Hi Nathan,

We have access to APM reports which is quite similar – I have emailed you the property report.

Regards

Shahin

34% in 5 years is pretty decent growth. Start hunting in that area first. It also sounds like you know the area. Fairfield is a great area – I have an investor buy an older style unit and he converted it to an amazing french provincial inspired unit. He made a healthy profit once he sold he after about 2 years.

What type of rent are you about to…[Read more]

I wasn't suggesting getting the home builder to design – I was suggesting to use the existing home builder designs than getting a custom one done up. Also when you say a single storey townhouse – how many sqm are you talking about?

It depends on the size of the dwelling (i.e. the larger the dwelling, potentially the lower the per sqm charge). Wincrest charged me $1,300 per sqm. I have 1 flat site and 2 'problematic' sites. 

Hi Colin,

I had a buyer purchase a brick house close to the station at MD for $312,000. The block was about 500sqm. The rental return is $360 per week. 

Regards

Shahin

Hi Coota,

Start local for your first IP. Attend as many open houses and auctions as possible. Get an idea of trends, demographics, rental demands and price guides. With your budget you should be able to either buy a house close to the city (say Hawthorn) or travel a little out and buy a house. I personally would prefer the latter. Concurrently,…[Read more]

There is nothing wrong with using a buyer's agents. The only thing is that the cost is unfortunately not tax deductible. What's your purchase budget? 

Regards

Shahin

Again I wouldnt suggest using an architect for this type of a project but if you are going to use one regardless have you considered a good draftsperson instead of an architect?

Regards

Shahin

I deal with Wincrest homes. They have built on 3 sites for me. I have an investor currently building townhouses with Metricon. Very few will build off client's plans (Wincrest is one of them).  

You so need to go with a project builder. Building a house behind an existing house isn't complex for the display home builders. 

I can assure you that any builder building a custom home will charge you plenty more than a project home design (obviously from the project builder himself/herself).

1. Settlement
2. Settlement
3. Not that easy. You either need to get the vendor to agree to the change or get your solicitor to organise a stat dec for the transfer of entities. I went through something similar last week and its an absolute pain. The purchasor was also whacked with a $7k bill from his solicitor for the 'extra work'.
4. Depends but…[Read more]

I think Derek is on the money re his comment about Granville's proximity to the City and the ripple effect. The only problem with Granville in the past has been its crime rate. That's changing now but there is a far way to go. Its also a major station and as pointed out before very close to Parramatta. There is still a lot of not only investors…[Read more]

Hi Hadoman,

Just a few things to hopefully get you started. I have worked on a few applications whereby the investor has a property of say $350k. They spend $80k for a GF. Therefore you imagine that the property would be worth $430k. However when the lender's valuer values the property it often comes a little less say $400k. So do not assume that…[Read more]

Great minds type at the same time!

What I was getting at specifically was that I bought a property with DA to build 2 houses (in an area where it is close to impossible getting DA's) and they were custom houses. I found that builders charge much more for custom designed houses than 'project homes'. 

When I did a development on another site – we…[Read more]

Hi There,

You normally engage an architect if the end product is going to be high standard. 

I did a development in Sydney's west (we had to work with smaller resale value) and hence we engaged a builder that did everything for us. It was much cheaper than engaging an architect. 

Is there a specific reason you are engaging the architect before…[Read more]

Also try Trustee sales – you can grab yourself a bargain there but its tough to get one in the Sydney market.

Regards

Shahin

Ok so your LVR on your new property is going to around 88% assuming that the value of your current PPOR is $350k. How have you determined this amount? Have you recently done a valuation or are you estimating?

Regards

Shahin

There are some bargains in the berala area. Lot of investor and FHB activity in the area due to the low entry point and high rental demand.

Hi Leyashyash,

The longer you can stay in the smaller mortgaged property the better. Higher IP mortgage means higher negative gearing benefits. Are you taking the equity from your PPOR to fund for the new IP purchase? Are you going to 80% LVR ot 90% LVR?

Regards

Shahin

The benefit of purchasing a PPOR is that you stop paying someone else's mortgage and it gives you chance to renovate the property which in turn will create equity for you to purchase subsequent IP's.

The benefit of an IP over PPOR first is the negative gearing benefits.  There are a lot of unknowns with your situation but one common scenario is…[Read more]