How long ago were the defaults?

You should be able to do a lot better than 8% on the construction, which would change the net income figure quite a bit.

Regards
Alistair

Ron,

You should seriously consider using the services of somebody such as Michael Yardney. There are a lot of pitfalls to development, and just as many people lose money as make it, guidence from an experienced professional woill help you manage your risk.

Regards
Alistair

Hi Sean,

You should have a chat with Roy Halabi, who posts on this site under the name GPSNetwork. He is into assisting people in developing property investing strategies.

Regards
Alistair

400sqm is a nice large size to work with, but you can fit units on much smaller blocks, particularly if you are looking closer in to the city.

In that case I can confirm that the regulations for 3 are the same as 2. Have a lolok at the local planning scheme for the area you are interested in, you will find them all at http://www.dse.vic.gov.au

If it is in Victoria, the answer is no, the rules are the same. I can’t comment on other States.

Regards
Alistair

Hi Djmetz,

I know Nigel who runs Property Know How, he is very knowledgable and has been in the game for a long time.

Regards
Alistair

Ron,

Get yourself good consultants, and particularly a good designer. The skill of the the designer will have a direct impact on the speed of you get your approvals and the end price of the development.

Regards
Alistair

There is nothing wrong with speaking to the a council planner, but you are wasting your time if you don’t have a design to show them. If you don’t have any idea about the rules that apply, then you should employ a designer who is familiar with unit developments or consultant planner to advise you.

It is impossible for a council planner to tell…[Read more]

Hi Nats,

You won’t find a minimum size in the planning scheme. There isn’t one. If you have a look at completed unit developments you will get an idea of what can be built in the area. It is a waste of time going to the council until you have a design to show them.

Regards
Alistair

Hi Dan,

In your situation i would have the current property revalued, take out the 17K to use as part of the deposit, borrow 80% of the price of the new IP and stick your remaining cash in an offset account.

By doing this you will still have some cash readily available for further purchases etc. and it will also put your total borrowings over…[Read more]

Hi Carl,

Information Victoria sell a book with the last 10 years medians for each suburb. The bookshop is in Collins St, I think. Its only about $30 I think.

Regards
Alistair

A site that’s worth looking at re small commercial syndicates is Gardner and Lang (www.gal.com.au). They put together syndicates and offer quite a lot of free info on the subject.

Have a look at the fee structures, often the manager of a syndicate receives a large % of any capital growth, so the income might be equivalent, but not the pay back at the end.

Karina,

With 5 units you will be looking at a commercial loan. You will be lucky to get 80%, although if it is a particularly good deal for some reason, you never know what you might be able to get.

Regards
Alistair

Vexil,

Wholesale Property Brokers often purchase properties from distressed developers on behalf of their clients. Danny Smith, who posts on here quite a bit, works for them. You should send him an email, I’m sure he’d be happy to talk to you about how they find their deals. His eamil is danny@wpb.com.au

Regards
Alistair

Hi James,

You’ve just proved that you do need a mortgage broker. If you fix a rate for one year you will be paying above the standard variable rate, and if you sell before the end of the period for which you have fixed it you will also incur breaking costs.

Why bother doing your own research is this field when a mortgage broker costs you…[Read more]

Andy,

You should try on of the brokers on here, such as Simon, who provide us all with free information on a daily basis.

Regards
Alistair

This is a game of celebrity Head isn’t it. You’re Neil Jenman!!