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It all depends upon how much information that you already have. Firstly approach council to confirm that the property can be subdivided as well as reviewing the requirements for fire separation & fire safety provisions (scope will depend on how old the building is & type of construction). Town planner may also advise what council costs & fees are applicable (there will be a development approval required to subdivide).
Also need to contact a surveyor (preferably one who does alot of strata subdivision & preparation of strata plans). They may also be able to prepare & lodge all title documentation. The surveyors will be able to give you a heads up based on your building.
Depending upon where the warehouse is located eg inner city, then there would be considerable demand (although entry price will be quite high).
Chris, it is not overly unusual to find a property which has a peppercorn rent on it. This is more commonly due to one of the previous owners having recieved a lump sum payment in return for the right to develop the site (for the leaseholder, it is essentially as good a title as freehold eg 99 year lease).
The price is reflective of the reversionary value of the lease. As discussed above, there may be some options such as buying out the tenant to relocate them to alternative accommodation (as pensioners, this may not be appealing). If you have a large portfolio you can always run this one as a loss maker.
Definitely not for the novice
You would be best served by finding out who your friends/work colleagues may have used and whether or not they were any good (did they meet the spec)? Alternatively, ask you accountant to recommend someone who is able to meet your needs.
Unless the location offers something special eg beach, demand will not fluctuate outside of the normal range. Usually, just avoid the holiday periods/long weekends when people go away.
Unless the location offers something special eg beach, demand will not fluctuate outside of the normal range. Usually, just avoid the holiday periods/long weekends when people go away.
If you are a full time student (ie not derivong an income from your labours or through the use of the items purchased) then you most likely will not be able to claim the cost of those items nor depreciate their costs.
All undergraduate education at university (for Aust Residents) is paid via the Higher Education Contribution Scheme (HECS). It is not tax deductible.
You are a full time student, not working in a field related to your studies – it is not deductible.
The course that you are doing qualifies you to gain employment in a new area – it is not deductible.Legal height is what has been legislated in the BCA ie 2400 mm. The only exceptions occur where you you can prove that the majority of the floor has achieved that height or greater (eg a sloping ceiling over a dormer window).
Do what you can to maximise floor/ceiling height – put lights between beams/joists etc.
So it will largely depend on the council inspector as to what they will pass on the day. (I have had to relocate sprinklers by less than 100 mm because they have been 'out of rule').
I generally look at 2 sorts of buildings: Vacant buildings (10-30 yrs old) or Vacant Buildings 30 yrs +
The first – basic tidy up, new lights/tearoom, paint, cleaning, Fire safety certificate, strip out partitions & refurb office space, steamclean floor/walls. Good, easy rentals.
The second, require a little more time however are suited to demo & rebuild. Issues include asbestos and delays at council but you will have a new building comanding a premium (providing that it is well designed, meets market expectations etc).
Location (main road/side street) determines some of the uses that will consider the premises and rule out others. I generally lean towards feeder roads (access is good, on-street parking, proximity to take-away/facilities).
A tenanted building has instant cashflow however, without a good understanding of commercial leases you may not fully appreciate what you are getting yourself into (types of rent reviews, make good provisions, demo/relocation clauses, ownership of fitout etc).
Playa Chicken wrote:Anthony, what are your investing rules?Steve's 1% rule is great, but what is YOUR rule? What are your investing goals? Defining these will help you know if buying this is a good deal or not.
Do some goal setting, decide what you're looking for and then go hunting, because when you run across it you will know, because it will "tick all your boxes".
Vicky
My rules: Location (well researched), potential (well researched) & price (well researched)
That is, find the area, get to know it, seek out properties which will be easy enough to improve (but not obvious to others) and know how much it is worth/what you are prepared to pay for it. Then negotiate.
It depends upon whether the house & any other structures can remain when the rest of the development is built ie if they have to be demolished then the house etc would be treated as a cost not an asset to the developer as they must spend monney to demolish.
How many units are there in the proposal and how much are unit sites selling for 7km out of Hobart?
The process in NSW is Properties are first valued by a panel valuer, then tenders are called from rea. Marketing strategy is agreed. Then the properties are put on the market.
If you want to know what is coming up for sale, become best mates with a panel valuer (if they will divulge their current jobs) or the agents in the area which you are considering.
The process must be seen to be fully transparent and not to give any party unfair advantage (or disadvantage).
Generally, there are no shortcuts.
In NSW there is a special category called SEPP5 Housing for the Disabled or over 55's. There is a whole raft of requirements with regard to building these dwellings however if you find a suitable site you can basically build them anywhere ie does not need to be zoned for medium density.
The downside is that they are more expensive to build and more difficult to sell than other medium density dwellings.
As pointed out above, there is a threshold for land tax in each state and it is independent of every other state. That way, you can spread your risk over each state and have the benefit of the threshold in each state. The threshold in NSW is about $370k, this is usually above the price of the land content of a median priced house or unit. In NSW you get a bonus as well, instead of paying 1.6% of the land value for all property above the threshold, it steps up to 2% when you have $2M UCV.
Some states (not all) allow you to get the threshold when you purchase in a trust, so this may also be an option.
Wayne, you may be required to do a short course to get your owner builder licence so you may need to investigate this. As you point out, you can do one project as an owner-builder. If you are capable, it may pay to start doing your Cert IV in building whilst you are doing your first project, that way, you will have your licence by the time you finish the first project and can continue on working under your own licence.
If you already have a trade licence, you may only be required to do a few extra subjects to get your builder's licence (check out TAFE WA, Housing industry Assoc or the WA Master Builders Assoc).
Not being critical of your comments lifex, however I too have been involved in numerous commercial decontaminations. There is some logic which does apply (occasionally) eg external work removing ac sheet and of course removal of lino tiles. The construction of a negative pressure chamber is not feasible for removal of small quanitites or for bonded asbestos unless it is a large area eg commercial floor.
There is plenty of asbestos still in the air (still measured in ppm) if you look for older brake linings on the roadside, in topsoil and in the dust inside old roofs.
Linar wrote:Contrary to popular belief that the agent MUST present ALL offers to the vendor, if the vendors have said that they don't want to be presented with offers under $XXX then the agent does not need to present offers under $XXX.The agent may not have mentioned that the vendor has already knocked back offers above the offer that you submitted.
Of course the 'out' here for the REA is that the offer must be in the best interest of the vendor, so they may not necessarily need to present every offer. The offer will have more weight if you have submitted it to the agent in writing (with an expiry date).
If the director has very few assets then you won't have a claim to much. If on the other hand, they have a house, car etc then you may have to get in asap to make a claim on their assets.
It is the latter – funds which sit in your offset account equate to having a reduced outstanding loan principal. The reason that lenders do not quote how much you save in interest is that the amount varies greatly within the month ie between payday and taking out/paying for expenses.
