Forum Replies Created
Hi Jessica
Firstly welcome to the forum and I hope you enjoy your time with us.
There are many factors to consider but personally i would start at the end and work backwards.
What are you end goals?.
Do you want to sell and achieve some capital, pay Tax on the money and move on.
Do you want to create an income stream and equity from the construction.
How will you finance the property? 3 units on the same block will fall under a residential deal with some lenders but not others.
Do you have a big enough deposit to go forward.
The cost per sq M will vary depending on what you put on the block but even if you worked on $1000 / Sq M for a square box house this should be something to go on. Course this only covers hard construction cost and non of the soft costs involved.
As i say i think you need to see what you want from the project and then work from there.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi WC
Agree with above however try and not use the word Redraw as that is totally different as has been explained.
Might want to consider a separate lender for the new IP loan.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hey Jamie keep up pal lol
You posted it 1 minute after me.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Matt
I have been up all niight reporting them and got an email from Steve too say that Dave will do it as soon as he is up.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Personally i think it is bloody fantastic.
Seems to me like Brissie is becoming cheap again.
Sure Andrew will agree.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Engelo
The refinance barrier can be a problem in the current climate especially at the higher lvr's.
Unlike JacM we refurbish all of our older properties and over half of my properties are multi unit blocks where we have purchased the entiire block inline from the original or current owner and then refurbished each unit to not only increase the rent but create equiity.
Nowadays thankfully my lvr is around 13% so creating equity is not a issue or concern.
In fact i wouldnt worry if the properties didnt even increase by the cost of inflation over the next 10 years.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As Terry has clearly explained your assumption is incorrect.
Maybe people at work are not the best for obtaining Tax advice from.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi GH
I assume you mean some new blocks being relases and not new blokes lol.
You can put any condition into a Contract i.e due diligence, part vendor finance etc etc but remember that is not to say the Vendor has to accept it. If it is a fairly new development i think getting them to take some VF is going to be tough as they probably have to have some Conditional Contracts in place to satisfy their financier.
If it is one of the last blocks left over or a battleaxe or similar then probably more likely to have some flexibility.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Admitedly it is not easy but i was lucky enough to buy at the right time in the right place and the right price.
When i first purchased an Australian IP in 1994 in Albany Creek, Brisbane i paid $61,000 for the land and $121,000 to build it.Property is now worth around $520,000 and rents for $420 / week some 17 years later.
Then went on to buy a further 39 properties which we stilll hold with a healthy passive income.
Times change and you need to adapt as you will not find a block of 24 units in-line for sale for $80,000 each 4 Km's out of Brisbane CBD but in 2001 you could do so and I did.
Buying under value properties is key now as much as it was when i started back in the mid 90's the only difference being is the initial entry price.Make sure the maintenance is kept upto date and you comminicate in a hard but fair manner with the tenant to ensure they make regular rental payment and longevity of tenure. I have many a Tenant that has been in the property for 5 years + and each time the rent has increased we are at pains to explain to them the reasons why.
Set your structure up correctly from day 1 and it will happen.
Good luck and keep us all posted.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As Michael has mentioned not an easy one but not saying it cant be done.
Without all of the data it is difficult to give you a full answer but at a 60% lvr can think of the odd lender who would give it consideration.
Hardest part is going to be to retain that low interest rate.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Gettinit
Your situation certainly needs careful handling as redrawing the deposit on your PPOR will mean you will contaminate the interest.
On the basis you will be staying in your PPOR for a while i would get your Mortgage Broker to split the loans in order to maximise the deductions.
Cheers
Yours iin Finance
Richard Taylor | Australia's leading private lender
As Alistair has mentioned assuming everything else is ok then no reason why you cant finance 100% of coonstruction plus capitalised interested with a few lenders.
Only difference is going to be the interest rate, application costs etc.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Andrew totally agree an Option Agreement can certainly work for a purchaser but of course is the reverse for the Vendor of the property especially if it is an IP.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Great first post Roger allways good to see a maiden poster promoting a business which is more than likely his own.
No i have never used a appointment making service nor would i ever do so in the future.
If you cant get referals from word of mouth or recommendation you wont go very far in the finance world.I fail to see how ringing someone and tryiing to flog them finance on the phone (which of course under NCPP you can do) is ever going to get you business.
Only my opinion.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Why cannot you not have them all as individual freehold properties especially if you dont have any shared services.
If you decide to onsell any of the units this coould be the favoured way.Depending on where in Qld you are building the Council may agree to this.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Why not post your information here on the forum for everyone to benefit as that way it sounds like you are trying to contribute rather than sell people your services at a property meeting..
There are a few Accountants that give up their time and post regularly on the forum here as well as lawyers, financial planners, mortgage brokers and a variety of other professionals.
CheersYours in Finance
Richard Taylor | Australia's leading private lender
Stewart i think what Paul is saying is that whilst the debts maybe paid they will still be showing on your Credit file and financing the deal thru traditional sources wont be easy.
I am currently in the UK however FHOG Pty Ltd a Wrap Company i own might be interested in looking at the deal if you wanted to email me over more details.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
What rate are you paying and thru whom ?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Terry has done an excellent job of answering the legal bit.
In regards to the construction loan it maybe possible to do this subject to the overall lvr however hate too say you will need to refinance as the loan on the construction portion will need to be with the same lender who holds the land as security.
Depending on when the defaults were paid and who they were in favour of i can think of a couple of lenders who might look at it.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Macca
Shoot me an email an email and i will send you over the latest project we are recomending to our investors.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
