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Hi Vluu,
You'll find that Michael Yardney is a member of this forum so perhaps you'll hear from him?
He's also written a book titled "How to grow a multi-million dollar property portfolio".
As Raddles said his theory is based around high capital growth property which is usually within a 10klm radius of a major CBD & then drawing down on the equity.
I'd suggest you have a read as its important to gain the perspective from both "sides" before setting your strategy.Yes agree with the boys!!
Wow this is an old thread!!
We've just sold this property for $239K and it settles tomorrow. Just to good a deal to walk away from!
Amanda
Sounds great Linda, luv to meet for lunch. Drop me an email closer to the time! How was the book?
I recently started a thread about this topic:
https://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4321062
As you know Milly Ipswich is THE place to live, work and invest !!
Anni, Glad to hear that you're coming back to the best side of Aus.
Hi Anni,
Where abouts are you?
Things seemed to have warmed up a little now, but still a few frosts around.I'm of the view that your investing "style" really depends on your personal situation, taking into consideration issues such as time, cash flow and family. What works for one person may not suit another. Also as your experience increases you tend to broaden your investing style. So I'd suggest you start small, keep reading and researching and take steps as and when you feel appropriate.
Hi Lisa,
Glad we could help out.
Depreciation Schedule/Asset register……you've just given me an idea for another spreadsheet I can work on, or perhaps it would be better done in Access !!
We actually had someone terminate a contract under the cooling off period several years ago on a property we had for sale, so the .25% was deducted from the buyers deposit. However we only got half of that as the RE agent kept the other half !!
It looks like this matter is sorted out now, but my understanding of the Qld finance clause is that the buyer "must take all reasonable steps to obtain finance approval" I suppose what is "reasonable" is open for interpretation?
Michael I don't think you could ask a finance broker to write a letter saying that your finance has not been approved without taking all the necessary steps.
We have an article on our website that steps you through record keeping plus you can download our excel spreadsheet at:
http://www.propertydivas.com.au/Downloads/Annual_taxation_reports.xls
Hi Simon,
My view is that Q.1 would only be tax deductible if you were in the "business" of property development and bought and sold several properties.
Q.2 is a capital cost, (as is 3 & 4) and will be added to the cost base of the property when calculating capital gains tax if/when you sell the property.Further reading : http://www.propertydivas.com.au/3TaxMang/CapitalGains.aspx
To help reduce the CGT you can contribute funds into your super and receive a tax deduction. Talk this over with your Accountant first to ensure you're eligible.
I'd first have a chat with your Council as they all have different procedures but the process is similar. In the situation you're describing you'll still need to contribute to footpaths around both sides of the whole property, plus upgrade the existing driveway if necessary. You may also find that even if the existing house has no storm water that you'll need to upgrade both places with new pipes/sewerage etc.. Best to check the process in your area first it does take a long time, even years to finish. We started one in Oct 2004 and its still not through yet, and has been in Council for final processing for almost 3 months as they are just so busy.
Hi Saima,
Great advice from Marc by the way. I grew up on a farm in western Vic so know the area quite well. Its always worth a trip to visit your local Council to investigate whats happening in the area or visit their website http://www.mitchellshire.vic.gov.au/index.asp?h=-1, perhaps also have a look at the updated ABS statistics online.
Do your research to reduce your risk and then have a go, you'll never look back!!
Springfield is located in the booming Ipswich growth region of SE Qld and is a new masterplanned community. It is anticipated that Springfield will be home to 60,000 residents by 2026. Recently the first stage of the Orion shopping centre opened and when complete this will be Australia's largest shopping complex. The new University opened this year, plus there are 4 schools both public and private and currently 9 child care centres service the area. I believe construction has commenced on the new railway line to link Springfield to the Darra line. So the area has huge potential with a lot of jobs growth expected in Ipswich.
I agree that some of the blocks are tiny, around 400m, so perhaps look at the average 700 – 800m blocks suitable for a family.Hope this helps.
PS. I have a story and some photo's on our website about Orion if you want to take a closer look.
The following is an extract of a document off our website that explains further about subdividing:
What is Subdividing?
Subdividing is when a piece of land is split into two or more pieces (ie separate lots). The process is controlled by the local Council. Planning codes and procedures vary significantly between Councils and also between States and Territories, as do the relevant fees and charges.
