Forum Replies Created
Hi Thomasb53,
It seems odd that a Council would be selling Crown land – perhaps there’s some mix-up in the terminology here? Might be some differences between the States?At any rate, the only party with current legal access to the land is the adjoining owner (owner of the farm) and therefore is the party given the first offer (possibly the only offer)to buy the land.
If you are able to make an offer to buy the land, simply make the contract conditional on your ability to have a carriageway easement registered in favour of the ‘Crown’ land over the adjoining title (i.e. the farm driveway). Obviously you’d negotiate the terms and the $ with the farm owner.
However, be careful how you describe this to the Council as the Council themselves could decide to pursue the option of securing a carriageway and then choose to sell the land on the open market for a greater return.
You’ve done the right thing approaching the Council to find out if it’s for sale and if you’re at all dubious about the asking price, it would be advisable to obtain a land valuation yourself.
Good luck
Leila
Hi Gilad,
An easement can only be removed by agreement with the authority the easement is in favour of (i.e. the ‘owner’ of the sewer mains). In order to remove an easement, it would have to no longer be required for its existing purpose, which sounds unlikely from what you’ve described.However, in terms of a site redevelopment, an easement need not be the end of the world – if it’s cost-effective (i.e. frees up a significant area of land) a developer may be willing to relocate the mains (if possible). Alternatively, it could be the area used for private open space. Finally, it is often possible to negotiate a buildover agreement with the easement owner. It’s worth discussing this with whoever owns the pipes. Good luck!
Leila
Alistair, Adrian, Tony, Gill,
Hope all is well with you and the other group members.
Are any arrangements underway for a future meeting? If you need help to organise, I’m happy to help – just PM or email me as I’m very infrequently on this forum.
I hope to catch up with all of you soon,Leila
Hi Guys,
Wed 18th sounds fine to me – maybe do it at a (fairly quiet) restaurant so that we can combine with dinner and keep it pretty informal? As Tony suggested at the last meeting, starting at the beginning – asset protection, finance etc. would be good topics for a speaker if this can be arranged.Gill, can you please forward me the email list as I haven’t yet received it.
Thanks!
Leila
Hi Landt,
Agents certainly come up with some classic lines, don’t they! I would simply proceed as planned (assuming it’s not sold next week), and if it sells, it sells. In terms of doing your due diligence, you’re not yet in a position where you’re happy to make an offer. If the property’s not sold the agent is being very foolish as they should be treating you as a red-hot prospect, and buttering you up, rather than indulging in fairly dismissive behaviour.Speaking generally, if it is as good a property as the agent seems to think, it would be worth trying to get the builder to inspect with you a bit sooner.
Of course if this is just a dodgy ‘sales’ tactic as you seem to suspect … Just have a laugh at the agent’s behaviour and continue to ‘run your own race’ as they say.
Hope it’s not sold and you manage to negotiate a fabulous price!!!!! If it is sold, just tell the agent that you would have bought it had you known of it earlier and ask them to give you the first call/email next time they list a similar property. You may be able to guilt them into putting you on the top of their list next time (:
Leila
Hi All,
I’d just like to second Adrian’s comments – Gill, I was very sorry you couldn’t make it and hope all’s well at your end(hope to see you and Sharon at the next meeting). Tony was a brilliant source of inspiration once again and it was great to meet some of his colleagues and enjoy the comfy chairs. It was also great to see some more new faces and I look forward to getting to know you all better and learning from your experience and knowledge.Following Frank’s presentation on Town Planning, Tony and others suggested future topics and it looks like there will be some interesting meetings coming up for the group.
Gill, if you’re not in a position to organise any meetings (I empathise, I know what it is to be very busy – I’m only sitting down right now because I sprained my ankle at the gym today – very frustrating!!) Perhaps circulate the group email list to each of us, and this way we can ensure we all keep in touch and can organise future meetings.
I suspect Tony and Alistair may be organising the next meeting, but I’m sure that after this we can take turns so that no-one has to bear too much responsibility for this. What do you think?
