Hi Everyone,

Just met with our town planner last night. We won’t be able to fit 3 units on the site – all because we are 4 feet short in the frontage!

Thanks for the advice on Bankwest – I will pay them a visit.

Thanks,
TK

The 650k includes interest, subdivision, demolition, buying, selling costs, and a contingency of 5% (of construction cost).

I have spoken to the following banks:
– HSBC
– St George Property Finance
– ANZ
– Westpac
So far only St George is willing to do the deal with no pre-sales, however they don’t lend based on GR. I will be speaking with…[Read more]

The development that we are thinking of is construction of 3 townhouses. Our estimates have been quite conservative – we don’t believe the profit margin would be lower than 150k.

Which are the banks that are able to lend to 75-80% end value?

Thanks,
TK

I’m pretty new to this forum so it would be great to meet others. See you there!

Hi all,

Thanks for the reply. Will keep them in mind.

Thanx again,
TK

Hi moorew,

I am also looking for a quality accountant. Much appreciated if you could PM me the details of yours.

Thanx very much,
TK

Hi Elka,

You’re right. Cash flow should look like this:

– Asking price: $140,000
– Closing costs @ 5% $7,000
– Rent: $13,780 p.a.
– Outgoings: Body Corporate ($3,612 p.a.)
Interest payment @ 8% interest only ($8,960 p.a.)
Council & Water Rates ($668 p.a.)
Assumes 80% loan
– Net cash inflow: $540.00
– Cash on cash return: 2%

Doesn’t look that…[Read more]