Factors to examine when considering a Subdivision
• Local town planning regulations- Land zoning restrictions
- Minimum size of lots
- Access to water and sewerage services
- Setback requirements
- Minimum building envelopes
- Parks and open space
- Easements
- Vehicle access including Council refuse collection
- Storm water management
- Increased noise from new development
- Environmental and heritage issues
Hidden Costs
A subdivision can take several months (and sometimes even years) to complete so you must factor in your holding costs such as:
• Interest
• Rates
• Land maintenance – (eg slashing and weed control)Many astute Developers make the purchase contract for the land subject to the acceptance of a Development application approval with Council. This is usually done with an option agreement (see your Solicitor for more information)
Dividing the Land
Before you rush out and build a new dividing fence in your backyard, you should first consult your local Council for specific guidelines and costings, as it is imperative that the property is divided correctly. Any errors at this stage will cause major problems further down the track.
The Process
Most Councils require a Development/Planning Application to be lodged, together with details and drawings of your proposal. A Town Planner or Surveyor can assist you with this process, and they may also be able to give advice regarding conditions that the Council is likely to require.Before lodgement of the Application, you can ask the Council for a “Pre lodgement” meeting to discuss your subdivision and determine what issues will need to be addressed in the Application.
When the Council receives your application, they may require you to erect a notice board for public viewing. The purpose of the board is to alert the public of the proposal by providing details of the subdivision. The Council may also write to the owners of the residents of the neighbouring properties advising of your intentions. We suggest that you contact the Council to find out what procedures your local Council uses.
Additional information the Council may require Water and Sewerage
• Are existing services available?
• Can the existing infrastructure cope with increased use or need upgrading?
• Is permission required from neighbours to access property?
Storm Water • How will storm water run off be managed?
• Is a drainage pit required?
• Are tanks required to regulate the flow of storm water?
Noise • Will existing main road traffic noise affect the subdivision?
• If so, how will this be reduced? (Fences and/or earthworks)
Soil Conditions • Do the soil conditions (eg.sand, clay) impact on road and footpath design?
Other issues- Footpath
- Lighting
- Signage
Issues for the Developer to consider For the Developer there are also other issues to consider such as:
- “Wasted” land due to unusual configurations
- Steep slopes
- Flood-prone land
- Other planning overlays (ie restrictions)
- Other factors that may reduce the number of lots and so profitability.
Approval of the Development Application
The approval process for your Application may take several months depending on the complexity and size of the subdivision.You will then be issued with a conditional approval covering topics such as:
- Developer to supply a plan of survey and mark land with survey pegs
- Road reserve
- Easements over stormwater, water and sewage mains
- Requirement that storm water pipes be designed to cope with a “1 in 100 year” event.
- Dust control
- Hours of permitted work (usually Mon – Sat 6:30am to 6:30pm)
- Headwork contributions to be paid by Developer
- Open space (parks)
- Social infrastructure
- Road infrastructure
- Water infrastructure
- Sewerage infrastructure
- Street scape contribution
- Disposal of cleared vegetation
- Entry walls or features
- Connection fees to live sewer mains
- Road (width, pavement depth, footpaths, kerb and channel, ramp profiles)
- Street lighting
- Fire Extinguisher (Battle axe blocks)
- Underground electricity and phone
- Erosion and silt management
- Maintenance period of roads
- Retaining walls
- Fire ant inspections
- Portable long service leave for Building and Construction Industry
If you are not satisfied with the Council’s decision, you may apply for a review.
Operational Works
Before work can begin, you will need to engage the services of a Civil Engineer to design and draw the sewer, water, road, footpaths and any other Council requirements.This is a separate application usually referred to as “Operational Works” and attracts additional fees and charges.
Final Stage
All civil work will require Council and Engineering certification. When the subdivision has been completed to the satisfaction of the Council, you can then apply to register each separate title deed.
Conclusion
Land subdivision is a $mart way to fast track profits into your investment portfolio. However, as with all investment decisions, thorough research is necessary in order to balance the level of risk associated and ensure that the process runs as smoothly and quickly as possible, and that the best, most profitable outcome is achieved."Your Investment Property" seems to be produced by the same publisher as "Your Mortgage". Shelf price is $9.95, but you can subscribe for 6 issues at $29.95. Have a look in your local newsagent. Similar format to API.
Hi Zayne,
Yes we have several free templates available on our website and here's a link to the Annual Taxation Reports Excel spreadsheet.
http://www.propertydivas.com.au/Downloads/Annual_taxation_reports.xls
Congratulations on your first IP.
