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If your building units. Most likely you would have a joint roof line so you wouldn't be able to build them independently
So that's darebin council yes?
For any queries in regard to the review please contact the Strategic Planning Unit on 03 8470 8465 or via email to: [email protected]
id arrange a time to go in and speak to them because res code might vary a bit if its on a main road and they are looking for that type of development. Even speaking to a town planner would give you a better idea of what is possible within the code. But have a look at other developments on the main road. If someone else has out 3-4 townhouses up on 570 sqm or less then youd have a pretty good precedent to submit something even if it is non complying. Just because they say it has to be 200 sqm for example minimum size doesn't mean 190sqm won't get through
Pretty hard to say what you could build. Tell us the street its on and which suburb and state and ill give you the link for the answers
I dunno about 100 houses, I would say I look at maybe 10ish if I already know the area and just want to double check this street is better or worse then others. If i was new to the suburb i would get your real estate agent to print you off a cppy of at least a years sale on rp data or the like. Go through and type the addresses in google have a look etc. With your valuation i would even go to valuer and ask them to give you a sample valuation that they give to the banks. I'm not saying they will. But actually looking at a valuation document ( the one the give to banks) for residential usually around 10 pages long. You can see how they arrive what they believe is their valuation. Just remember they have a 10 percent window. 5 percent either side of their "valuation," they might think that it is valued between 230/250k based on like sales in the area.. But they have to give a single figure to the banks. Some valuers might go 230k and some might go 250k but the majority would say the middle. By looking at the valuers document you can see how they rate inferior externally/internally and superior etc.
they would usually try find 4 similar sales. That means compared units with units and houses with houses etc. they would rather them be within 3 months and not more then 6 months.
If you can find 4 properties similar to yours that are renovated list them 1-4 in superior to inferior in comparison to yours. Try to be objective. Take the average of the 4 properties. Ie 200,210,220,230 (sold prices in last 6 months) average 220. Now is yours worse then house number 1 well then then you prob won't get valued 230k but if its better then number 4 well you should be above 200k and your valuation somewhere between 210-220k.
This does get harder when you have unique propeties and also when no like sales avaloable. Ie only unit block in amongst houses. Hope that helps
If you are purchasing in your own name with a money partner providing equity/cash and it is your incomes that are going to be looked at when getting the loan. Then they can do a top up on your loan. A good banker can do that anywhere between a day – week after the new valuation.. If you are purchasing through a trust or other entity then your are usually waiting for minimum 3 weeks for your equity to be released, I would allow 4 weeks.
This is still worth while doing as soon as your finish the Reno the valuer can be out there. You'll still get your money back quicker then waiting for the sale. Ie a revalue/refinance taking 3 weeks. Well sale period could be up 4-8 weeks and then you have settlement which at least is 4 weeks up to 8-12 weeks.
So your at least a minimum of 5 weeks maximum of 13 weeks with most of your equity/cash back. (Wich you can pay back to your partner). Perfect time to fit in another project
granny flat would cost your closer to 60-80k then 10-20k
but if you imagine the rent on a 2 bed granny flat to be 200 bucks a week then your getting a gross return of 13% a year on your granny flat.
Can you just confirm what you plans for subdivision is. Ie size land your demolishing the existing house? Are you subdividing a house into two blocks (but in order to do that you need to demolish the house) ? You won't be able to settle on a block until the house is demolished if that's the case.
Taperoo south australia.. Ill be listing the properties just on the Internet with a agent. A good agent is worth paying 5k if they can get your a contract before your fully approved and or during approval stage. They are a bit better at making the potential buyers feel comfortable about the process. They Also would have the experience to know what to put in a contract wtc ans whst to leave out. Have you got a backup plan for the subdivision if you can't sell the land for the price you want ? Ie can you go the full hog and build something if you had to get it sold ?
With your profit are you selling 1 block of land or 2. Either way if your real estate agent fees are 5k for land. theres not a lot of leeway if your selling 1 block of land to make 25k (at your 20% quote) just my thoughts if your incorrect with your land value pricing
I have 2/3 properties on same allotment in SA and all are going up for sale before the development is approved. My surveyor and I are 100 percent confident that the subdivisions will go through, all within regulation size etc. As long as you have submitted to council the documents with your proposed lot 704 etc. Just Market a Land for sale with dimensions with the address. You'll get a extra 2-3 months (whilst council say yes) so sell your property and as land usually takes longer then a home to sell you'll be grateful.
just remember that if you do sign a contract fyou wont be able to settle (get your money back) till usually 7-14 days after the deposit of the approved plans with the LTO. So you could sign after the first month and wait another 5 months for the subdivision to be complete
cs_rlewis wrote:Assuming that i would take out a personal loan, then these interest rates are usually about 10-13%, which is higher than my mortgage (About 5.4%).The reason I would pre pay is to lower my taxable income because my property is negatively geared.
Can I claim the interest and loan fees as a tax deduction?
