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Try your local council: get the LEP, zoning map and contributions plan.
Firstly, why take it back to bare render? Once you have stripped off the paint (WAFMAT) why do you need to wash off the grease?
Light sand with sandpaper on a broom handle/pad, heavier to remove any loose material. Sugar soap to remove dust/grease etc. Patch & sand. Paint with compatible paint. Buy a few drop sheets (yeah the real heavy ones), buy some disposable masks, decent brushes/rollers as required – the cheaper ones lose their nap or bristles quite quickly.
As MP said, if it is on another title then it is not your ppor.
I had a chat to one of my agents today, he noted that there were a few commercial sales by the banks and there were two sales listed in the local rag as 'MIP' sales. They are out there, just look for them. You have a better chance of negotiating if they fail to sell at auction.
You might need a combination of services ie a full-service accountant which incorporates legal, financial planning, estate planning and accounting that way the information you are getting is coming from the one common source which has your best interests at heart (it is not trying to sell you a product but to structure your arrangements now and in the future).
Check out the post in the heads up forum or contact agents in the areas which you are interested – some will actually tell you what is happening (they aren't all bad- it is in their interest to achieve a sale after all).
My local advised that they have had the best and strongest month in July and there are still a few weeks to go!
Unlike the US, mortgagee sales are rarely advertised as such as the vendor is still the mortgagee not the bank – they just take possession and run the show.
For a ballpark, use your median house price (really means jack) then deduct the cost of the house/improvements to establish a median land value. Then remember THERE IS NO VACANT LAND IN CARLTON!!! (you would be paying a premium for it if there were). LV would be approached on a property which would be considered a 'pull-down' provided that it does not have any heritage significance.
As the others have pointed out – are the figures realistic? Are you paying a premium for a rent guarantee (if any)? Do the calcs take into account any depreciation?
The answer depends upon what you want out of the investment – does it fit your profile? there are no right or wrong answers here, units or houses can be good or bad (it could be great for you but a dud for the next bod – we are all different).
The valuation provided reflects the brief – if you ask for a market valuation for the purpose of purchasing a property, then you do not need to provide a 'purchase figure', you are paying them to come up with it.
If on the other hand a bank is instructing the valuer to provide a val for 'mortgage purposes', they are essentially confirming that what you have paid is market or below market value they will not provide a val which is higher than what you have paid as you have just proven the basic valuation tenet of 'willing buyer/willing seller'. A bank val is often done on a drive-by basis, as noted above to confirm that the property exists. It generally does not include a thorough inspection of the premises.
Valuers have great hindsight – all of their valuations are based on what has happened in the market ie backed by sales evidence (completed purchases) then they take into account more recent transactions such as what has recently traded in the current market (through networking with agents). They are not paid to crystal ball the future price of a property (unless they are involved in assessing an off the plan development).
If you are so concerned about the bank not financing the value of the property for what it is worth, buy it on a line of credit secured on another property, then go to the bank to arrange finance on the property for what it is worth not at the purchase cost.
I'd argue the toss about S94 contributions – the original developer probably paid their contribution for the creation of 10 units, your work is creating separation of title to each premises. The schedule of council fees should be on the council website, contact a surveyor to determine their costs including preparation of the strataplan, submission to lands dept (creation of all covenants/bylaws etc), any legal costs etc.
I'd be surprised if you could pick it up any cheaper than 3-4% on net yield. Many of these sites are hotly contested – do your research. Find some similar sites in Robina ie same zoning and similar size to get a feel for price, check whether they sold vp or with a lease on foot. Then add for the quality of the lease covenant. What sort of rent review is due upon exercise of the option – fixed, cpi or market?
Is the usage a conforming use? ie will it be priced as a development site with a dampener as the tenant will in all likelihood exercise their option and lock the site up for a number of years?
The question is a bit wide – but do you want applied finance, land economy, feasibilities, DCF/NPV, valuation methodology, property management, Facilities Management, Life Cycle Costing, Due Diligence, Asset Management, portfolio theory or just the basics?
Vals can generally be arranged within 5 days of recieving instructions – there are plenty of valuers around, check out the australian institute of property's website for contacts.
PS only a valuer can give you a valuation, real estate agents can provide an appraisal (big difference).
Is negative gearing all that it is purported to be by 'the mum & dad investors'? As Duckster points out NG is becoming less attractive with lower tax rates – so for those on low incomes it should be a no-brainer that a loss leader with little offset should be avoided. It is more beneficial to park your money in a bank/fixed deposit to earn 8%+ at the moment compared to -5% or more when including capital losses, high interest rates and increased charges by the authorities. There are more disincentives now to invest in property compared to other asset classes.
However, we are not all the same, some see the shiny side of the coin (or are dazzled by the lights/spruikers) and believe that you can make money by losing.
The last budget has made many more property owners 'high income earners' and not big Kev's battlers thus losing out on other benefits eg baby bonus, child care rebates etc. There will be alot more pain to be borne by 'the rich' and even more by the 'renters' should there be major shifts away from the government encouraging investment in housing (and not through the half-cooked housing investment strategy'.
(ok rant off).
Clubby, you have missed the point totally. No two properties are identical therefore if you want the correct analysis you must undertake a methodical valuation of the premises ie engage a valuer if need be.
Stats are just that, an analysis of the sales in an area without taking account of what data is contained (bar separating out units from houses) – there is no consideration of land size, house size, age, specific location, new developments, vendor terms, zoning etc.
You simply cannot rely on the basic information which is reported to come to an accurate or reliable yardstick by which to measure each property. How, without thorough analysis (including site inspections) can you compare two houses? They both may have 3 bedrooms/2 baths & a slug but one may be larger/newer etc but on the main drag (side street address) and the other a dilapidated shack on a good street..
Your only basis for comparison is direct comparison by removing all improvements then adjusting for differences in location to get you back to a $/m2 for land. Then develop your model with the knowledge that a 600 m2 block will cost $500/m2 or whatever plus the cost of the house & improvements.
Read a good text on property such as Real Estate Fundamentals by Gunther (probably out of print) but well worth the read in order to understand the methodology.
It will depend on the zoning and what is permitted under that zoning. In NSW if it is close to amenities, transport & services you can erect units for the over 55's basically in any residential zone. If there is an appropriate zoning, your house probably has the same zoning but you can check out the zoning map at council. Speak to a town planner (possibly at council).
Miners generally aren't buyers in the area that they work (they are itenerate). How long is the boom going to last (until China & India run out of money). Will the mines pack up and go? Yes, eventually. You will need to find out the life of the mine, its viability and whether there are any other industries which will survive without the money from the mines.
No two properties are directly comparable. How do you compare a 3 bedroom house on 600 m2 with a 2 bedder on 650 m2 which sell for the same price? You must compare like for like! Basically you need to develop your building cost for each house, adjust it for depreciation/age then deduct it from price achieved. Deduct the cost of other improvements (garages, paths, landscaping etc). You are then left with a land cost (which still isn't comparable as you then need to consider amenity, slope, orientation, distance to services etc). Once adjusted, you can then get back to a $/m2 for the land. This will give you the basis for your land cost in an area (adjusted again for better/worse locations to the subject site), then just add a building etc (and depreciate to the required level).
Alot of money for solicitors spent on chasing a penny – that's why you go to the obudsman.
You might consider looking at rental yield as your yardstick – as prices stagnate and rents increase, yield increases as well.
