We agree Colin.

We are presently configuring a plug in that will allow logged in members with various ‘view options’, including latest posts, active topics, etc.

We are also upgrading the page that comes up after members have logged in so they can have a list of new posts since they last logged in.

Expect something within the next 2 weeks.

– Steve

Granted,

In respect to your questions:

1. You should pick an area that you have an interest in, that you can afford to buy in, where there is a market for your end product, and where the planning laws are suitable for the strategy you hope to execute. Good deals exist everywhere, provided you can solve them in a cost effective manner using skill and expertise.

2. My understanding is that you need to own the property first, but that you can sell the proposed land parcel before a new title has been issued on the condition it is issued. Check with a lawyer in your area though as different jurisdictions have different requirements.

3. As for an example, grab a hold of the revised edition of From 0 To 130 (book) as I walk through a sub-division I did in it.

All the best,

– Steve

Right… let’s take a closer look at this idea.

Equity can be defined as the difference between a property’s value and the amount of debt carried against it. Alternatively, it can be defined as the difference between current market value and carrying cost.

I think in this case you are asking how can I manufacture an increase in value by splitting one land parcel into two or more sub-parcels (literally sub-dividing). This is certainly possible and should be the goal of every investor pursuing this strategy.

The key here is that the sum of the parts needs to be greater than then whole (plus transaction costs).

Some areas are better than others for this sort of strategy. Typically those areas where smaller land sizes are not seen as a disadvantage deliver good profits, or where larger land holdings are too expensive for the average buyer but where smaller land parcels are more affordable.

Just be careful of transaction costs, time for planning permits (and interest costs while holding), GST and sub-division traps (like setbacks, easements, cross overs, access to utilities, etc).

Of course, you need to also consider what can be done with the land once sub-divided. That is, what sort of dwelling can be built on it, and whether that dwelling will be appealing for the target market you plan to sell to.

Oh, and a final tip… in most jurisdictions you don’t have to wait for the sub-division to go through before you sell. In other words, you can normally sell with a clause subject to the sub-division being granted. Be sure to check with a lawyer in your area first though.

– Steve

I won’t be bullied Freckle.

You came to this site with a false name, your mask your IP, you write abusive and disrespectful posts.

This is my site, paid for by my money, and it is a community that I have held dear from day one.

Enough is enough.

– Steve

EngeloRumora wrote:

Where would one invest right now in Australia to get the best BANG for the BUCK?

Depends what you’re looking for. If it was generic growth I think Sydney or Brisbane is better value than Melbourne, Perth or Adelaide right now. Of course, things will change over time.

– Steve

Steve McKnight wrote:

Bit hard to actually post a new forum topic took too long to find. A link at the top of the page would be easier.

Okay. Noted. – Steve 

Hi,

To answer your questions:

1. How does that work, do I get to claim that back every year?

As has been mentioned, it is the interest on the loan, rather than the loan itself, that is tax deductible. Principal repayments are not tax deductions.

2. How much would I get to claim back on $450,000 (my current income is very low only 30k)

None of the $450k is tax deductible as mentioned above.

On a sidebar issue, be careful not to have tax issues (ie. the tail) wag the property dog.

Your investment should meet your strategic needs in respect to delivering your desired profit outcome first and foremost (within your parameters for time, money, skill and risk tolerance). Tax is important, but it is not the prime investment consideration.

I’m not sure if LMI is tax deductible, or whether it has to be added to the cost base or amortised as a borrowing cost over five years. I suspect it can be amortised, but you should get a tax opinion on it.

Regards,

– Steve

• This reply was modified 11 years, 8 months ago by  Steve McKnight.

Yeah… I agree about the visual difficulties.

Seems unnecessary busy despite there being so much white space. That’s an easy fix though.

The bigger issue is the platform change, and that seems to be holding up well.

– Steve

Hi,

Much of what you don’t see is where the changes have been happening as me moved from Drupal and WordPress.

The visual gives us something to work from a lot easier than before, but it is pretty raw.

Ideas for improvement are welcome.

– Steve

• This reply was modified 11 years, 8 months ago by  Steve McKnight.