As I understand it the issue is that if you run into difficulties with the new investment then the property that you have the loan secured over is then subject to being sold by the bank to get it's money back.  So I guess the real danger would be if you used you own PPOR to cross collatorise, if you defaulted on the investment or development then…[Read more]

I'm just using a local surveyor in Victoria for the survey (he will also put the paperwork together for the application to the council), and my wife and I are managing the rest (site works etc.).  I'm not using a 'subdivision company' as such.We are just dividing the block into two and building single story houses.  Starting off as simply as po…[Read more]

hi clint, I'm in a very similar position, although a little further ahead as we have bought the lot and have had a survey completed on it.  I don't have any rules as such that I've noticed, but we have done a fair amount of research and I am expecting the following:land bought for 280K, subdivide into 2 lots (easier for the first time although we…[Read more]

No worries.  I have read both of Ron Forlee's books on property development which I thought were quite good, maybe they would help.Here's how I see it working in an example:Buy house for 200K (sales price).  After 1 year (or any amount of time) the value is now 300K so there has been a capital gain of 100K.  If you divide 100K profit by the ori…[Read more]

Hi WB,I think the answer to your question is simply which one do you want the answer for?  Do you want to measure the performance of the property as an asset or the profit you've made after purchase costs such as deposit and finance etc?I personally would use the formula here http://www.investopedia.com/terms/r/returnoninvestment.asp and use the f…[Read more]

I would personally recommend splitting this problem up into two seperate stages.Firstly focus on collecting the actual costs and informaiton needed for your situation as outlined by the above posts. This is information you will need regardless of whether you use the back of a ciggie packet or purchase software.  Get this down on paper first, yo…[Read more]

A few years ago I took a lease on a commercial building to run my small business.  The building was not currently lease when I took it over and had been empty for some months prior.  In addition it took a while to negotiate mtually acceptable terms of the lease before I signed.I guess I'm just agreeing with luke and saying be careful with v…[Read more]

Thanks Richard,Against the trend I got 97% LVR for the property in the first place, in July this year, so you never know..FYI – This is my PPOR.  Finance with Westpac.  Property purchase price was $280K.  Thommo

Thanks guys – I prob have enough cash to finance the build of one (but not three) unit at 80% LVR after I complete the subdivision so perhaps I can try this:1.  Build one unit and either sell or rent and hope for equity increase2.  From point 1, obtain enough equity/cash to complete the buildI'd prefer not to try to sell off the plan as at the mo…[Read more]

hi fatboy,I'm not going to be super helpful with this one but just thought I'd introduce myself as my wife and I have just bought a block in geelong and are getting it surveyed this week with a view to do a subdivision, which will be our first. Good luck,Thommo