[J-louMember@j-louJoin Date: 2008Post Count: 26]

February 4, 2012 - 3:49 am

The approvals are in place so it would be a waste to not subdivide before the expiry, add to that the LG regulations have changed since it was approved and we wouldn't get approvals to do it now.

We've made a decision re the front block now, we are going to build on it.  Thanks for the advice re planner, I am going to ring the council on monday.  I've already rung the guy on the approval letter but haven't heard back – I posted here cos I'm a bit impatient

Cheers,
Jess

[J-louMember@j-louJoin Date: 2008Post Count: 26]

December 5, 2011 - 8:02 am

What are the common traps and pitfalls we should be aware of as first-time developers when subdividing a property?

[J-louMember@j-louJoin Date: 2008Post Count: 26]

July 28, 2010 - 3:20 am

If your worried about spending the balance, why don't you divert what currently goes into Acct 2 into a seperate account, and leave acct 1 and 3 in your offset?  That way you won't be tempted to spend your savings on luxuries, and still have the majority of your income offsetting your mortgage.

Jess

[J-louMember@j-louJoin Date: 2008Post Count: 26]

July 6, 2010 - 8:05 am

Thanks so much for your responses!  It seems there are just no hard and fast rules with the ATO, so it pays to see a few educated opinions. 

[J-louMember@j-louJoin Date: 2008Post Count: 26]

June 25, 2010 - 6:36 am

Thank you so much for your responses!  You have raised some excellent points that I will definitely be taking on board. 

I have 6 months to set up my 'system', and I will definitely be providing all my contracters with a comprehensive document outlining the whole project – thanks for that insight Jane!

Ana – I agree that communication is paramount!  I will be having weekly 'meetings' with whoever I get to manage the project, and also regular communication with all the contracters – I think keeping myself in the picture will help make the process a smooth one.

Thanks again for your responses – I'll ask more questions as new ones arise!

Jess 

[J-louMember@j-louJoin Date: 2008Post Count: 26]

June 21, 2010 - 4:09 am

Thanks so much for your comments! 

For my first one, I am planning on personally inspecting the property before buying, so the costing up hopefully won't be too much of an issue. 

This will also have the advantage of personally meeting the tradies before they start, which I'm hoping will that take away a bit if the anonamousness (!) and make them realise I'm a real person.

Regular 'meetings' are a very good idea and I think that outstanding communication will be the key to a successful long-distance reno.

Duckster – Re – Hire a Hubby and the Grey Army, what exactly did you use them for?  To manage the project / quaility control, or just odd jobs?

Property manager is a good idea, I know our current one will do that kind of thing for a fee, but we won't be tenanting the properties so they may not be quite so keen!

Thanks,
Jess

[J-louMember@j-louJoin Date: 2008Post Count: 26]

April 29, 2010 - 8:31 am

Thanks Terry and Matt,

Re – the norm – my baby-strategy isn't exactly the 'norm', either….   

There will be enough incentive to the owner that they will be happy to give me a $1 option, if it all works out!   Still lots of formulating and work to do though – I appreciate your advice guys.  Thanks heaps!

[J-louMember@j-louJoin Date: 2008Post Count: 26]

April 29, 2010 - 5:43 am

That's interesting about NSW – in my plan the option fee would be literally $1.00, so that opens up another new area to look into. 

Where is the best place to look / contact to keep on top of these regulations? 
 

[J-louMember@j-louJoin Date: 2008Post Count: 26]

April 28, 2010 - 2:54 pm

I've heard that in some states Stamp Duty is payable, but not others.    Thanks for your response! 

[J-louMember@j-louJoin Date: 2008Post Count: 26]

April 28, 2010 - 2:05 am

Thanks so much for your responses!

The way I intend it to work is that I would add value to the property before onselling, so there 'should' be considerable gain on the option.  I'm very familiar with share/equity options, and can see so much potential with the equivalent property options but I need to know every detail about the ways to close.  

I'm focusing on residential property, so my plan (as it stands in baby-idea form) is basically to get an option, improve the property and sell the option / property for a profit (when it suits – I will also be using this strategy to purchase).  Ideally, this should allow me to renovate someone elses property without the cost of actually buying it first, then on-sell, also without owning the property.  Effectively becoming the middleman that facilitates the reno and sale of the property.  The difference between the option strike and the sales price less costs would be mine.  In theory.

Can you see any blindingly obvious flaws in this?   Particularly legal flaws?

[J-louMember@j-louJoin Date: 2008Post Count: 26]

April 27, 2010 - 12:11 pm

That's what I hoped to hear! 

Are there any challenges in selling a property that you don't hold title for in the traditional way?  ie through an agent?   Are most agents willing to do this?

[J-louMember@j-louJoin Date: 2008Post Count: 26]

December 18, 2009 - 12:57 pm

ktastrphe wrote:

if you want to borrow more, you will need to use your LOC as a 20%deposit  (or 10% if you are prepared to pay LMI) and go through a different lender.

KT

That is exactly what I'm trying to do    I don't want ot be cross-collaterised.

[J-louMember@j-louJoin Date: 2008Post Count: 26]

December 18, 2009 - 3:12 am

Cheers, will PM Richard.

[J-louMember@j-louJoin Date: 2008Post Count: 26]

December 18, 2009 - 2:51 am

Has anyone heard of Nooo Commissions before?  I just found them on the internet. 

I am perfectly happy to go for a non-bank lender, I have found them in the past to be way better than the big 4.  'My Rate' has been really good, but don't offer offset account, which i need this time.

[J-louMember@j-louJoin Date: 2008Post Count: 26]

December 18, 2009 - 1:38 am

It still seems really low…. I want to borrow about $340!!   then use part of the the LOC to renovate it, then rent out.

We can easily repay both mortgages with the house leased out, we have such low expenses, good income and no debt  that needs our income to repay it.  Plus a great savings/repayment history. 

A broker will be the way to go for sure. 

[J-louMember@j-louJoin Date: 2008Post Count: 26]

December 16, 2009 - 9:52 am

Hey Mike,

Can you do these reports for WA?

Cheers,
Jess

[J-louMember@j-louJoin Date: 2008Post Count: 26]

December 16, 2009 - 5:27 am

Thanks Mike, a very interesting report!  Funnily though, the report gave a value $100k less than my recent bank valuation which is odd?!
The only reason i can think of is the street rating – there aren't many houses on the street and I don't know how mine compares to them, porbably better (closer) views, but not sure about the standard of the other houses.  Could be mansions, or just big without being overly luxurious?

Thanks for your time doing the report, much appreciated

[J-louMember@j-louJoin Date: 2008Post Count: 26]

December 16, 2009 - 1:07 am

Okay.  Thanks for your response!

[J-louMember@j-louJoin Date: 2008Post Count: 26]

December 14, 2009 - 3:20 am

Hi,

I recently did the very thing you're speaking of – I found it difficult to get another bank to loan me the money without refinancing my entire loan.  I am happy with my current lender, so I ended up getting a LOC for my sharetrading with them.

It seems that the banks are a little skittish about giving out a second mortgage.