Leila
Hi Herb,
It sounds like you’re going well with your investigations. I’ve been thinking of doing the same with my PPOR (although this would be a couple of years away at least) which is on a large block on a main road, and near consulting rooms and a hospital. I’ve been looking at price/demand information for selling/renting out consulting rooms, and have found it difficult to come by.Talking to local practitioners who have consulting rooms has been the most informative in regard to what they pay in rent, and what they look for in consulting rooms. Many individual practitioners (such as the one I live next door to) have a preference for buying customised facilities, and are willing to pay a premium for something they can move straight into.
The only (slightly) helpful website I’ve found is http://www.medicalrealestate.com.au – this may help a little.
I personally think that selling the place with a permit is a slightly ‘scattergun’ approach. Identify the types of practitioners likely to need rooms in your area, and sell the property customised for this. To find your likely market will require some local research – but shouldn’t be too difficult. If there’s a hospital nearby, you can also enquire if they need consulting rooms or know of any specialists looking (Thanks Gatsby for that great idea).
A property near me (opposite the hospital) has been on the market with a permit for medical use for over 3 months, while a customised facility suitable for radiology (my next door neighbour) was sold quickly for a high price at a hotly-contested auction. The one that hasn’t sold needs changes to make it suitable – i.e. construct car park and medical-style fitout – and is therefore still on the market. In my opinion, this is another good example of how property buyers can lack vision. To bring this property up to the standard of the one that sold wouldn’t take much work and it would come at a lower overall price. It also has a better location. Go figure …
Anyway, I hope this all goes well for you Herb, and if you find any good information resources, I’d appreciate if you could let me know, as I need all the info I can get too [biggrin]
Kind regards,
Leila
Hi Jackal,
Congratulations on deciding to take the leap into property investing – great post, by the way. It sounds like you’re doing the right thing, getting to learn the property market and making contacts. I’ve recently bought a first IP, so I won’t pretend I’m an expert on all things related to this, but I have had the experience of having trouble moving forward, so might be able to help from that perspective.
First of all, is it a genuine “analysis paralysis”, or are you not leaping in because you feel you don’t have all the necessary information?
If it’s the former, I’ve listed a couple of things that might help you move forward. If further information is needed, I’m sure our fellow forum-ites would be happy to point you in the direction of the info you need, if you list the things you’d like to know. Alas, no-one else can ever give the elusive feeling of comfort, so you’ll just have to rely on your own research and groundwork. Try and imagine the great feeling of confidence and empowerment you’ll have once you’ve successfully bought your IPs and proved to yourself that you can make great investment decisions.
Some suggestions that might help you move forward:
Are you comfortable that your structure is appropriately set up for investing? I.e. are you doing it in your own name, setting up a trust, etc. Knowing this is right and having your head around all the tax implications can provide a lot of confidence.
Have you developed an investment strategy? Obviously this is an individual thing, but having worked this out will make it easier for you. I feel very confident in my strategy, which means that I’m happy with my recent IP purchase, and what I’m doing next, and the approximate time frame, and my overall goals.
Finally, nothing helps like having supportive like-minded individuals you can bounce your ideas off. If you’re in Melb, you might want to PM Tombola about the next property investors group meeting.
You’re in a great position that a lot of people would love to be in – don’t rush, but don’t be afraid to jump in either.
I’d wish you good luck, but I know you don’t need it!
Leila
Shawn,
I have had experience with organising assessment and remediation of contaminated sites for my employer. I would also suggest contacting the EPA Victoria for further guidance.While clean up can be done, it can be very expensive, and can take a significant amount of time. Council are likely to expect you to demonstrate that this has been done before you can redevelop. Definitely go into this with your eyes open – a fair bit of research is required – but that doesn’t mean redevelopment isn’t feasible.
