[KindOfNewParticipant@kindofnewJoin Date: 2009Post Count: 12]

July 5, 2011 - 12:46 pm

Scott No Mates wrote:

Is there any way that you can claim/prove that you were living at the house as your ppor?

I can't proof it. We had the house empty, move a couple of pieces of furniture in (no evidence though) and intended to connect electricity which we did not end up doing.

It is a though one. The penality tax and unpaid interst is close to $4k plus the $7k we did not pay as duty; maybe I am better off taking my losses.

I am concerned that they will come back and waive the discount, which would cost me another $4k.

[KindOfNewParticipant@kindofnewJoin Date: 2009Post Count: 12]

July 5, 2011 - 4:38 am

Thanks for the quick response. The property is in Queensland. I know I can dispute the assessment but I am concerned that they will charge me more after the reassessment. Already got a 75% discount which still ends up costing aud4,000 in interest and charges. Any help is appreciated. Regards s

[KindOfNewParticipant@kindofnewJoin Date: 2009Post Count: 12]

September 21, 2010 - 12:14 pm

Hi there,

My understanding is that you can not. It needs to be LMR (Low Medium Residential). However, you can split the block and build houses. You might even be able to split it into three blocks with 400sqm each.

Have a look on http://olr13.brisbane.qld.gov.au/website/MN_CP/bcc_user_agreement.htm

Here you can see what the zoning looks like around you. Pick you subburn and choose the layer (left hand side) Area Classification.

Zoom in if you can not see any colour scheme. The colours tell you how everything is zoned around you. Maybe there is a chance of being re-zoned to LMR if you are close to LMR land. This would double the property value in no time.

Hope that helps … if you are in Brisbane I suppose.

Cheers

Stefan

[KindOfNewParticipant@kindofnewJoin Date: 2009Post Count: 12]

September 17, 2010 - 8:51 am

Thanks Terry,

I agree with you. I am trying to cross all my T's and dot the i's.

This will take some time and I will certainly not rush into anything. This is too important. All this blogs help a lot though to develop a comprehensive financial model that considers each and every cost … kind of scary what fees, interes, etc. you have to fork out to get things done.

Cheers

[KindOfNewParticipant@kindofnewJoin Date: 2009Post Count: 12]

September 17, 2010 - 7:12 am

Hi There,

Yes, finance cost can be high but it should not be more than $100k during construction, which I intend to capitalize. Now, that's lot of cash for 9months but with an upside of up to $700k I think it is a reasonable risk to take.

The way I see it, worst case scenario I can walk away with $200k net … wish is not too bad.

Cheers

[KindOfNewParticipant@kindofnewJoin Date: 2009Post Count: 12]

September 16, 2010 - 1:07 pm

Hi wealthyjvd,

I have used conservative figures. At current rates and with the current construction cost forecast from my developer the figures would look something more like this:

$600k + $1.1m, creating a value of $2.4m, which leaves $700k. However, should unit prices drop  by 10% during construction and  costs increase by almost 20% I would walk away with $300 (minus finance cost of course).

This is what I would be aiming for, however, I also want to make sure that the downside does not kill me either. I am almost tempted to hold off for another 2 years, save more and hopefully profit from a property price increase.

Cheers

KindOfNew

[KindOfNewParticipant@kindofnewJoin Date: 2009Post Count: 12]

September 11, 2010 - 6:08 am

Dear Banker

Thanks for that. Very helpful information. Excellent.

Thanks

KindofNew