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  • Profile photo of rpbrownrpbrown
    Member
    @rpbrown
    Join Date: 2005
    Post Count: 29

    Am confused at the moment re. what to do. I have bought three blocks of land in the last 5 years with the intenion of building mutli dwellings and selling on. First block I built a duplex and sold. Second block I sold because after doing the math there was nearly as much gain in just reselling as developing. Third block I have just completed another duplex and have put it into the hands of an agent to sell. I have taken the selling approach up until now to build up a cash supply from minus $30,000 to plus $300,000 (once this duplex is sold). I could continue to so the same but after a fair amt of reading,particularly Michael Yardney’s site, and trying to swallow the fact that the agent is going to pocket nearly $16,000 for all my hard work not there’s I am in a quandry. I do not like the thought of being a landlord and having to worry about tenants and I enjoy the building process. Maybe I should consider a combination ot the two. Hmmm decisions decisions. We own our own home say $540,000. Any suggestions from those who have been there done that? Thanks [blink]

    N. Brown

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    As Michael would say, by selling your are getting rid of the goose that lays the golden eggs.

    What about keeping half and selling half?

    you are not really investing if you build and sell, you just have a business. What happens if you cannot work, your income will stop.

    Terryw
    Discover Home Loans
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of rpbrownrpbrown
    Member
    @rpbrown
    Join Date: 2005
    Post Count: 29

    Thanks Terry. Selling one unit means I would have to strata title the units doesnt it? Rates would then be higher. Maybe these are minor details.
    To help reduce interest payments while they were being built and waiting for them to sell I have sunk $205,000 of my own money into the duplex. The expected selling price is $540,000. Was this a good move? I feel I have locked my cash away and won’t see it until I sell which is another reason I would like to sell. Am I suffering from misperception and misconception here because in the end I feel cash is king?
    Another thing which puzzles me is Yardney’s article ‘The Keys to Building a Substantial Property Portfolio” where is says you can use the equity in your property for the 20% deposit. I have naively thought that the bank required the deposit to be in cash not equity.??? If the former is the case, in my circumstances I could buy multiple properties today??[blink]

    N. Brown

    Profile photo of kattankattan
    Member
    @kattan
    Join Date: 2003
    Post Count: 31
    Originally posted by rpbrown:

    Another thing which puzzles me is Yardney’s article ‘The Keys to Building a Substantial Property Portfolio” where is says you can use the equity in your property for the 20% deposit. I have naively thought that the bank required the deposit to be in cash not equity.??? If the former is the case, in my circumstances I could buy multiple properties today??[blink]

    N. Brown

    Brown,

    1. refinance/ramp up your loan on your property to 80% or more as necessary. preferably establish this as a line of credit.
    2. take out the $ required for the new property deposit from this line of credit.
    3. preferably buy the new property with a new lender [don’t put all your eggs in one basket, cross collaterilisation, etc..]
    4. MOST IMPORTANT: talk to a good mortgage broker who will explain these things and will guide you towards a proper structure.

    Kattan

    Profile photo of rpbrownrpbrown
    Member
    @rpbrown
    Join Date: 2005
    Post Count: 29

    O.K.. Kattan, it seems what I need is some good advice from accountant /mortgage broker because I dont lack the resources to get moving in the right direction. I am not happy with our current accountant – too many clients I suspect.
    We are conducting our ‘business’ as Terry called it in a family trust structure, which seems to work fairly well as two of our four children are over 18 and on low incomes. The remaining two are 16. About 18 mths before the big 18.
    Does anyone know of a good accountant/mortgage broker [blush2] who could service us from Toowoomba?

    N. Brown

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Hi N Brown

    Based in Brissie but have a few clients in Toowoomba and be happy to assist.

    Mind you i guess it is upto my clients to say whether i am a good MB – lol.

    References please.

    Cheers

    Richard Taylor
    Residential & Commercial Finance Broker.
    Licensed Financial Planner. Ph: 07 3720 1888
    [email protected]
    Looking for life cover – We Guarantee to beat any quote you have in writing.

    Richard Taylor | Australia's leading private lender

    Profile photo of rpbrownrpbrown
    Member
    @rpbrown
    Join Date: 2005
    Post Count: 29

    Thanks Richard for your offer. Now for the accountant. It seems no one has any suggestions from Toowoomba. Somehow that doesn’t surprise me. How about anywhere reasonably accessible in S.E. Qld.?

    N. Brown

    Profile photo of JFisherJFisher
    Member
    @jfisher
    Join Date: 2007
    Post Count: 143
    Originally posted by Qlds007:

    Hi N Brown

    Based in Brissie but have a few clients in Toowoomba and be happy to assist.

    Mind you i guess it is upto my clients to say whether i am a good MB – lol.

    References please.

    Cheers

    Richard Taylor
    Residential & Commercial Finance Broker.
    Licensed Financial Planner. Ph: 07 3720 1888
    [email protected]
    Looking for life cover – We Guarantee to beat any quote you have in writing.

    Hi rpbrown, Consider this a reference for Richard! We’re in Victoria so distance is no barrier. Cheers Julie

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Hi Julie

    Thanks for the reference. I havent got your deal through yet but i still love ya.

    If you are after the best property accountant in SE Qld try Steve Hodgkinson at the Gold Bus Group on 5532 2855. Tell him i sent you so you can get past the receiptionist as most good Accountants are not taking on new clients.

    Steve has been my accountant for nearly 13 years and really knows his stuff.

    Cheers

    Richard Taylor
    Residential & Commercial Finance Broker.
    Licensed Financial Planner. Ph: 07 3720 1888
    [email protected]
    Looking for life cover – We Guarantee to beat any quote you have in writing.

    Richard Taylor | Australia's leading private lender

    Profile photo of raddlesraddles
    Member
    @raddles
    Join Date: 2006
    Post Count: 187

    HI there N Brown
    by the way we are in Toowoomba and use Elliott & Co who are the largest strata title managers in town as well as an accounting office

    If you wanted to share experiences in property – please email – and we could discuss our experience with mortgage brokers etc

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