[benofbrisbaneParticipant@benofbrisbaneJoin Date: 2007Post Count: 62]

July 13, 2014 - 6:54 pm

Hi ramki what street? Good suburb some streets better than others.

[benofbrisbaneParticipant@benofbrisbaneJoin Date: 2007Post Count: 62]

July 13, 2014 - 6:52 pm

Hi ramki

What is the return? I think if it works as an investment and you get the lmr potential how an you go wrong?

[benofbrisbaneParticipant@benofbrisbaneJoin Date: 2007Post Count: 62]

April 19, 2013 - 4:37 am

Thanks Alex.  Does Adrian have an email? What is his company name?

[benofbrisbaneParticipant@benofbrisbaneJoin Date: 2007Post Count: 62]

June 22, 2012 - 12:34 am

Oh yeah, also, is there any chance of capitalisation of the interest?  Or is that a pipedream?

Thanks for your time.

Ben

[benofbrisbaneParticipant@benofbrisbaneJoin Date: 2007Post Count: 62]

May 20, 2012 - 11:46 pm

or anyone had experience doing it themselves?

[benofbrisbaneParticipant@benofbrisbaneJoin Date: 2007Post Count: 62]

November 30, 2011 - 1:20 am

Thanks for your comments guys.  Very helpful.

I had been using $1,500.00 a metre – but thought I should I use $2,000.00 of the units, as I understand that units are generally more expensive.

In the market I am looking at there is a lot of competition.  Most people are building the smallish 2 bedders, with high density.  This is fine as it is a price concious market.  However, there should be a market for something a little better as well – the site is in a good position and the final product will present well from the street.  I guess I have got to look at what the market is for those units that are slightly better and what it is actually going to cost to get them up.   Are you talking $1,500.00 for the entire square metreage of the build or just the GFA of the units?  It seems that people use different figures. 

I appreciate your comments, I have looked at a lot of plans over the last few weeks and I appreciate the comments regarding wasted space, it is amazing how poorly some of the places are designed.  I am fortunate to have a good architect, so this should not be a problem.

[benofbrisbaneParticipant@benofbrisbaneJoin Date: 2007Post Count: 62]

November 29, 2011 - 7:07 am

Thanks ChristianB – can conventional units be also delviered for around $1500 sqm (two level walk up).  The top storey does not have to be fire rated. Thanks for your time.

[benofbrisbaneParticipant@benofbrisbaneJoin Date: 2007Post Count: 62]

November 10, 2011 - 1:05 am

Hi All –

just an update – my broker hit up the CBA for a further reduction and they have given us 0.95% off the standard variable, which takes us to 6.61%, which seems good.  This is 0.25% reduction from where we were and with the RBA cut we are now 0.50% down from where we were last Monday.

[benofbrisbaneParticipant@benofbrisbaneJoin Date: 2007Post Count: 62]

November 8, 2011 - 12:20 am

thanks Luke – the engineers seems to think OK – so not too bad.

Just a bit worrying when you get these things

[benofbrisbaneParticipant@benofbrisbaneJoin Date: 2007Post Count: 62]

November 3, 2011 - 7:30 am

6 – 2 bedders – on market in 6 months – off the plan would be helpful – $350plus.

[benofbrisbaneParticipant@benofbrisbaneJoin Date: 2007Post Count: 62]

November 3, 2011 - 2:25 am

sorry – should clarify that Zillmere is in Brisbane for those not from around here.

[benofbrisbaneParticipant@benofbrisbaneJoin Date: 2007Post Count: 62]

October 27, 2011 - 11:56 pm

Thanks for your comments Richard – and everyone else too.  I guess my position was that I really didn't have the equity in my PPOR (that I wanted to touch anyway) to allow me to take out the second loan on it – though I see what you are saying now in relation to thinking a little creatively.  I am sort of pretty entrenched with my current broker for various reasons so cannot go changing at the moment.  Though Richard I will certainly keep you in mind!!

One positive though, is that I emailed my broker regarding my rate and he has told me that he has already put in a request for CBA for the interest rate to come down.  So fingers crossed!