If you have nothing more to go on than the word of the neighbours, you can ask the owner if they have done soil or groundwater testing. It’s also worth finding out if there are any underground storage tanks (UST’s) on the site, or if they have been removed. Contamination is most likely to have come from leaks in these. If no tests have been done, you could make the contract subject to soil tests and groundwater tests showing no contamination (of course, see your lawyer about the fine print). Alternatively, if the contract declares the contamination, find out what is involved in the clean-up and perhaps use this to negotiate on price/terms.
If it hasn’t been tested, you can hire someone to undertake an “EPA screen”, which is basic soil sampling. Again, the EPA can probably suggest accredited companies that can do these tests. This isn’t cheap, and will depend on the site’s size, how deep the sampling goes, and how many samples are taken. Following this, you can make a more informed decision as to whether to do groundwater tests. Enviro consultants can also advise as to the likely clean-up costs and timeframe involved, and whether an Environmental Audit will be necessary.
PM me if you need clarification or a consultant recommendation.
Good on you for doing your investigations – and I’ll keep my fingers crossed that this site turns out to be a ‘goer’for you.
Leila
Looking at the photo, it really does look like two houses. Some significant modifications definitely required if it’s only to be one house. Having said that, I can’t help but feel a bit sorry for the owners, even if they were deliberately trying to circumvent the ‘official’ system, they’re certainly going to be stuck with some major costs now! It’s a tough way to learn a lesson.
Leila
Hi Alex,
Here are my thoughts:For a bathroom – keep the colour scheme very neutral – white tiles are always good (when I was renting, I really preferred these as you can easily tell when they’re clean). And, of course these are easy to match. Avoid mosaic tiles – more grout = more cleaning/dirt showing. Taps/showerheads are best in a silver colour – just try and find one that doesn’t show finger marks/scratches too much.
Kitchen fittings: For door handles – keep them small unless you’re trying to make a design statement. Brushed stainless steel-look handles for kitchen cupboard doors are a good look. I love the look of timber benches, but would choose laminate for an IP based on price. This choice, of course, depends on your target market.
Cupboard doors in vinyl wrap are about middle of the range in cost, and are fairly long-lasting. New Antique White is a colour these come in, and it ties in really well with both modern and traditional styles of home. The colour is very close to Dulux Fair Bianca, which makes it easy to match it to neutral walls if needed. Also matches virtually any bench type/colour. And make sure you get good hinges on the doors, and don’t forget the little plastic dots that ‘silence’ the doors when they close.
I’d be interested to hear what you choose. Hope all goes well with your reno!
Leila
Hi Anne,
Get in touch with a land surveyor, they will be able to explain how the process works. There are lots in the yellow pages, just make sure they’re a member of the professional association – I believe it’s still called the Association of Consulting Surveyors.Good luck!
LeilaHi Wayne,
If you think it’s worthwhile to pay the $185k, perhaps you can negotiate more favourable terms – maybe a longer settlement to allow you to get the funds together?
Other than that, I know it’s easy to say, but try and be detatched. It’s just one deal, another one will come along.
Good luck!
Leila
Try Grays Auctions in Cheltenham – http://www.graysonline.com.au for details of “renovators auctions”.
Happy shopping!
Leila
Dates on the Section 32 docs can also be a giveaway. Recently saw one with docs issued a year ago!
Haven’t heard of any websites that can tell you this, but if you find a source of this info, I’d be interested to know!
Sometimes it can really help to have that little extra bit of info to help the negotiations along!!!
Good luck,
Leila
Hi JD,
It’s worth a try! Probably better than a calculation.
Good luck,Leila
Hi Woodsman,
On the whole, I would say that the intentions of Melb 2030 are good. I particulary like the intentions to prevent urban sprawl and protect Green Wedge areas. Obviously, there are flaws – such as highlighted by VCAT decisions relating to development in “Activity Centres” – and government has not responded well to community pressure to act on these.
In my job, I’m involved in undertaking land rezoning, subdivisions and planning permit applications and I can say that the one definite impact I’ve seen as a result of Melb 2030 is an increase in time taken to respond to all applications.
