My first purchase was at the age of 18 and it was a unit due to the lower entry point. I have made excellent money from it but in hindsight I kick myself for not buying land and developing the hell out of it. Of course I couldn't buy a house due to many restrictions but if I could I would buy a house.

The potential on land (not just any land) outweighs the yield you get from units.

At the end of the day do the cashflow numbers and marry that against the potential of CG. 

If the property is within 12km of the city then that's gold. Get yourself familiar with zonings and what you could do with the property.

Regards

Shahin

Check this website out. If you can do Sepp 5 (old name but everyone calls it this) then the numbers are in your favour more than what you originally proposed. 

Regards

Shahin

Firstly just because the land had a preivous DA doesn't mean you will be able to get DA again. Policy changes and you will not be able to get DA second time around. An example is the old dual occupancy code in Willoughby which changed several years back.

Talk to a town planner familiar with the council. If we are talking Hornsby – your man is Ian from http://www.glendinningminto.com.au/mpages/contact.shtml

Have you considered Sepp 5 on the property?

Regards

Shahin

Which suburb? What does the strata on each look like and whats the sqm of each? Are they the same price?

Regards

Shahin

Some use Residex and some use PR Data – these do the job too.

Regards

Shahin

In short having an IO loan helps with servicing with several lenders as many take the existing repayments instead of the principle and interest repayments. 

Do you have permanent residency or are you here on a Visa? There are restrictions to consider for non-resident applicants. 

Regards

Shahin

Hi Sam,

I'm not aware of lenders going to 95% (unless its a lender not in the broker distribution network such as BoQ) however doubt it. 

You are correct about the cons but a lot of people have a buy and hold strategy. Now if you hold onto the property for 10 years then it becomes a 'normal property'. You can do with it as you like but obviously you will no longer ascertain the massive tax benefits. 

The tax benefits are almost $10k after tax per year which over 10 years is $almost $120k. Thats a lot of money however the kicker is that most are overpriced so in reality much of that $120k disappears. 

Not sure what you mean about 'complications with resale' though?

Regards

Shahin

Not really. Investing via an SMSF has many benefits but this is not specific to NRAS.

From a finance perspective many lenders will go to 90% on NRAS properties. If you are looking to purchasing something for $320k then you will need a minimum deposit of around the $38k mark. 

Are you across the pros and cons of NRAS?

Regards

Shahin

NRAS has many benefits. The problem is that many developers understand this and overprice the property. This in turn affects the capital growth that you will get from the property because you have already started in negative territory. 

I am a fan of NRAS but there are very limited stock I would buy as the majority (particularly those in Queensland) are overpriced. 

How much deposit do you have?

Regards

Shahin

Most banks price on risk – i.e. LVR so if possible try and get an upfront valuation (its free with most lenders) to see where you stand.

Regards

Shahin