Forum Replies Created
Thanks Steve.
Any guidance on what budget I should allow for this?
Donnie
Thanks guys. I will enquire about them.
You are correct RPI and your information was helpful as always. I am in Low Residential so therefore, I will have to talk to my property manager in getting one lease for my future tenants once my renovation has been completed.
Cheers,
Dao
Thank you. Interesting read indeed
Hi Sean,
What are the restrictions in regards to the maximum number of unrelated tenants allowed to live in the granny flat and main dwelling? Either in part or in whole?
Cheers,
Dao
Saz,
I have a good accountant that I use who is based in Robina if you'd like her details. She is also a property investor. PM me if you'd like her details and I'll pass it onto you.
Cheers,
Dao
Thanks wilko1. You are right, I had calculated my usable equity wrongly. Unfortunately FIFO is not an option for me as I have family responsibility requiring me to be based locally, however, as you have suggested, I am looking at expanding my yearly salary with local companies which do not require relocation.
In terms of moving forward, would you be able to suggest whether the next property should be a quick cash or cash flow property in reaching financial security quicker?
Cheers,
Dao
Hi Saz,
I am also no accountant but from my experience, if the LMI is a result of purchasing an IP then it is tax claimable split over a period of 5years. LMI's are considered to be a "loan" in a sense so the repayments are tax claimable. I'd still advise you to see an accountant and double check this.
Cheers,
Dao
Hi Sean,
Could you please explain about the zoning required to do this? I.E What is the minimum zoning required? Also, what about power and water connections? Do you use one connection for both dwellings and have the tenants split the bill or do you put in place seperate meters?
Cheers,
Donnie
Hi guys,
I'm trying to figure this all out myself. What I'm having trouble finding information on is whether I'd be able to access the positive cashflow now or would I have to wait for retirement? What if I improve the property using my own money i.e. not out of the SMSF, where would the profits go when sold?
Thanks.
Thanks RPI
Do you guys have an estimate on how much town planning and surveying will cost per project?
Donnie
Thanks guys, would I need to setup the trust before going in for a contract? Or can I do this at a later date after I have signed the contract under my name?
And how would this protect me if the deal turned sour financially? Could I liquidate the trust and be protected from banks etc in the sense that I did not put up the finance?
RPI wrote:I have bought a similar site this week but will be doing so without investors, am trying to buy the 15000m2 next door also. Have also negotiated 3 other contracts for clients lately.
DD has all been 60 days
Settlement 6,10 & , 12 & 12 months
Consent to advertise and sell
Thanks RPI. I'm assuming you're using the DD clause to cover you for finance as well?
I am also looking at another property within the same area which is approx 320,000 m2. So from what my mentor has taught me, as a rough calculation I would do:
(320,000m2 – 320,000*30%)/600 {its currently an Investigation zone but surrounding areas are 600m2 minimum lots}
= ~373 lots total
The 30% is to consider parks, roads, etc.
And for construction costs, I've been told to allow $60,000 per lot with an extra $28,000 council contribution. That makes a total of 373*$88,000= apprx $33,000,000.
Each land should sell for minimum $180,000 so total profit will be $67,140,000 – $33,000,000 – SD – interest – purchase price – contingency.
Do these numbers look alright? And how would I plan development stages? Do I need to put a clause in the contract to perform construction works?
Hi guys,
Could someone please clarify for a beginner like myself whether you are able to restructure your P+I loan to IO? And also, what happens when you've paid of the interest and your offset account balances out your loan eg. you have 300k in an offset account for a house with an initial 300k loan?
Cheers,
Donnie
Thanks Terry
