[dnh83Member@dnh83Join Date: 2009Post Count: 81]

April 29, 2010 - 6:39 am

Thanks YI

It’s only goin to be listed for a month, that’s why I’m relucant to pay, but I certainly can see the benefit as yes it will be listed in local rags and on the net.

And $350 is small coin when you consider the sale price.

Just figured it was a cost he agents wore to get your business.

Cheers

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

March 9, 2010 - 10:16 am

Hi Priya,

I feel a little cautious putting forward my thoughts on this one as I've never actually bought a battle axe block, so please note that my comments below are only my opinion, and I can't provide any real firm supporting facts to the comments I've made.

I have a block of land that I have just sub-divided (battle axe) with the existing house at the front of the block.  I will be building a brand new house out the back and see some great benefits with owning/living in a battle axe block.

A lot of the literature i'm reading at the moment talks about 'what the market wants' and it's evident that low maintenance properties are certainly a popular option.  People want the flexibility of owning their own space, but don't necessarily want the responsibility of large property maintenance.  This is a big plus for the battle axe blocks given their generally small size.  They also provide a level of Privacy that you don't get from a street frontage property.

Additionally, the availability of land within close proximity to the major amenities (transport, shops, schools, etc) is becoming very rare, this is one reason why the battle axe blocks are popular (both with developers and purchasers).  You need to look at the location of this property and it's proximity to amenities (does it have a solid base around it to maintain a strong market value).

I have also seen situations where a block is sub-divided and sold off as 2 separate properties, with neither loosing any value due to the sub-division (it seems that the reduction in actual land size doesn't affect the final sale price – there's also an interesting article about this in the March 'Australian Property Investor' magazine, starts page 94).

I'm getting the vibe that this is a 'home' that you are looking at buying, with this in mind, you need to make sure that you are happy with your purchase.  There are plenty of properties on the market at any given time, each one has its own pros and cons.  Work on identifying what you can live with, and what you can't.

One final thought, everyone has their own tastes.  What you love…someone else will hate, and what you would never purchase…someone else will be happy to buy (eg: some are happy with Battle Axe blocks, and some aren't). 

Based on this, i'd suggest you buy what will make you happy to call 'home' if that's your overall intention.

Hope this has been some helpful food for thought.

All the best.

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

March 9, 2010 - 9:34 am

Glad I came across this post…I've got a similar situation, supposedly 'primed' weatherboards in place awaiting painting (luckly this hasn't been done yet)…painting quotes are starting next week…

But in addition to this, I also have the 'Pink' pre-primed balustrading on my verandah awaiting paint.  Does this also need to be sanded prior to painting, or is this a different product (is just the pink pre-primed wood from Bunnings)  ??

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

February 3, 2010 - 11:36 am

Hi All,

I'm in a similar boat, and I don't fancy wasting too much time or money searching for the right accountant.

Based on this, can anyone throw a few suggestions out there regarding the types of questions to ask an accountant when you meet for the first time – with the intent being to determine if they 'fit the bill' for my situation…

Eg:
– How many Property Investments do you own yourself
– Have you set up your own Trusts and Companies for your investments, and do you set these up for your clients
– What are the benefits of setting up a Trading Company when it comes to Property Investing

These questions are specific to my situation and will be used to identify if the Accountant knows their stuff.

Am I on the money here or are these questions Accountant wont want to answer ??

Cheers,

Darren

(PS – My situation = Trading Company and Trust required with the intent to maximise profits and minimise tax through the turnover of renovated houses, sub-divided land and new houses/duplex's…)
 

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

February 2, 2010 - 11:25 am

Thanks for the info all…

I'll certainly hit up GJ Gardner…I automatically assumed they'd only build their own designs…upon reflection that's probably a pretty naive assumption…

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

January 19, 2010 - 1:08 pm

Hi Nick,

Last contact I had was Homework Assignment #2 last year…

I dare say there's been some well earn't holidays over the festive season which may be why we haven't heard anything…

I'm looking forward to it kicking off again this year, especially the networking group that was discussed for all on the program…will be good to hear about how everyone is working towards their goals…

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

January 19, 2010 - 12:30 pm

Hi Brad,

I've just started a similar project myself and have to say that if you approach the City Council the right way they are normally more than happy to provide you with the information you need.  Every Council is slightly different, best to talk direct with them.

There will normally be a planning/development section within the council, try and get put through to that department.  Once you've done that, try and talk to someone who deals with the planning and development of the area you're working in.

If they don't feel like being too helpful on the day, the least they'll do is flick you the information you need (just means you'll have to do a fair bit of reading)…All planning and development guidelines exist as public documents, so you shouldn't have any trouble getting your hands on them (figuring out what's relevant to your situation will be the challenge)…

Hope this has helped in getting you started…

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

January 15, 2010 - 10:56 am

So this is perfectly legal ??

What are the requirements, just a Diary entry and the businesses ABN ??

Where would I stand if I was investigated – or worse, if the provider completely denied doing the work altogether ??

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

January 15, 2010 - 10:47 am

Thanks Terry…

I'll be honest, it still seems like it's a little grey to me, mainly because the nasty 'Fraud' word pops into my mind…

Claiming GST when GST was never paid sets off alarm bells…

Is there something i'm missing here ??

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

January 14, 2010 - 11:15 pm

Can you claim Cash Payments ????

I've always been under the impression that you can't, and if you do, you jeopardise the business you received the service from ??

I've still got alot to learn about Tax and Benefits, but are you able to elaborate any more on this ??

Thanks Terry.

