Should I go with the top up as opposed to a LOC?

Jamie – it's a family trust.

wilko1 wrote:
Hi mosics which bank did you use to do that?

Did your original loan go into a term deposit first (as security) and then onto the new property or was it a same day  settlement 

Same day settlement (which was the most difficult part of the deal). It was with Commbank.

We did a simple security substitution in 2010, loan on property A which we sold and then transferred the loan to property B – no paperwork needed (which was good because our financials we rubbish at that stage having just started self employment).

This was post GFC and really simple.

Great, thank you!

I have a different opinion to those above.

My first 2 homes were built and I made a lot of money on both within a year. The key thing is looking at land prices vs house prices. Often land in new estates is more expensive than a vacant lot in an older estate. Having a good builder also makes a huge difference. I was able to negotiate really…[Read more]

So would it be better if we did make some money from the land? We could start selling stuff (we have a house deposit eating the grass down in the paddock ) and I know it affects it but don't know if it is good effects or bad…

I have tried to do a couple of deals like this in the past. One thing to be a bit cautious of is the real estate agents. Many people think that they are experts in property – which is only half right. There have been so many agents I have come across who don't even really know what vendor finance is or only have a very tenuous grasp on it. Many of…[Read more]

So interesting to read back over all the post and also see where I was 2 years ago!

Like so many have said, it's about financial freedom. Freedom to raise the kids, to work in jobs that you are passionate about but that don't pay anything etc.

This property game sure has taught me lots (mainly patience!) and that you have to have an underlying…[Read more]

I don't know how relevant this is given the age of this thread but I have seen some properties for sale for under market value that are the result of divorce proceedings. It looks like it's the new 'deceased estate'.

Vacancy rate is now 2.5%. I agree about the holiday and investment thing! The reason we didn't buy on the spot (which we got very close to doing).

Body corporate is high in the resort buildings (as much as $10,000 per year) but your right about the smaller buildings being much more affordable. 

The thing that appeals to me about Cairns…[Read more]

Awesome to have all these resources in the one spot. I've just gotten back into the game after a bit of a hiatus to focus on family. Back with bells on now though

Thanks guys! Maybe I should have just trawled through all the sigs – I do think it will be great to have all the blogs in one spot though.Off for a bit of reading….

Thank-you! I'm really hoping there are lots more bloggers out there and if not hopefully this will prompt them to start!!

I agree with Intrigue, when I first started (not that long ago) the first thing I saw on property development was Carly's free DVD. While it was great, it did give me a bit of a false idea that this would be a quick, easy way to make billions.Especially the bit where she says "just spend a couple of hours a week, find a deal, find a developer and…[Read more]

There are other things you can bring to the table if you have no money. I do sometimes feel like it is a bit of a fairytale but there are people out there who have money and don't have the interest/inclination/time to look for deals. I have found two such people so far (both through free seminars!) and am now constantly looking for deals for…[Read more]

celmel wrote:
Malmsbury Central Vic , Smack bang and central to Melbourne Bendigo & Ballarat , almost moved once coudn't do it

Hey Celmel I'm in Malmsbury as well! We just moved here in July this year though.

Margin on development cost

Hi Cathy,I do think there can be profit in what you are proposing. I couldn't say how long it would take. Getting it through council would be the hardest and the longest part though IMO.I have been told that it is about $20K per block to subdivde but that is in my council, I'm pretty sure every council differs. Just one other thing – sometimes a…[Read more]

Heya, I just sold in a country town and paid 2% plus GST and $500 advertising but I am starting to think this was a bit exceptional. 3% sounds pretty standard.

Thanks Scott.I'm working on a deal that has an IRR of 22.42% and an MDC of 43.80% – is that fairly typical? It would be about $1.6m down with a profit of around $730K. Just trying to work out what good deals look like.