3 Years late on the take up that one Don.

Mike became a client of ours in June 2008.

Cheers

Yours in Finance

Phew glad you corrected that Michael as my last unit block i purchased we ended up paying on Aggregation.

Of course there are a couple of legal ways around it if you use different entities and adjust the purchase price.

Recently purchased a block of 4 2 units in my SMSF and 2 in personal names. Keeping then for 366 days meant i paid 10% profit in the SMSF yet still claimed the CGT discount personally.

Just a matter of weighting the units accordingly and putting up a good case with accompanying valuations why 1 unit should be worth more or less.

Cheers

Yours in Finance

EV

Reason no one has answered to date is that it will vary from State to State and Council to Council.

In essence once the surveyor has prepared the plan of subdivision and lodged this with the Local Council you will receive confirmation that the subdivision can proceed and then your Solicitor will lodge this with the Dept for Natural Resources.

You will need the lenders consent and this will need to be lodged at the time of registration. 

Along the way you might be up for contributions, professional fees and additional Rates etc.

Assuming everything in regards to the Building is ok you should have too many conditions imposed.

Cost wise cant comment as i havent a clue where the project is based.

All in all it is a fairly easy process.

Cheers

Yours in Finance

Your Broker should be able to give you some further

There are mining towns and mining towns.

90% is doable even 95% if you were living in the property whilst you worked in the mines but like anything depends on the rest of the deal.

Cheers

Yours in Finanec

Hi Ash

Hate to say Yes it does apply to you as the purpose of the redrawn funds was for personal purposes.

The way your lender should have structured the deal originally was an interest only loan with 100% offset account.

An relatively expensive lesson learned i feel.

Cheers

Yours in Finance

T Alistair is based in Melbourne and an excellent finance broker with vast experience in development finance.

I personally would drop him a line and get him to organise the finance for you.

At least this way you now it will be done properly.

Cheers

Yours in Finance

Hi Finden

Firstly welcome to the forum and I hope you enjoy your time with us.

Appreciate the wrap Jac you are too kind.

As Jac M has mentioned lenders love to take all of the lovely equity in your PPOR as security in such circumstances and for the unsuspecting investor it sounds like the way to go. You will be told that it is easy to organise, cheaper (actually incorrect) as well as keeping everything with the same lender and building a wonderful credit record (again absolute rubbish).

With all of the figures to hand it is difficult to comment but in realty what i would be doing is setting a separate interest only equity loan sufficient to cover 20% of the purchase price of the IP plus acqusition costs (assuming equity in your PPOR allows) and then taking out a separate 80% standalone loan with a separate lender secured SOLELY against the security of the IP.

Once the IP increases in value get this revalued and draw back the equity to 80% of the new valuation.

Use the funds raised to pay down the sub loan on your PPOR which you used for the 20% deposit and eventually your IP will be totally standalone.

Subject to equity of course the process can be repeated over and over again to accomadate further IP purchases.

Structured correctly will mean you have the ability to keep on buying subject to income and not at the whim and a prayer of the lender. There are also 101 other reasons why you would not cross collateralise your 2 securities and if you drop me a line i can give you a list of some of the other benefits. 

Cheers

Yours in Finance  

Depending on the number in the block and the amount of equity you have in the existing IP's financing the construction shouldn't be that difficult.

Lvr will be limited being expats but then again many people do it.

Cheers

Yours in Finance

I am slightly older than Nathan so he has plenty of time up his sleeve.

I started buying my first property in Oz the year i after i arrived from the UK in 1994 and purchased solely in Brisbane and SE Qld.

We focused on multi unit brick blocks and subdivideable land where we could build multiple dwellings / townhouses on them.

In a lot of cases we sold off the front block which was often a Qlder and kept the 3 new townhouses at the back.
I purchased a waterfront property in Palm Beach for $292K in 1996 which we lived in for 4 years and today it is worth around
$1.4M. Wouldnt sell it though.

Now with 40 properties and a market value of around $18.5 M v loans of $1.4 M i must admit i wouldnt do anything different.

Buy & hold strategies are excellent in boom times or if you can pay down the debt but if you are trying to create quick equity you need to add value by doing a subdivision or renovation or something similar.

Anyone can buy a IP and sit on for 20 years and then wonder why they only own the 1.

In my current position i intend to clear the balance of the loans outstanding within the year and then can reflect on what we do with the equity and cash going forward.

To all of you starting out dont think it cant be you in 5 – 10 years time in the same position as Nathan or myself as with the cirrect structure and an income or ability to finance deals on an ongoing basis dreams do happen.

Cheers

Yours in Finance

As i mentioned in the reply to the same post in another section of the forum you would not use your PPOR to solely secure the loan.

Carefully structuring is required to avoid contaminating the interest and in my opinion the investment sub loan secured against your PPOR would have a 100% offset account attached to it to save you even more.

Cheers

Yours in Finance