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

January 8, 2010 - 11:20 pm

>> design

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

January 8, 2010 - 11:19 pm

Thanks Adam – I'll download it and give it a go.

Anyone else using specific desing software ??

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 25, 2009 - 8:47 am

Hmmm…So how do you prove to the bank you have done the sum's without showing them the figures ??

Yeah Richard, that's all been calculated…this is the first of many more to come…and I suppose I was expecting a little more from the bank than I actually got…

I learn quickly from my mistakes, I would normally have a mentor with me but unfortunately he was OS when I signed the docs…

As mentioned – Welcome to the World of Property Investing !!

Thanks guys – will keep you posted  

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 24, 2009 - 11:47 pm

Thanks Terry…

The Bank know's about my entire plan, and they have known about it from day one (Purchase House needing Reno, Sub-Divide, Build, Sell)…

They've got all of the figures that prove I can cover the costs (selling, holding, etc including profits and ROI's for 3 different options)…I've even given them all of the project time frames and expenses (right down to individual figures for things like water meters, power poles, etc)…I wanted to make sure they had no reason to deny me the cash.  This project is based on a model that is very successful for some mentors i'm working with…Maybe I've let them have too much info !!

What annoys me is that I had the oportunity to get the cash from a private investor (paying a higher capitalised interest once the entire project was finished)…I said no to the investor because the bank offered me the cash upfront…given I'm new with the bank I wanted to develop my relationship and risk rating with them to help with future loans…

The $50k was always meant to be Cash that I can use however I want…and once the sub-division is complete (mid Feb), I'd then use the equity in the block of land to finance the build (additional $160k needed)…This cash would be needed from Feb to August and now I'm concerned because it looks like I'll have to apply for the additional 'second loan' for the $50k i've borrowed, after the $160k has been acquire…I can already see this ain't gonna be pretty !!

Hmmm…I've got until next week before the funds will be drawn down (will happen on my request)…so hopefully I can still get this structured better for my situation…

(lesson learnt – no matter how soon you need the cash – don't sign the contract unless you have all of the details…happy this mistake has been made at a very early stage of my investing career, with only small figures…)

Would love to hear any additional thoughts on where I stand / what I could do…

Thanks All…

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 24, 2009 - 9:37 am

Thanks Dan,

I know there's still alot of the finer details to work out, I'll be lining up an Accountant in the new year (based on some of the recommendations from this site).

I'm based in Brisbane, and a few have been mentioned in previous posts…if anyone's reading this and know's of another Accountant that specialises in Trusts and Property Investing, I love to acquire their details – happy to accept PM's for personal details like this.

Cheers in advance…

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 23, 2009 - 12:11 pm

Thanks Terry – I've been told that having a few of these structures once the portfolio builds size is a good option…

There's so many more questions that I have relating to Trusts, Companies, Trustees, etc…I think I'll do a little more reading first as this might answer some of the common questions I have…

Thanks for your input – appreciated…

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 23, 2009 - 7:03 am

Thanks Terry,

Paragraph 4 where you’re talking about the $2 Company has thrown a small spanner in the works, I think this is where I’ve hit my current limitation of understanding regarding Companies, Trusts & Trustees.
Here’s why…

My original Proposed Company/Trust Structure was going to be like this:(I’ve attached a Picture to help explain – http://www.4shared.com/file/179391320/5f8b53f8/Co__Trust_Structure.html)

Company A
Trading Company that buys and sells property (stock) to renovate, sub-divided, build and sell.  This is where the majority of business is conducted and it will accumulate the most amount of income and expenses.  (Plan is for most deals to be done under 12 months).

Discretionary Trust
Trust used to receive the profits made from Company A, which eventually get paid down to the beneficiaries as deemed necessary (one of the beneficiaries is Company .

Company B
An Investing Company that receives frequent beneficiary payments from the Trust, which then provides finance to Company A for future purchases.

Now you’ve thrown Company C into the Mix, and I’m wondering if my whole proposed structure is flawed (which is highly possible )… 

Presuming the structure above is suitable, would I then look at attaching Company C into the Trust (as the $2 Company), which acts as the Trustee ?? 

This is where I’m getting a little confused…who actually owns the property, Company A or Company C…if I’m sued, who do they go after ??

PS – I haven’t sought Legal advice yet as I want to know what questions to ask when I look to engage someone.  This way I’ll know I’m paying for someone who knows there stuff !!

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 22, 2009 - 7:36 am

Hi Terry,

Can you elaborate on Discretionary Trusts ??

In the new year I'll be setting up a Company and a Trust to work side by side – my advice so far has been to set it up as a Family Trust.  What is the difference between the 2 ??

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 21, 2009 - 11:36 am

Thanks All…

Being new to the PI game I've never really considered using anyone other than the big banks to get finance (just figured they'd be the best to help)…Looks like I need to expand my horizon's a little…so based on this, here's a few Q's to help me learn a little more:

1 – What are some of the Pros / Cons of using smaller lenders ??
2 – Can the customer ever loose out if the smaller institution goes bankrupt (does this ever happen) ??
3 – What are the Interest Rate Percentages like in comparision to the larger banks ??
4 – Are there often higher fees with the smaller lenders ??
5 – Will a smaller lender consider you if you have other loans with large banks ??
6 – Generally Speaking, do the smaller lenders have the same stipulations (eg: 80% LVR, etc)

I'm sure there's plenty of other questions out there, just want to try and get the ball rolling on this to help educate those in my position.

Thanks in advance for your help.

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 20, 2009 - 11:33 am

Thanks