[digitalmbsParticipant@digitalmbsJoin Date: 2007Post Count: 17]

May 10, 2009 - 12:02 am

Qlds007 wrote:

DM

Probably need to no more about the deal but have done several deals like this previously with no problems.

As i say more information needed first.

Thanks Richard,

Please PM me with information you require and I will revert back with the info.

regards,

[digitalmbsParticipant@digitalmbsJoin Date: 2007Post Count: 17]

May 9, 2009 - 11:59 pm

kum yin lau wrote:

Hi, can this be done?

Buy it as a residential property [house and land] I'd go through another lender.

Then with all the permits etc, apply for construction loan. The construction loan will most likely be classified as a business loan. Fees are appreciably higher but interest is charged only when building costs build up.

If you can't manage the holding costs, be very vary. It might be that you're position can be precarious.

Good luck,
KY

Thank KY,
That is what we are trying to do i.e. at present buy house and big backyard as it is as normal residential loan, and then rent house existing house (rental would be $400pw).

Then later on once we get new permit approved for 6 new units then we will worry about getting construction loan.

We have done numbers based on 6.5% fixed rate for 10 years, there will be negative cashflow to hold this prop, however we are happy  and comfortable to have this negative cashflow. Also, for construction we are prepared to go for commercial loan and it will ok at 70% because at that time we will ask for re-valuation and get a topup which would be used in construction.

Hence, at this stage construction cost is not issue, main issue is to get this house + land settle. Another thing is we have penty of time because settlement is at the end of August. hence, by that time out permit/DA will be sort out as well, hopefully.

[digitalmbsParticipant@digitalmbsJoin Date: 2007Post Count: 17]

May 9, 2009 - 11:53 pm

Scott No Mates wrote:

Digit, the property is a development site and is required to be valued by a valuer as such, taking into consideration the highest and best use of the property.

As a matter of interest, what did the banks valuer come back at? Was it similar to the value that your valuer came back with? Did your valuer assess the site in its current form, zoning and at its H&BU or based on the current DA? (if it is the latter, it may pay to get the valuer to revise the valuation to reflect the H&BU).

Scott,  thanks for the reply.
Bank valuer didn't give any figure, he is not prepared to give any value if application is for residential loan, he said to bank that get it under commercial loan application and then we will value accordingly. Our valuer did value on its CURRENT form i.e. Existing house + extra land in backyard + $25K for the value of the permit for 4 extra units. Hence it is based on current form , zoning etc.. He is/was not aware that we are applying for new permit/DA for 6 extra units.

[digitalmbsParticipant@digitalmbsJoin Date: 2007Post Count: 17]

September 14, 2007 - 6:46 am

Hi,

I am in Melbourne, but we have construction company in India. We have couple of big project going at the moment, specially in GOA INDIA. Goa is one of top tourist place in India surrounded by coast and beach. We are building fully furnished resort type apartment for short to medium term accommodation for tourist. As such we are looking for investors who are keen to invest. Project gain for investment is between 14-17%. For full details pm myself and we can get together and have chat.

regards
DM.

[digitalmbsParticipant@digitalmbsJoin Date: 2007Post Count: 17]

September 10, 2007 - 3:17 am

L.A Aussie wrote:

Doesn't sound that great a deal. This is a business transaction, and emotion should not be a factor, and if the deal doesn't stack up FOR YOU you shouldn't do it.
If he needs to sell as you say, you are giving him a win by buying it at all.
You could always tell him it is only worth $260k and offer him $250k (assuming he needs the cash as you mentioned) and still with the 7.5% lease back. There's nothing to stop him from re-negging on that down the track though.
Especially if you reckon it will only be worth $260k in 2 years; why would you pay more than $250k and then sell for $260k in 2 years; the cap gain tax will wipe out almost any gain.
If you don't sell after 2 years, and then have to rent on the open rental market, you may not get a return anywhere near 7.5% and the cap gain hasn't been that good.
I can only see the upside being a short-term decent rent return with some good on-paper deductions. Your only hope would be a better cap growth than you've predicted.
If you could get it for around $220k with the 7.5% leaseback then you may have a decent deal. Be prepared to make a very short settlement on that offer though.

Agreed, thats what I was thinking to get good rental return for 2 years and deduction to offset income ( I am in highest tax bracket) and also I was thinking to ask him to pay rents in advance . I will try to nego. 2 years rent in advance that way I have a guarantee that he won't disappear.

thanks
DM

[digitalmbsParticipant@digitalmbsJoin Date: 2007Post Count: 17]

August 31, 2007 - 2:57 am

syee wrote:

Anyone recenlty handle any building with Natioanal builders?  If so, if good experience, can you recomend the name of that builder? Thinking of purchasing a land and house package with them but heard some  real bad remarks.  Any opinions on better builders that do house and land packages?