Lets make put this into a example so its easy to understand. If you are earning 75k per year as your income and your have a house currently with a loan of 500k thats renting for 350 dollars per week. You would be entitled to claim the loss of the difference between your home loan repayments (ie 500k x 0.055% per year – your rent (350 x 52) and other expenses rates,insurance etc.
If your current taxable loss is say 10k per year on the property. What you are saying is that you would take a loan of $27500 dollars at (10-15% interest) to prepay your interest on your loan to get a tax deduction in this financial year (2012-2013)
Firstly your loan is going to cost your around 4k @ 15% per year in interest.
And you are only going to be able to make the claim THIS year… next year you would of already claimed in the previous year so you would have nill tax deductions besides the other expenses.
There is only one reason why you consider doing this and that is if this financial year you had a large income but you could guarantee that next financial year ie after June 31st that you are NOT going to have a larger income ie you changed jobs or went part-time, retired etc.
unless your interest rate was the same or lower then your current interest rate i wouldn't recommend it. Unless your pre paying interest this year to lower your taxable income (assuming negatively geared and or depriciation available). You would have to go work out if that savings is still greater then borrowing at a higher interest rate then your home loan rate.
How much is your interest rate that you are going to borrow the money to pre pay your interest ?
You can have the best of both worlds brendogs. Im gonna say its a pretty easy solution just develop property for positive cashflow. Buy a house, build a couple more houses to go with that house on the block, sell a couple keep 1, positive cashflow. Life shouldn't have to be hard. But to get to that stage, you need some money!
Sorry to add further. They wanted a new dwelling built on the parcel of land that i was going to subdivide off after moving the existing house because i was also going to bring in a unwanted/relocatable house and place it on the new land which would of made the deal very profitable.
Hey matt
I got a quote only 4 months ago to shift a house on stumps rotate it 45 degrees and sit it back down on the front of corner allotment. ( house went diagonally across the block) That was also 12k but did not include moving the services electrical sewage or water. All had to be disconnected before moving and then reconnected after. Also as Rob-wa said about not all councils accepting relocatable houses. they wanted a new dwelling built which was ok because there was still alot of profit in doing that as well. I think its a great idea that not many people would think about. How many old houses on stumps do you see that are in odd locations on a block and for 12k plus a bit extra you have just created a block with development potential.
Agent " Are you taking photos of that room??!", You " Are you kidding i was sending a text msg to my mum".
A pen a paper should cover it though in those instances. quick sketch up of floor plan and notes on each room. Shouldn't take you more then the 5 minutes.
My 2 cents would be that I wouldn't use your home equity to purchase a negatively geared property. For one thing I see it as even risker then buying a neutrally geared or positively geared property. Lets say you lose your job and get fired.
If you had a negatively geared property with a shortfall of 100-200 a week, well those mortgage payments are gonna keep coming and you'll still have to find that money per week. Lets say now you have got your 3rd IP and you still think paying the shortfall with your income is a good Idea lets add another 100-200 a week to your shortfall costs. Your level of risk has now gone even higher In my opinion. Plus your Serviceability has now gone out the window your costs are now 400 dollars a week towards some ip that could see some captial growth when in the future though your not sure. Can you see how that strategy has it limitations. You can still have your cake and eat it too if you are looking for properties to reduce your tax bill. Neutrally geared property with depreciation. .
Going with buying a neutral/positive geared property. It might become apparent that its a bit harder to just buy these types of properties these days. You could instead buy a property for 100k at 80 % LVR you'd need approx 25k to cover stamp duty and deposit. Your loan is now 80k. A property like that could rent from 140-200 week. Your loan repayments would be $85 weekiah @ 5.6%.
banks usually consider 80 percent of rental income as income. So if you are renting it for 140 dollars a week. The banks will consider 80 percent of that so 112 dollars.
your mortgage payments are $85 a week. So you have now added $27 a week to your Servicablity or $1404 for the year .
Yes I acknowledge the extra costs of rates insurance water etc. But for who it really counts for and who's going to lend you the money to start your portfolio. Then all that matters is what the bank view.
For something different. How about you sell your own home for 575k (assuming your 450k equity and 125k loan). Go rent somewhere for 300-500 a week and use the 440k ish (after sales costs) plus your savings and income of 130k per year to buy some neutral/positive cash flow properties. The reason why you would sell over redraw as a loc on your home is that you're maximum borrowing power will get limited by your income. Let's assume roughly 1.5 million with a 130k joint income. Plus rental income.
Selling would enable you to quite easily borrow over 2 million at under 80% LVR. That could be the difference of another 1,2 or 3 properties depending on your price points. If you did target neutral/positive properties the surplus funds could go toward paying for your rent and or another PPOR in the future which could be paid for by your property portfolio.
Perhaps you could create a syndication with advertising of "potential return of 70 million dollars, only $50,000 investment" get 10 members and now you have grand total of 1 percent to win. I can see the people running to the phones now
