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It depends upon the LEP. If the council will permit 'home occupations' then you can run a business from the premises. Otherwise you may need to get a spot rezoning (which may take 1-2 years). Best to speak with the town planner at council to check what you intend (you never know, it may be permissible without too much hassle).
It all depends upon what you are after – M Comm (Prop Inv) or MComm (Dev) are great if you want advance financial modelling & project planning/management skills, the others, well….
No council approval???? This is structural work, it is a defined term (erection/demolition of a wall) – whether loadbearing or not. I would seek a second opinion unless you got the advice from council.
The other issue if there is structural work, you do not own the building. If there is so much as 1 mm of settlement affecting any other property within the strata scheme you may be sued for undertaking unapproved work, being an unlicensed builder, carrying out building work without authorisation etc. The body corporate may also need to approve any work within your unit esp the removal of walls – you may need to pay their consultant's fees for the consideration/review of the plans.
LTO – Land Titles Office (http://www.lands.nsw.gov.au) if you are in nsw.
You should be able to do most of your searches online (depending upon your state – eg not victoria).
You will probably need to get one of the online search companies to do the searching for you – they do have a phone service (I used to use Lawpoint but not sure if they are still around) – it will be hit and miss to get lease info as there is no compulsion to register leases, hence using a valuer to do the legwork.
If you are unsure where to start, engage a valuer – they have the resources to research sales (via RP Data etc), undertake searches at the LTO for registered leases, connections with agents/managers/owners etc. The quality of the report, the detail of the information provided are indispensible providing that they have been briefed correctly. This info may not come cheaply, I have been quoted $12K+ to get a market rent (I am particular about who I use) but stuck with a very tight timeframe (reflected in the val price).
As for free information – virtually non-existant, you will have to develop networks with leasing agents or do the hard yards yourself talking to tenants (discarding their bs) or undertaking searches ($) – not all leases are registered so it is not a simple task for the unannointed.
Try Home & Housed in Adelaide – I have used Mel several times over the years.
One off $8k gain, long term 25% rent reduction. It don't take long to come out behind unless you have a new property on an extremely low rent base.
Since when did plasterboard or cement render need an etch primer? AFAIK it is used only on galvanised metal to get to a clean/oil-free surface – what are you on about?.
As a painter, use your rule of thumb as to what the paint job is worth (two coats), why does the undercoat cost $1500 if the other 2 coats are worth $475 each – hasn't the builder allowed any prep? Use your skill to negotiate either a realistic credit ie about $4-5k or pay for a 3rd coat at $475 + margins.
If the paint manufacturer will only warrant the paint with an undercoat insist that the builder either comply with the manufacturer's recommendation or provide a specific warranty on the paintwork equal to that of the manufacturer or advise that payment will be withheld until he complies with the standard (not his specification/quote – not your problem that he short-changes his clients by providing sub-standard finishes, what else has he left out?).
Could I suggest complete your undergrad degree, get a few years experience in your field, then attack your PhD (all that acedemia without experience is worthless). Combine your PhD with a scholarship, a gig lecturing/running tutorials to supplement your income.
4 A DD clause with specific issues eg: satisfactory building/pest inspections, finance approval – this way there is only limited recourse not open slather eg mum didn't like it.
Yes if the work was unlicensed, however there is nothing stopping your partner and yourself taking turns at being the licence holder.
Assuming that you are able to buy including costs for $250k, $12.5k deposit – $237.5k loan at say 9% interest only (you will be up for loan mortgage insurance).
Interest: $21375
Net Rent: $285 x 50 x .9 = $12825
Shortfall: $8550 (or $165/wk)I'd suggest getting a quantity surveyor to provide a depreciation schedule (but as a guide you could probably get about $4000 pa(2.5%) if you could prove construction cost and depreciation on a straight line basis (not necessarily the best method but the QS will advise).
If the property is in a coastal/humid area – forget about it (water evaporates more slowly in a hmid environment). If you are away from the coast (the manufacturers have charts to indicate the best locations for evap cooling).
Yes they are cheap to run, they are simple so quality does not vary much brand to brand (unit is comprised of a rotary fan (drum), straw filters and a drip tray). Quality varies once you are talking about the larger commercial units.
You will have $200k equity between the total value of both properties. Your total borrowings will be $350k + $500k (the value of new premises). You don't mention any savings that you will be contributing (to cover legals/SD costs).
Total Assets = $450k + $500k
Total Equity = $200k
Debt = $750kLVR = 750/950 = 79%
On the other side of the coin:
Net Rent: 50 wks @$490 x 90% = $22,050 pa ($850/fortnight)
Interest only loan: $750k @9.0% = $67500 pa ($2600/fortnight)
Shortfall (out of your pocket) = $45450 pa ($1750/fortnight)Other issues to consider – job security, 2 incomes may be needed to cover the shortfall (about $900 per week/higher when you have no tenant), interest rate rises etc.
If the new premises isn't going to be rented out, then you will only be able to claim the interest expense & costs on the current townhouse, not on both properties.
You may need to consider renting out the house which will have the greater expenses.Hope that helps (or scares the pants off you).
Cutting down the cabinets is the easy bit, how do you intend to handle the doors? (unless they are plain they will need to be specials)
And even better, if you put down 10% ie $30k, you would be making 400% (4 times your initial investment).
There must be a reason that there is very little virgin earth in the CBD of any city – maybe, just maybe, that there is more to property investment than owning a scarce piece of land surrounded by improved properties.
The lowest level of risk is possibly owning a vacant site (this also yields the lowest return ie land rent) however when you expose yourself to a higher level of risk, through the development process, you gain both the return on the land as well as a return on the asset. The greater the development potential of the property, the greater the total return.
Basic development theory declares that if you pay too much for the dirt, the rest of the project is immaterial. So sure, you can invest in a vacant site but if you do, you must always buy it at the right price and have no expectations of a return other than a capital gain at some point in the distant future.
Ask for a more senior accountant to review the tax return with you before it is lodged.
There are a few issues to consider – as pointed out above, if it will cause the loss of other tenants and greater vacancies your may decide against it, secondly – do you have a moral objection to this business? Will council permit the usage (severely restricted by location & zoning)?
Generally go for a net rental – like brothels, they prefer minimal intervention by the owner and will look after their own maintenance (they prefer to use their own contractors who do not feel intimidated by the surroundings), once established they remain in the premises for a long time due to difficulties in relocating.
