Hi,

If you are interested in developing then Troy's information can be a great help.

It's hands on, practical and well worth it.

– Steve

Hi,

First of all, well done on completing your pre-purchase due diligence.

Now that something has been flagged, the next step is to weigh up its significance. In this case, given that it relates to the title and may impact potential use, I would rate it as worthy enough to get some formal legal help.

I suggest you make a preliminary phone call with a local conveyancer or solicitor and then see what they recommend.

You could also call the titles office and ask them what it means, and whether they can provide you with some literature about notes on title.

Hope this helps,

– Steve

Hey Connor,

Welcome to the forums and thanks for making your post.

A little tip… you'll get more replies if you write shorter posts 

Geez, your accountant wasn't much help, was he?

I think you are on the right track weighing up your options. The investing mantra is: make the most money, in the quickest time, for the least effort.

You also need to consider the opportunity cost. In this case it is the interest you could save if you sold and paid down debt.

My gut feeling is that, given the market is flat, value adding is probably quite risky. What will bring the market back to life? When might that happen?

Before you do anything though, you need to sort out the key emotional issue: are you ready to sell (given the family history)?

Finally, bear in mind it takes many months for a subdivision to be finalised, so it might be smart to get that underway soon if you want to pursue that option.

– Steve

Hi,

I think the process is three- fold:

First is identifying the product you desire. This means you need to scope out the size, layout, position, construction material, etc.

Second is the cost. No doubt there will be various options, and it is up to you to decide which is best for form (value) and function (use and quality). 

Third, you need to work through the investing mechanics behind the additional growth and income returns that you expect from the granny flat.

Income

What is the ROI on the spend? For example, you are going to spend $80k for how much extra gross rent? If it's (say) $200 per week, then the ROI is $10,400 / $80,000 = 13%. That's pretty good, even if you are financing it at 6% or so.

Growth

How much extra value are you adding to the property given the $80k (or whatever) spend? Some imputed value comes from the higher rent, but what about the capital improved value. Just be careful here as the property might actually  be worth less if your target sales market doesn't want it.

For instance, if you add a granny flat (and lose the yard), then you are pretty much saying you want to sell to an investor (for return) or to someone who want a granny flat (teenagers, granny, etc).

Food for thought…

– Steve

Hi there,

Here's a couple of suggestions:

1. Play Monopoly and Kiyosaki's Cashflow games. Play for fun, but also look at various strategies.

2. Attend property networking events. Check out http://www.propertymeeting.com.au to see if there is one near you.

3. Try to make my next live get together in March next year, if you can.

In regards to a strategy, I still believe starting cheap and learning with a regional positive cashflow deal is smart. You may not make a lot of money, but you will learn a bundle.

Good on you for trying!

– Steve