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Were you given a form 1 by the real estate agent?
This should of contained a copy of relevent council searches.
If not then you might not be in contract. Even though you have already settled.
That price is about right as well. Savings can be made with your landscaping plan. Usually I do that myself as some can charge $500-700 for landscape drawings
You need to get into contact with a good independent town planner. They will put your fears at rest and be able to give within reason sound advice. Look for someone located in that area as most likely they have put in applications before on behalf of clients and will have a idea already if they can get away with it.
I wouldn’t say this is a rule. But if a area is zoned ie 280sqm for min block size. Each block is gonna be 276swm. That’s a very small percentage less then the original. I personally wouldn’t be worried but I would submit with a covering letter from a planner to alleviate your concerns. Most planners have post graduate studies and are smarter in a planning sense then the average planner that works for a council getting 60-70k a yearNegotiating good deals, creative deals you have to look at the buyer.
If you have a family in a family home and they are selling there’s Buckley’s chance you’ll get early access as they would want to stay there till settlement. So you need to look at investor owned properties or already vacant properties.Offering unconditional with early access and long settlement is one that has always worked for me. a 4-6 month settlement with early access lets you get in do the work (even on unlivable properties) get it up to a livable dwelling or high standard.
You can get finance out on contract price and instantly revalue the next day after settlement on a higher valuation.
Or if you had a licensed builder do the work with contracts in place you can get a on completion valaution on the works and on completion of the works draw up to that limit. All whilst not paying any bills or rates or mortgage on the property.
I sometimes didn’t even hook up electricity, just had a generator for power as your only using it for tools.Which bank/institute goes to 6 and 10 respectively Richard, before turning commercial?
I’d say as a beginner whilst LVRs down that low 30-50 % would be great, realistically would be unachievable for a beginner. More likely you would find yourself in the 65-80 percent range and only 80 percent if you were building residential under 4 dwellings or so.
Full DA shouldn’t be that costly.
2 homes – 2-3k plans
1k-1.5k for a cover letter from a town planner
$500 for a contour plan
$500-700 for council application feesDevelopment polices are only put in place as guidelines. You can submit anything you want to council but the majority of the time if you play within the rules bar like 1,2,3,4,5 different things then the merit of the proposal out weighs qualitative measurements like being 8sqm short. As if the block is still able to be a functional and usable home then it outweighs those small discrepancies.
Even a average planner will be able to write a 2-4 page cover letter addressing your DA, that would grant you approvalMy advice would be to get some money together yourself and put yourself in a position to leverage that money to buy renovate and sell a property. Because if you are confident you can make a profit then putting down your own money wouldn’t be a issue. Unless you had some skin in the deal and something to lose. A investor isn’t going to take a punt on you just because you know you can do. You have to show people you Can do it. Majority of people are cynical, at this stage whilst it is still commendable that you are making a effort. Unless you have some background trade skills ie your a builder and your not letting people know that. Because that would be a more reassuring quality that the physical aspect of the renovation would be taken care of.
In my honest opinion. If I was going to invest up to 400k I would be looking to leverage it a bit better then making 40% of the profit on a 400k investment. That means your looking at buying under 350k properties with some money in there for renovations bills sales costs and marketing and a contingency and I will say interest (because if that money is out making a return then it’s not in a offset account etc saving you money).
Then I would look to the person in charge and look at there background history. How many properties have they renovated. How much profit they have made. can you give me some addresses. I would then use RP data to confirm that the above addresses were bought and sold at the times for the prices the person said. I would use a building estimate on the costs of works and level of finish those properties displayed to estimate the renovation budget and to back up the profit that was stated for those projects.
I would want to know if your a beginner or a seasoned renovator with the tools and experience to manage my money effectively and produce the results that you say.
REST software for property managers
Plus you have to acknowledge that you will never be able to make the best possible start. You should though make a start and you will learn and become more experienced through repetition and practice.
You should however aim to not lose money.
Don’t buy a over valued brand new home in a fringe location that won’t see any growth for the next 10 years besides CPIWell if you are unfamiliar with property investment or just investments in general. I would read up about the topics that interest you. By the fact that you earn jointly over 200k I would just avoid renovations. If you have the financial capability you can do something that leverages people’s time better. Property development for example, subdivisions.
A few $10-30 books by some of the bigger names in property investment are going to give you a background of the different aspects.
Sometimes fixed loans will not let repay over a certain amount per year. Ie only allow $10k extra to be repaid every year. So that is something to look Into. As might restrict the dumping of that money onto your IP.
My thoughts are that you could comfortable use that 150k to buy either. 1 – 600k property at 80 percent LVR
Or 2 300k properties at 80 percentIf you have the ability to stay at 80 percent LVR from a risk point of view it would be better.
Trusts could be useful in your situation with 3 kids. As you are still able to distribute small amounts of income to young kids. Although under $500 now. Over a long period that could be a lot of additional money. Please see a accountant regarding trusts. The most common trust you would use would be a family discretionary trust.
Make sure you buy undervalued properties in ok to good locations. Look at transport routes. Close to public transport or lifestyle assets is going to critical for properties in the future. Ie baby boomers retiring to the beach locations or young professionals who don’t to own a car cause of the transport options.
Cheers wilko
Security substitutions can happen. But most banks only do it for PPORs and require same day settlements. And even then they still do updates on your pay-slips or incomes.
I think you should run the numbers first with someone at the bank first.
You might be able to afford more then you think. Once future rental income and deductions are included.
If your income is lower, possibly not the right stage to be purchasing again.
Sold 2 properties last year.
And have so far purchased 3 development sites for the year coming. A 6 townhouse, 10 unit and 10 unit sites.
1 of the sites with a 12 month settlement (longest actual settlement yet for me personally) pretty excited about that.Looking forward to another good financial year and wishing everybody else gets closer to reaching their goals and setting new higher goals once they have been reached.
Real estate.com does have that search option. See search criteria, house,land,rural etc the bottom should be block of units
Do what you have to do. To get ahead and make a start, id say that idea is better then robbing banks.
Just dont go listing your home address as granny flat out the back of my house.A little confused is the granny flat a non approved structure on the block. Or are you saying the Usual scenario is to rent a granny flat without letting the tennant know that your going to rent that structure. (well you would let them know in their rental contract)
Or if is a non approved structure.
council would most likely say. ” sir did you know this granny flat is here without permission, you cant live in this” Then you say OK i will move out and say how you where unaware of this because it had been there for yadadaa 10 years and couldn’t imagine how it couldn’t have approval. Then submit a DA for it because it had been their for 10 years etcPersonal loan at 5.22%,
That’s cheap, where do you bank again?What Council area?
gotta double check that the envisaged uses if student accommodation is wanted in that council area .
as a general though I’ve seen 5 beds/ separate ensuite in a single house. and some more dense 10/11 people on some sites/ self contained units.
Plus another advantage is whilst you might be able to afford to buy using in your own name currently. you might only be able to support a couple of negatively geared properties before you cannot service anymore debt, which is when you can add your wifes income into it and buy in joint names from then. You wouldn’t be able to do this the other way around (Would have difficulty servicing the debt in own name after several joint name purchases)
