subdividing the land could cost around $10k, but if the original house is in good condition you could sell it for $20k (they remove) and that would cover your costs. For a 16m frontage it would be to tight to have 2 skinny blocks, so you could battle axe them (have the second house at the rear), or build a duplex with the front of the houses…[Read more]

posative cashflow is great and all, but every now and then we need to take a practicle look at things. If you can buy a house for $270k and it would be worth $310k giving you a $40k profit, I couldn’t buy it fast enough. $40k is a years income for some and is hard to save that money from a job. I think you could buy it move in for the reqired…[Read more]

looks like we opened up a can of worms!! we could almost publish a book from all this info. awsome.

Seano

your getting some answers which is great. what is PMing- I am new to this site. Everyone seems to think you have a great deal, which is comforting and should give you heaps of confidance. drop us an email some time buddy

Seano

gday Wayne I am building 2 houses. I will move into the first and put it on the market to sell tax free imediatly. I will then move into the second for over a year before I can sell tax free.

here is how the deal stacks up. block=$60000, building house to completion=$$190000, total =$250000. house value= about$320000. Profit (before…[Read more]

any progress???

Seano

you could get help from a builder or an architect to advise you on the process or they may have the info that you are after, a lot of you trades men will have done similar developments and will be a bundle of info if you are in there good books. You could try reading “an intelligent guide to Aust poperty developing”

good luck let us no about…[Read more]

Sounds like a fantastic idea. I could think of heaps of areas to do similar deals, it could be a great money spinner for you. You need to do a lot of work for your $$ but I asume it will be very worth while.

you will need to contact surveyers to survey the bock and give you the subdivision map on paper to take to counsil(and many other people).…[Read more]

I have read “an intelligent guide to Aust poperty developing”. It is written be a professor in architecture. It was one of the most demanding books I have ever read. It is written for building students and owner builders. I think it is the only book of its kind in Australia. It is very thorough. The down side is that it is more of a builders…[Read more]

You could sell your negative geared houses. Would you have capital gains tax? have you had much growth in your houses. you could sell you block.

another alternative if there is too much tax from selling your neg geared houses, is to sell your home tax free and move into one of the negative geared houses.

could you do a cheap renovation on the…[Read more]

it was my pleasure. glad you got some good ideas to work with. In rockingham near Perth I saw years ago signs on vacant land saying things like: for lease owner will develop. So in one instance that I kno of, the owners of a toy shop got together with a local gym and approched the owner of this land. the land owner developed a 2 story…[Read more]

Not to many reponces yet! I am a bit of an ideas man so we will see if I can help . You could sub divide into 2 or more blocks, and sell off the block/s without the house on it. By doing this you may pay off completely the morgage for the block which would increase your profit margin. and you could use all that equity to buy more…[Read more]

Not to many reponces yet! I am a bit of an ideas man so we will see if I can help . You could sub divide into 2 or more blocks, and sell off the block/s without the house on it. By doing this you may pay off completely the morgage for the block which would increase your profit margin.

alternitively you could could advertise your land for lease…[Read more]

some great tips there thanks guys

sean

If you bought it for $120000 and had a 20% deposit, the interest repayment would be about $140 per week plus principal. that leaves you with a huge return. check for any similar properties in the area, previouse sales to see if the property is priced right(they could be increasing the rent to increase the value of the property). you could get…[Read more]

sounds good. have you checked the zoning to see how many houses you can fit on it? you will need to get comparable sales of houses similare to what your building and subtract the price of the development to completion and this will give you you profit margin before tax. alternatively you could look at a number of option for your block such as,…[Read more]

you could also get the text books for a tafe builders cource.

Tool, thanks for your input. I just had a good look at my contract, and is says 140 “calander days” not working days, I am in WA. some food for thought for any one building would be to put in a clause for penalty interest(I couldnt find much about it). one posative is that I have found out that I can get out of our 2nd contract due to them not…[Read more]

Cool thanks Jo and tool. we did have 2 variations, but were told that the builder has to ask for an extension if it was required due to variations. our builder went into volantary administration which slowed things down, they have almost finished our first project after 9 months(the contract was for 140 days!). we have a second development with…[Read more]