Forget it, stay away with them. they are not even worth to give a try. They can't deliver thier promise of 14days quotation on time. better go with others.

DM.

[digitalmbsParticipant@digitalmbsJoin Date: 2007Post Count: 17]

August 30, 2007 - 4:52 am

digitalmbs wrote:

Alright guys,

Here is an feedback. I paid initial deposit $500 to do soil test and initial quotation. At the time, sales rep said they will get back to me in 14 days. Today its already been 6 weeks and no contact yet.

After 2 weeks I got a mail stating that it will be ready on early next month. Hence I called sales rep. that if you can't even deliver initial quote which you promised in 14 days then I don't want to continue with you guys. He said 14days are 14 BUSINESS days and it will be ready next week. Since then its already 2 weeks but no contact yet. Day before yesterday got message from sales rep that stuff is ready and someone from head office will call me to book an appointment but no contact yet.

lets see.. wait n watch for an update on appointment. I wonder what will happen once I am looked into thier contract

My free advise to Mr Barry Suckling, Director of NBG is

1) Never promise something which you can't deliver. in other words always "Under Promise and Over Deliver" thats the key to successful business.

thanks
DM.

"brittany" wrote:

Doesn't sound good!!  Our contracts were due this week – I rang yesterday and requested they be mailed so I can go through them and then meet with them with any questions.  Hopefully they will be in the mail tomorrow!

Status —

Ok got call from head office to book an appointment, and she said when are you available, we have spot at next week Wednesday otherwise following week. I said,

1) You said deadline is already gone, and now I am not interested anymore and send it to my address I will have look and if I will have any question I will get back to you.

2) You are giving me appointment in your time not my time.

She replied, "we don't give or send our quotation out and please don't tell this to me, I am just trying to book your quotation appointment"

I said well then ask the sales rep to give me a call. waiting for his call, lets see.

DM

[digitalmbsParticipant@digitalmbsJoin Date: 2007Post Count: 17]

August 29, 2007 - 3:12 am

Alright guys,

Here is an feedback. I paid initial deposit $500 to do soil test and initial quotation. At the time, sales rep said they will get back to me in 14 days. Today its already been 6 weeks and no contact yet.

After 2 weeks I got a mail stating that it will be ready on early next month. Hence I called sales rep. that if you can't even deliver initial quote which you promised in 14 days then I don't want to continue with you guys. He said 14days are 14 BUSINESS days and it will be ready next week. Since then its already 2 weeks but no contact yet. Day before yesterday got message from sales rep that stuff is ready and someone from head office will call me to book an appointment but no contact yet.

lets see.. wait n watch for an update on appointment.  I wonder what will happen once I am looked into thier contract

My free advise to Mr Barry Suckling, Director of NBG is

1) Never promise something which you can't deliver. in other words always "Under Promise and Over Deliver"  thats the key to successful business.

thanks
DM.

[digitalmbsParticipant@digitalmbsJoin Date: 2007Post Count: 17]

August 27, 2007 - 11:42 pm

Terryw wrote:

If you already own the land, then transferring to a trust could incur stamp duty again as well as possible CGT and legals fees etc.

Thanks Terry,

What if I donate it to trust for free?
Who should I talk to setup trust and mortgage for best tax efficiency and asset protection? accountant or lawyer or tax agent or financial planner? is there all-in-one profession for this sort of things, or else if you guys can recommend firm where I can go to. I am happy to invest in good advice because I am thinking to buy IP instead on building on current vacant land.

thank you for all your information.

regards,
DM.

[digitalmbsParticipant@digitalmbsJoin Date: 2007Post Count: 17]

August 27, 2007 - 3:51 am

Hutch wrote:

Why cant you get in contact with the original vendor and/or solicitor and explain the situation to them?
You would be unlucky if their lawyers went broke and closed up shop as well.

Thanks Hutch, I will try that, lets see hopefully I am not that unlucky.

thanks
DM.

[digitalmbsParticipant@digitalmbsJoin Date: 2007Post Count: 17]

August 27, 2007 - 3:36 am

Qlds007 wrote:

Before we go down the structuring avenue:

1) Switch the P & I repayments on your loan to interest only and if you want to increase the repayments on your PPOR by the savings.

2) See if you current lender has a 100% offset account linked to your home loan. If so have all of your income now and future into this account and have the interest only repayments coming from this accounts.

If you are paying variable rate you should be able to do better with this. Who is the current lender ?

You are too late to change the title of the land from your name to a Trust name without triggering a possible stamp duty and CGT issue. Still maybe viable but consideration needed before jumping in.

More information needed to give a qualified answer.

Thank your Richard,

to answer your question, current lender is CBA

thanks,
DM

[digitalmbsParticipant@digitalmbsJoin Date: 2007Post Count: 17]

August 27, 2007 - 1:17 am

Well I am, but only if you are in Melb.