Hi
We are a professional self-employed couple with three young kids who are super super keen to break into the property development (renovate & sell/rent) and investing market. However, we are a bit stuck how to move forward and would really appreciate any advice that you seasoned investors/developers out there can offer us.
We don't currently own a property of our own (we rent on the Mornington Peninsula) and have $20K to use in TOTAL as a deposit. We figure we might have to go with low doc/no doc loans to purchase an investment property. Anyone know any good mortgage brokers who can help with out of the box type applicants??
What are the negatives/positives of buying a house to renovate & re-sell in a very short turn-around time? We have an idea to renovate and resell in order to use the profit to purchase the next property, and so on and so on. We wouldn't be living in the property at any stage. Whats the story with capital gains? And does this plan sound like a good one?
We are currently researching the apartment/townhouse/house (of all bedroom numbers) prices for several regions in Victoria as well the demand for diff sized properties. We will be contacting estate agents to discuss the demand/current house market and looking at real time houses/etc that are on offer to see if the stats marry up to 'real life'. Does this research sound well-rounded enough for us to get a good idea of where to buy?
If there is any advice at all that anyone can give us, or any great people that you can put us in contact with, we would really appreciate it.
Thanks
Kelly and DarrenRead Read Read and Read all you can …
Spend some … no lots of time to go through this fantastic site and read all the topics you are intersted in … spend at least 6 months doing this b4 you invest … you must study hard there is no short cut …
I have spent over $150,000.00 attending various course over the last 20 years now it's your turn to INVEST in your education.
At the end of the day ACTION and EXPERIENCE are worth millions …
Good luck and take your time … it's your money and many lose the game that the FEW prosper in.
D
ffreedom wrote:What are the negatives/positives of buying a house to renovate & re-sell in a very short turn-around time? We have an idea to renovate and resell in order to use the profit to purchase the next property, and so on and so on. We wouldn't be living in the property at any stage. Whats the story with capital gains? And does this plan sound like a good one?
1- apply for any required DA during the settlement period – make purchase conditional upon vendor agreeing to signing a DA. If the work requires a DA after you settle, the holding costs will bite into your profits.
2- get a delayed settlement (to cater for 1)
3- CGT is applicable at your marginal rate of tax on the full value of the profit (house sale price – purchase cost – stamp duty – holding costs – legals etc). If the property is held more than 12 months you recieve a 50% discount. If the purchase is done through a company and this is the business of the company then you will be taxed at the corporate rate of 30% not your mrt and no CGT is payable
4- do an owner-builder course. You will learn how to deal with contracts, trades, organising quotes, project management, budgeting etc.Hello scott no mates,
Some clarification on your comments please?
1- apply for any required DA during the settlement period – make purchase conditional upon vendor agreeing to signing a DA. If the work requires a DA after you settle, the holding costs will bite into your profits.
What is a DA?
2- get a delayed settlement (to cater for 1)
3- CGT is applicable at your marginal rate of tax on the full value of the profit (house sale price – purchase cost – stamp duty – holding costs – legals etc). If the property is held more than 12 months you recieve a 50% discount. If the purchase is done through a company and this is the business of the company then you will be taxed at the corporate rate of 30% not your mrt and no CGT is payable
4- do an owner-builder course. You will learn how to deal with contracts, trades, organising quotes, project management, budgeting etc.Any good owner-builer course in victoria?
Thanks
Rich Mum
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Hi Rich Mum
I see this was dated ages ago. We are in the same boat as you. Did you find the owner-builders course and how did you go getting started?
RachelMonbulkMama wrote:Hi Rich Mum
I see this was dated ages ago. We are in the same boat as you. Did you find the owner-builders course and how did you go getting started?
RachelI am also in the same boat I have googled and found this
http://www.ownerbuilding.com.au A lot more came up. I think I will go for these. Having migrated from the UK I am a newbie to the whole system. I have read Steve's book thanks to a fellow POM and I will be going to the seminar in Perth. So if you find anything that can be of help please feel free to pass it on. I will do like wise.
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