Forum Replies Created
Pretty standard approach.
Problems occur with always loan redrawing after completing renos on properties are the lowering of serviceability unless it is covered by a increase in rent. But also it becomes harder to move to the next level of investing. Lets say you bought and renoed and revalued a property. Drew down the equity made and went and purchased another property and renoed and then drew down. Each time if your buying standard bread and butter properties under 400k and making lets use your example of 40k. Then what is your maximum earning potential.. Its only 40k at a time.
Sometimes letting go of a one or two or 10 properties can release the cash required to take your investing to the next level. Ie a Bigger development where in 1 year you could leverage and make 300-400k etc. It beats renovating 10 individual properties in the same year.
That's about normal now. 700 plus gst.
if you have several houses you can lump them in all at once for a better deal.
It pays itself back 4 fold in the first tax payment with a schedule of 3500-4000.
sounds like a excellent deal to me.
Also you get discounts if you give them a lot of business. 2 years ago I used to get charged 660 and now I'm down to 550.inc gst
Those sample pots are better then painting the entire front of a house in overcast conditions before the sun came out and you reliesed you just painted the entire front of the house in bright gay purple. And you stand there going that is not what it looked like the shop lol
well I would firstly Pay $300-500 to speak to a colour consultant so that they can pick the colors out. You would want to paint the most updated colour schemes that are out there. I've found that weatherboard houses can look especially striking with a darker colour palette. But for a 6 bed home double storey that sounds a OK price. Its not super cheap either though. but its ok. I think you could at least add that price in value to the home.
Try get some cheaper quotes. Play each trade off each other. "If you can do it less then 7500 its yours etc"
and the "include what you like" statement is just a Upsell so the banker can say they took out a 500k loan with 400k Line Of credit (900k total) instead of just lending the 500k.
Upsell for business.
Ejay If you had of gone ahead with it. It would not have been lent on the valuation price. The only reason your banker didn't raise any objections after you stated what you think the properties are "worth",is because hes getting your other security. But they are still going to take the The Lower figure of the purchase price or valuation price, to Lend against your LVR levels.
YES 100%-105% finance is possible but that is because they are cross collateralising your own house and IP into this transaction. This does not mean they are lending MORE then the valuation price compared to the purchase price. Sure they might lend you 105% of the property value to cover stamp duty. But that is because they are wrapping up your IP and home into this deal and are going to put you at several disadvantages if you wanted to sell and or refinance or Slip up on one paying the interest on one of the properties. Because they will not make you sell the property that you have 105% debt on if you make a mistake they will come after the property with the biggest equity position (Most likely your home)
The only time that i have seen valuation being accepted is on commercial properties using deeds of assignment.
I think you need to speak to other consultants.
220k for a reno. You would have to of bought significantly well below market value and or have a huge suburb variance between sale prices of un-renovated and renovated dwellings. Only really possible on million dollar sale prices. IM not saying its impossible not to make money.
But if your spending 220k to renovate, that is excessive (unless its a million dollar sale price plus- please tell us)
220k could be a up market 3-4 bed double storey home depending on the level of finish.
Add another 25k for subdivisions 5-10k planning and 10k demolishing some holding costs (hard to guess without your loan amounts or if there is any) AND another 220k for the opposite side of the duplex.
You can quickly see here that for a additional (265k plus holding costs) plus the 220k for the other side of the duplex, You could end up with a another dwelling. You now have to Do you numbers and research the following
– What can you build the site. each frontage is going to be 6.75m wide which means getting your design correct.
– How many bedrooms for the new properties
– Comparable sales for brand new houses
– Comparable sales for a renovated property (from experience i can tell you that all things being equal, area, location, street, bedrooms, quality) that a new home will sell for more. Unless the existing renovated property has wanted characteristics, think Victorian, Edwardian, terrace housing. Properties that to emulate the level of detail these days is unaffordable. People always love things that a new and shiny.
– building new means that floor plans are usually better designed and functional, unless modifying the existing floor plan.