Also, Green Wedge Zones have created issues due to the 40ha minimum lot size (unless Council schedules say differently). Even a boundary realignment subdivision in a GWZ is gone through with a fine tooth comb.
That’s my 2 cents.
Leila
Hi JD,
I have to agree with the opinions expressed by Michael in regard to legal problems arising about how profit share should be calculated. I too have seen this become problematic. It can occur when the terms of the contract are being negotiated, or later down the track when you discover that the expectations regarding the meaning of ‘profit’ differ between the parties. What you’ll find is that you can pay huge legal fees to have the profit calculation method determined and later re-examined.I have seen the scenario where ‘profit’ is questioned post-sale, and the original calculation method tested. It’s time consuming, costs a fortune in legal bills (and accountants/auditor too) and is something I think you’d be better off to avoid if you can help it.
Definitely buy the backyard if you can. This also gives you the flexibility to rent out rather than sell once the work is done. In terms of buying the back yard, in my opinion it would be best to buy this as a subdivided lot – i.e. negotiate with the owner to do the subdivision as a condition of the contract and have settlement on registration/issue of the new Title (with you paying all subdivision costs). I’m sure Michael can offer you some more input on this.
I know it can be discouraging when other people don’t support your ideas, but the intention of those on the forum is simply to share their experiences – not to discourage you from getting into investing and making a great success of it.
Good luck with whatever path you choose to follow – i.e. negotitating profit share/ buying backyard outright. You’re already on the right track in terms of doing your research first. So many people forget to start with that!
Leila
Thanks for all the great suggestions – I’m putting together a folder with all the ideas and have been out today costing new timber windows – the old aluminium ones are the big ‘problem’ area for the house, along with the brick cladding.
The point several of you made about shopping around was reinforced for me today. My husband and I are trying to match architraves for our home, and we saw prices varying from about $3 to $10 per metre for these. Neighbourhood you’re shopping in can really make a difference …
Am also going to head for the auctions soon for bathroom vanities and taps and new toilets (I suspect the current pink plastic toilets wouldn’t be a great selling point?!)
Light fittings are also on the list, and I agree on the points about downlights. I’m thinking of using these in the “big ticket” areas of the home – kitchen, lounge, bathrooms, master bedroom and parents retreat/study – and sticking to basic light fittings for the other bedrooms, corridor and laundry. Any thoughts?
The adjustable shower heads are a good point – luckily I already have a nice adjustable one that I won in a raffle last year. It’ll be nice to finally get it off my dining table [wink2] Was thinking about keeping it for myself, but since it was a freebie, I suppose I could bring myself to part with it. [biggrin]
I’ve also been starting to look at similar houses to find a ‘wow’ exterior colour scheme – so far no success – but I’ll keep looking. After my husband and I painted our house and fence we had lots of people come past with colour charts and digital cameras asking for details of the colours, so it looks like it’ll be my turn to do this to someone else!
Good point about the fridge space – that is definitely going to be problematic with this reno house. Current fridge space is too small and I’m tossing up whether to leave it, or to reconfigure the room. Sounds like reconfiguring may be on the cards.
Thanks again for sharing your great ideas and renovating successes. Settlement is in May and we don’t have access until then, so I’m happy to hear any further ideas, because I’m still in the planning phase for a while (completing reno of PPOR while waiting).
Leila
P.S. Kerwyn – only $3k spent on renovation and $45k valuation increase – that’s awesome!
Wow – talk about some pretty cool ideas!
Kitchen hose tap, skylights, bathroom dresser, outdoor areas, knocking out/removing walls are all brilliant ideas. Some of them clearly a bit more challenging than others. Also think finding a cheap source of furniture is really helpful as suggested.
Textured paint sounds very interesting – luckily my reno place’s walls are okay, but I might just try it anyway!!
And, since reading g7’s ideas, all I seem to see are shaggy white rugs – everywhere – great idea!
Any thoughts on the best choice of exterior colour schemes for best street appeal?
Thanks again for all the fab ideas and keep them coming![biggrin]
Leila
