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Hi guys,I'm trying to soak up as much information as I can, and have a couple of subdivision questions if I may:1.Lets say you get a bare block of land in a regular suburban neighbourhood, or a small town. If you were to purchase it for say $100k (hypothetical) then subdivide it into equal lots, is there a rule of thumb for what the two new plots would sell for unimproved? This is more out of curiosity that anything else I guess. I realise it's perhaps too basic a question, but any input would be great.2.Is this strategy of subdividing going to require more funds to start than a regular renovation strategy? Or perhaps more accurately, "how much more" than a regular reno? I must admit my interest is much more towards subdividing and developing, rather than renovation – but I guess I'll start with what I can afford if it comes to that. For those who have done subdivisions (especially in Brisbane) is there a normal amount of capital you'd feel that you MUST start with to do a subdivision? Again, perhaps too basic a question.Any input on the above would be brilliant. I'm really just trying to get a feel for what my current financial position will allow.Thanks guys,Mark
Yeah that’s a good point, never thought of that.
I’ve seen people mention the concept on these boards, just wondered if there was any formal process.I think as long as it’s all above board and as per the guidelines of whatever regulations govern property sales, then it should be ok. I suppose I’d be kind of like a buyers agent (for when I couldn’t finance the property myself).
I’ll look into it, cheers.
Hey Leviathan,
What a lot of people don’t realise is that the prime lenders (banks, etc) only have about sixty odd percent of the lending market. The rest goes to the sub-prime and more unconventional lenders. It’s these other lenders who will generally look at people with poor credit history, although you may need a larger deposit and have to accept a higher interest rate.
And good mortgage broker can connect you to these lenders without difficulty, providing you satisfy their basic criteria.
I can give a recommendation or two on who to talk to if you’d like…?
Anyway, keep asking questions and getting answers, it’ll all come good.
Mark
Just out of curiosity – to those who have bought cashflow positive property in more ‘rural’ areas…
What condition are the houses in, time wise?
Are they generally old with a lot of non-modern fittings and styles?This seems to be the norm from what I’ve seen on the net (and yes, I can see half of you roll your eyes…), just wondering if this is the state of the majority of homes further out.
Mark
Towlie, it looks as if we’ve been looking at EXACTLY the same thing!
The figures I’ve been quoted are virtually identical. The only difference (or maybe you just left it out) is that the income is paid quarterly – or at least that’s what I’ve been told during my enquiries.Email me at [email protected]
Maybe we can put our heads together and come up with some way to make some cash out of this.Cheers,
MarkMark,
I’ve had some great experience working with NFC in Brissy and can pass on some names and numbers.
Basically, they’ve got virtually every mortgage/investment loan product in the country covered as best I can tell, everything from prime to sub-prime lenders, so if there’s a loan out there you qualify for (which I suppose is likely if you’re posting on these boards) they’ll help you out with all the options.Drop me an email at [email protected] .
Cheers,
Captain MarkWorked as a pilot up until 6 months ago. The work was absolutely awesome, although the people terrible.
Terrible enough that I left flying and fast-talked my way into starting my own financing company.I don’t have any IPs yet, although my mind is soaking up all the information at an incredible rate, so fingers crossed for the first one this year!
OK folks, I’ll race to you 100 IPs!
Cheers,
Captain Mark