Or have them pay all usage charges.. Its actually easier. Because the figure is calculated in the bill and there will be no arguments. When you try to calculate the amount over the 137Kl, you constantly have to check that its been calculated correctly and if you have more then a few investment properties this can be tiring. Tennant's should pay for water usage.
Hopefully your accountant meant that if you claim the "rent" from the property that you would go into the next tax bracket and not the depreciation.
Depreciation would be calculated on the quantity surveyor report.
standard SA tenancy agreements have the option to select either the owner to pay water supply and usage.
the owner to pay supply and all usage forwarded to the tenant.
and a combination of the both where the owner will pay UP to i think its like 137 KL (Anyway it works up to usage of about $50-$60 (combined with your sewage and water supply charges)). Any extra gets charged to the Tennant.
I think charging usage is the way to go.
Its also a way of increasing the rent without increasing the rent if you have properties that are not currently charging usage.
Tennant gets the same rent and you get your usage covered. Always works better with a tenancy manager for some reason.
"Or you could be reallllly un-nice to the vendor and call council up about the structure. That would put a cat amongst the pigeons for the vendor. "
Then low ball offer them (only if your mean)
– insurance problems would be chased back to the vendor lying on the contract (their insurance wouldn't pay either because they didn't disclose)
– Tennant problems ie the tennant getting injured by the illegal structure would also be chased back to the vendor.
But in both cases you would want sufficient proof that the illegal structure was there when the last vendor sold Ie photos.
Otherwise if their is no evidence or photos showing it existed they could say you installed it.
If It is a illegal structure and the previous owners don't declare it is illegally built without council approval on the contracts. Then in the future if council ever approached you and said that is illegal. You can sue the previous owners and there have been cases where the previous owners have to pay for the removal of the old lean to. New council approvals and Rebuilding the lean to. Im not sure what the lengths of time are but one of the cases was up to 5 years. If you want to spend the money chasing them, then you'll win either way. Or you could be reallllly un-nice to the vendor and call council up about the structure. That would put a cat amongst the pigeons for the vendor.
Isn't bit coin "mined" by How many processors/ ram drives you give over to be used. Some people have hundreds (banks ) of processors lined up that they were using to mine. (Whilst stealing electricity, to pay for their huge electricity bill)
Shouldn't the question be. Why does someone need SOOOO much processing power. If they have hundreds of thousands of people out there "mining bitcoin " who's using the combined processing power. Some researchers are saying the total power is greater then most super computers
I think model of installing these 2 bedders that are transportable. Ie you can take them down again. Is that you could purchase a quality blue chip property on a bit of land put it in the backyard to make it now significantly positive cashflow so you can hold for the long term. This has been done in wa for years already. People install it on a quality home and when they sell the property as is or they either remove and transport it elsewhere.
The problem with kit homes is financing. And yes there might be kit home lenders that lend to them. But more often then not the actual finance outlay to build a new home on the rear of a subdivision would be less then the 60k-70k to buy outright a lot home and fit it out. Because the majority of the time this would be the situation you are in.
Thanks alistair. I should get you to look over or do the next one. This is my first step into commercial lending having done all resi before. So I always knew it was going to be another kettle of fish to contend with. But they don't tell you the actualities of it. Ie they say they can lend at 70% but once they take of gst, off a contingency amount, rack up your repayment periods and interest rates. That 70% quickly becomes a 60% lend
Did the 46k include the internal fit out
carpet
tiling
kitchen
painting
skirting and cornice
bath shower
taps
I think its only for the shell
I would think its closer to 80k fully installed and that is most likely doing a fair bit of the inside yourself
Good price though. That the type of home i think would make a great beach shack in some nice country beaches
10k for stump and bearers potentially.
Sewage and water cost – 3-5k if not connecting to oringial house but if making a seperate title you are looking at standard subdivision costs 20-30k
Planning approvals 3-5k
also would need the cost of a carport.
landscaping
fencing
residential property is a good base. Because its familiar with almost everyone. You can get the highest LVR's and people understand residential property Over commercial property.
