what I need from them to do it and how I think it will work out to the benefit of both of us (I’m still working on what the benefits to them will be and how to put it to them). I’ll have a chat to my solicitor and get ready with a letter of intent for when talks go well.

    Thanks for the feedback!

    Profile photo of rufruf
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    @ruf
    Join Date: 2004
    Post Count: 14
    March 29, 2004 - 6:57 am

    Hi ET
    1. Investment clubs..I’ve been to a few of their seminars “The Investment Club” is one, but I’ve always found out afterwards that they are ‘builders/developers’ trying to sell you property overpriced so I’m avoiding them now

    2. No
    3. No
    4. No
    5. Trust or IP in own name, When I started investing I talked to my accountant about doing it through a trust, or holding the property in my own name and he advised against a trust as he felt there were no benefits …[blink] I’m since reading up on trusts via books etc ..

    Profile photo of rufruf
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    @ruf
    Join Date: 2004
    Post Count: 14
    March 29, 2004 - 6:34 am

    I agree with Yack, pay out your credit card debt first as they can charge upto 18% interest which would be pretty steep on 25k. Then put the remainder in your home loan as this isn’t tax deductable and will help to build up your equity..[biggrin]

    Profile photo of rufruf
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    @ruf
    Join Date: 2004
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    March 29, 2004 - 6:30 am

    tammy,

    You have a loan at 110k with rent potential of 200pw, with an average of 75% running costs you could get ~150pw income on the property or $7,800 py.Taking 250k at current rates over 25 years @ PI means you’re paying approx $1,600 pm mortgage or 19k py for 25 years. Assuming that you haven’t made lump sum repayments on your loan and that 110k has been paid down, you’re still left with paying approx 900 – 1000 pm on the property..so still neg- geared. (unless you got to 110k by making extra repayments). So can you afford rent on a home plus $1,000pm repayments ?[cigar]
    I’m all pro building up IPs and holding out a few years before you buy your home. Time is money as they say .. the longer you have the IP the better, you have a good amount of equity in the property which banks like.. if anything the bank will like your equity and credit rating for loaning you money for your next purchase later (be that your home or another IP)…
    [biggrin]

    Profile photo of rufruf
    Member
    @ruf
    Join Date: 2004
    Post Count: 14
    March 29, 2004 - 5:53 am

    Hi,
    You asked about where you can get a longer term IO loan….ANZ have 1,2,3,5 and 10 year IO loans at reasonable rates..[blush2]

    Profile photo of rufruf
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    @ruf
    Join Date: 2004
    Post Count: 14
    March 4, 2004 - 7:40 am

    Hi,
    When I buy another Inv Prop I investigate at the time which is the best bank/institution with the best deal for the loan. I’m currently with 2 institutions and find that I have now built up a relationship with the loan mgrin the 2nd bank – ANZ. With this relationship I can negotiate deals/discounts and providing the purchase is good , get 100% finance + closing costs. I am wary though that lending from one institution will eventually get risky because the one bank will hold titles over all my property – so I ever had problems repaying one , theres nothing stopping them from selling the lot. I think 1) look for the best lender-deal and then 2) take from your current lender understanding the potential risks. I’ve never heard of a lending -limit as long as your LVR on all your properties is below a certain %, 85 I think it is. If you have a good relationship with your bank lender he/she will tell you all the algorithms for LVR, DSR etc and how they calculate whether you will get the next loan or not …[:I]
    cheers

Viewing 12 posts - 1 through 12 (of 12 total)