Dom,

This all depends on how you structure your investments over there. You really need an accountant in the US and here to work this out properly. I would suggest looking for a firm with a presence in the US State that you are interested in.

Regards
Alistair

I gather they are scared of adverse publicity from people such as Neil Jenman. Mortgage insurers also don’t like them for some reason.

You can certainly simply not tell the bank, but if they find out they will probably stop lending to you. They find out when you try to use your unusually large income per property to prove servicability. A broker…[Read more]

CBA don’t like wraps at all, in my experience. I have a couple of smaller lenders that will do them though.

Regards
Alistair

Simon,

It sounds like the developer is passing on the building costs, and therefore also the building risk, to you. I would want a massive discount to agree to something like that.

Regards
Alistair

Hi Dave,

I think from memory Roy Halabi, who posts as GPSNetwork, is active in Hervey Bay. If my memory serves me correctly he will have a massive amount of info on the area and would be a great guy to speak to. You will find him on this forum or else you can email him at roy@gpsnetwork.com.au

Regards
Alistair

Thanks Richard,

Is the structure going to be an REIT or some other form of trust?

Regards
Alistair

Hi Richard,

What do you mean by “we just need to sign off on the underwriting format for each Unit holder.”. Does this mean you’re going to float the unit trust on the ASX and are having the issue underwritten by a broker?

Regards
Alistair

I think the main problem with Section 32 loans is that they are uneconomic for the banks. This is not so different to small loans in Australia.

The laws that effect commercial loans are not nearly as onerous and commercial lenders place a greater emphasis on the strength of the asset and its ability to pay for itself, therefore 9it is easier to…[Read more]

Hi David,

I use Guests Accounting (www.guests.com.au), who are situated in Caufield and highly recommend them. I also have had some dealings with Stuart Smith from The ASG Group, who are in St Kilda and seem very switched on, their phone number is 03 9646 0987.

Regards
Alistair

Hi Soodle,

If there have been at least 3 sales in the last 6 months in the town, and it in a town (not farmland or acreage) you can get 90% LVR. I’m more than happy to assist you with this if you are interested.

Regards
Alistair

Hi Zulik,

Whatever you do make sure you get an excellent architect or drafty. This will have a major impact on how many units and what size you will be able to fit and also on the end value. If you would like a referral to some very good designers please drop me an email and i will forward you some names.

Regards
Alistair…[Read more]

Hi Darby,

Deposit bonds are deposit bonds, it doesn’t really matter the brand, just check that the vendor will accept it and then get the one that costs you the least.

In terms of choosing a broker. I agree with Simon re getting a recommendation. I’m sure there are plenty of people on this forum who would be happy to recommend somebody to…[Read more]

Hi Michael,

I deal with a couple of people over their who could help you out, depending on where you are looking. Different people are generally better in different States. If you email me the State you are looking at I will send you the contact for an appropriate person.

I’d also be interested in speaking with you about the area that you act in…[Read more]

Hi Richard,

3 months is absolutely best case scenario, usually closer to 6 months. It takes closer to 12 months if it goes to VCAT.

Regards
Alistair

Hi Misty,

Have you obtained a town planning permit/Development Approval. If not this should be your first step. You can’t really do anything until you have permits. I’m not sure about other States, but in Victoria this process alone would take at least 3 months, but it would be smart to budget for 12 months in your due diligence.

If you already…[Read more]

Most of the majors would beat those rates with full features. As Simon suggested, you could do a lot better if you are only after a basic product.

Hi Rayson,

When choosing a potential development site, one of the most fundamental things you need to know id what it will be possible to do with the site. If you don’t know this, you can’t do a proper due diligence. Therefore the first thing you need to do is to find yourself a good architect or draftperson, whio can give you some idea of this.…[Read more]

Thek,

If you deal with e-choice, you will either be dealing with an employee or a franchisee, I’m not 100% sure which model they use. Either way, they are unlikely to be as knowledgable as any of the independent brokers that frequent this site.

Regards
Alistair

Hi Jay,

I was in a similer situation to you a few years ago. My wife (then girlfriend) and I bought a PPOR and have been doing it up ever since (I don’t have a great amount of time or skill in terms of renovations). This has worked well for us, as I have been able to access significant additional equity since purchasing.

Regards
Alistair

Hi Chang,

If you have to ask this question, you really should consider using a service such as that offered by Metropole (Michael Yardney’s company), particularly for your first project. Property development sounds sexy and you can make a lot of money out of it, but you can also lose a lot.

Regards
Alistair