Thanks

Ben

[benofbrisbaneParticipant@benofbrisbaneJoin Date: 2007Post Count: 62]

October 27, 2011 - 10:43 pm

thanks Richard – the only problem being that I do not have a lot of equity available in the PPOR.  The redraw takes the PPOR loan up to 80%.  So to borrow more against the PPOR I would have had to pay LMI wouldn't I?

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October 27, 2011 - 7:30 am

i am not sure I understand the cross thing.  The issue was that I had $100K available by way of redraw in the PPOR.  I didn't want to put up any cash for the IP, so I borrowed 100% plus costs.  To borrow 100% plus costs on a stand alone basis I would have had to pay LMI.  By providing my PPOR as security for borrowing for the IP I was able to avoid paying LMI as the amount of the amount of the loans was less than 80% LVR overall.  I don't see there is any other way I could have done it.  If someone can explain it to me (perhaps they have and I just don't get it!!) than that would be great.

Thanks

Ben

[benofbrisbaneParticipant@benofbrisbaneJoin Date: 2007Post Count: 62]

October 26, 2011 - 10:12 pm

Hi Everyone – thanks for your comments.

In regard to the cross collaterisation, that was done with my blessing – I didn't want to pay LMI for the purchase of the IP and didn't want to lose access to the equity I had available in the PPOR through the redraw.

The 7.11% rate is on a the PPOR which was obtaining in March 2010.  So I guess that was the going rate then.  Are we now entitled to hit the CBA up for a a further discounted rate now? Is this something they do after the loan is written? Should this be something my broker does on a regular basis?

My loan for the PPOR is $380K, the loan for the first IP is $540 and the new loan will be for around $420 depending on what LVR I opt for.  Should I be getting a lower rate than most?

Myself and my partner are both employed in long term professional jobs with good incomes.

Thanks for your comments.

Ben

[benofbrisbaneParticipant@benofbrisbaneJoin Date: 2007Post Count: 62]

September 29, 2011 - 11:24 pm

hey swampy – thanks for the reply.  So why don't they just make them two titles? Surely a developer would make more selling two apartments rather than one apartment with dual key? Plus wouldn't the tenant rather not have a common hallway – just have their own apartment?

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September 23, 2011 - 4:40 am

does the 80% of cost include land – because at the moment i have borrowed around 105% and am looking at another $450k for the build.  So around a million all up – does that mean that they will only lend me $800K? Even though it would be worth $1.3++ after construction.  This seems rough.

[benofbrisbaneParticipant@benofbrisbaneJoin Date: 2007Post Count: 62]

September 22, 2011 - 11:04 pm

hey everyone

thanks for your comments.

Allistair

I will keep an eye on the line fee – tks for the clarification re GST.   I had been advised differnt things by different people as to whether the 70% is the end product plus GST or not.   Just to clarify you say that the CBA will only lend the lower of 80% of costs or 70% of end value – which ever is lower.  So if the project is going to say costs $1 million, they will only lend $800K is that right regardless of end value?  I had thought that if the project was going to cost a million and the end val was say $1.4 million that they would lend me basically the full million is that not right?

Michael

I see your point re the change – I guess I had naively thought that once construction had finished that I would simply be able to convert the loan to the normal loan and obtain the usual interest rate – is this not the case?

Richard

I am happy to go with a resi loan, but the broker reckons that because there will be four units once constructed that the banks will only look at as a commercial loan. Is this not your experience?

Thanks very much for your time.

Cheers

Ben

[benofbrisbaneParticipant@benofbrisbaneJoin Date: 2007Post Count: 62]

August 28, 2011 - 11:43 pm

hey dbloom

i am also going to be looking for a builder in a couple of months to take on a couple of townhouses in zillmere.

Can you us know if you have any luck getting a builder and tips you might have on who to choose and/or how to choose?

be good to hear from someone who has gone through the process locally.

cheers

ben

[benofbrisbaneParticipant@benofbrisbaneJoin Date: 2007Post Count: 62]

August 5, 2011 - 5:40 am

http://law.ato.gov.au/atolaw/view.htm?docid=GST/GSTR20033/NAT/ATO/00001

see paras 53 to 83.

if you have substantially renovated a home than it may be eligible for the $10k. 

does not matter is lived in before – it is the 'substantial renovation' which attacts the grant.