Forum Replies Created
Anybody?????
Thanks Steve, a quick call to the local council revealed that it is an ''unidentifed easement" most likely for access to storm water pipes as these just touch the southeastern corner of the block. So will need an Engineers Report and a Survey Plan to ID who owns the easement…. most likely local council. Councils preferred access to the easement is from a lane way at the back of the block. Which in the event of a subdivision I would have to develop into a bitumen road to the property boundary to access the subdivided block plus pay contributions tfor curbbing and channelling.
Is it usual practice for the developer to pay for the whole of the road upgrade or just significant contributions to its upgrade?
Length would be approx 50m of bitumen road?Appreciate any thoughts.
Thanks
Thanks Rodeo, not sure what easement is for, easement comes up on a property data website but is not mentioned on council property development website so will contact council for a clarification. Just hoping that it wouldn't impact on any subdivision potential or building potential.
Thanks again
Trakka, how do you approach the vendor with your vendor finance option?? Is it something that you just ask the agent whether the vendor would be interested in it?? Do the banks finance based on any standard LVR??
Love hearing about your success.
Cheers
Thanks again Scott, I have asked for a copy of the lease and will get check out some of the finer details and will be sure to check all the points you and Trakker have suggested.
Hopefully the lease checks out in my favour.
Cheers
Thanks Scott No Mates, The space is zoned commercial so would that reduce some of that risk? Tenants in the 6 unit complex are long term with good solid history. Floor space is small at 58m2. There is a small bond in place $1600. Lease is 3 x 3 with renewable option but outgoings are not included.
Does this information raise any further eyebrows and potential questions to consider??
Thanks mate
Thanks guys for your input. Great stuff.
Leased until Oct 2009 at approx 8% yield.
Tenant is a hairdresser in a boutique strata titled complex with Doctors, Physios pharmacy etcWill use your tips to gain further information.
Just wondering how are these properties valued?? What makes up the purchase price??
Thanks agin for your help
Congratulations Kylie.
Nothing like doing it in the real world and achieving success. Would love to emulate your success one day.
Good on ya
Thanks Terry, so those loses made after deductions etc would be then held in the trust and be offset against any capital gain in the future??? So as an example of a strategy then, if you were to rent out your PPOR for lets say an 8% yield and purchase another Property under a trust structure pay market rent and then any loss made after deductions would be held in trust and eventually offset against any capital gain in the future?
When would the purchase of a property that you wanted to live via a discretionary trust be a good idea?
What purpose does this serve for the investor?Thanks Terry and Tammy, I am a little confused. But would the rent that you are paying into the Trust be tax deductible? If so to whom or to what entity would this deduction apply? The trust would run at a loss I guess as loan and rental expenses would be greater that market rent paid by me.
Thanks again
Steve , also sorry to hear about your wife's ill health. Property Investing will and should always take a back seat when personal health and family are involved. Hope all works out for you and yours. Bit harsh I thought to criticise someone on their success. Funny how we tend to think that they (the wealthy or successful) must have done something potentially unscrupulous to achieve their success or rate them low on the credibility stakes until proven otherwise.
Cheers
Thanks for contributing. I have certainly gotten something out of your comments and will take it on board.
Cheers and happy investing
Who then is best to structure loans going forward. My Broker? My Solicitor? My Financial Advisor? Are you proficient in these areas Richard?
Thanks mate
Thanks again Richard, PPOR currently with ANZ LOC. Would you suggest talking with them to discuss as would be 1st IP.
I am keen on a debt reduction strategy asap. I think interest rate MB quoted for Mac Bank LOC was 7.68% in early Dec 2007 but extra costs of doing transactions with Mac bank would increase the costs of doing business. Yes?Cheers
Thanks Richard, is it too much to ask what other lenders you are thinking about to keep loans separate and at a lower interest rate??
Thanks heaps
Very Interesting comments and thank you for your posts. The reason why I posted this question was because my mortgage broker suggested this product as a way of wealth building and debt reduction. I will try to explain below:
LOC 1 on PPOR
LOC 2 using equity from PPOR to fund IP purchases IO.Broker suggested that via Neg Gearing a tax rebate would then be used to help pay down the PPOR over time, therefore increasing your equity in PPOR plus increase overall net worth via additional IP purchases as able.
Over time global limit increase due to growing portfolio CMV.
Does this make sense?? Is there a better way to build net worth and reduce PPOR debt?
Richard and Trent you suggested that there are alternatives to macquarie?? Any examples ??
Thanks again and look forward to your views.
Hi John, just wondering about the 20% deposit? Have you secured that through your money partners?? Further I am considering purchasing an IP to reno, SD off some land and sell both to pay down PPOR. What are some things that you have factored in to your numbers to ascertain whether it is a good deal or not??
Cheers
Saliesh do you guys operate in Ipswich as well??
Tony, mate thanks for your wrap on the seminar. I too get caught up with the intricacies and should "just do it" but I am please that you have gotten something out of it and can recommend it for next time. I am keen to start down the subdivision/development pathway but want to start small so hopefully I can catch the next one early next year I hope.
Good luck mate
Any opinions on whether to fix at 3 or 5 years. Potential for inflationary pressures to be around for some time to come with Aussie mining boom, drought etc and the effects of world economy and volitility in some major old school markets. Any thoughts on this as just looking to refinance myself on PPOR and new IP.
Cheers
