[wilko1Participant@wilko1Join Date: 2010Post Count: 510]

September 19, 2014 - 11:18 pm

Local council should have the details of who owns the property.

Or write down the address and do a title search on the property for the cost of between 11 and 25 dollars.

Usually boarded up houses are government housing as they are usually the only people that board up their houses.

[wilko1Participant@wilko1Join Date: 2010Post Count: 510]

September 19, 2014 - 11:14 pm

Are you borrowing to fund the purchasing or are you using cash/ line of credit etc.

[wilko1Participant@wilko1Join Date: 2010Post Count: 510]

September 16, 2014 - 5:12 pm

So you have gone and got
A) a planning use application
Then
B) applied for building rules consent (usually private certified)
And the c) got granted development approval.
Then it falls on your surveyor and his license that if he pegs the boundary walls (even party walls). He is then certifying they will be built on that exact boundary. Therefore when you build you want to get it SPOT on. As it has already been electronically created on the new titles.

Not every surveyor will do this. Because it is their name on the line in the end. You can have things amended . But you really don’t want to go down that path and it’s expensive. Better for the builder to just get it right. (Otherwise the survey that has already been lodged would be different then the build) ie you don’t want to be out by 100mm.
10-20mm would be ok tolerance or perfection and just build it correctly.

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September 16, 2014 - 10:55 am

Hi ballerina

Once council have granted a land use application (DA). Then it is not their authority to say if community title division will happen before the construction or after the construction.
You can pay all your division fees, water fees, have your water meters connected and the block level clear and pegged and you can get the community divisions through before construction

You can’t say in most cases there is not enough land for subdivision. As I have recently subdivided 6 townhouse on 860 sqm. And also done 2 townhouses on 200sqm (100sqm allotments) it all depends on the development policy and if you can do it.

Some development polices have no density limits, or medium density (150sqm) or high density limits.

[wilko1Participant@wilko1Join Date: 2010Post Count: 510]

September 16, 2014 - 12:50 am

– do the land division first into 6 blocks of land.
– increase the equity in the deal.
– if the houses are stand alone, split building contract into 6 contracts one for each property.
– should be able to do resi lending (after titles are issued)

Cons are that it takes a additional 6 months or so whilst you wait for your land division to go through.

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September 12, 2014 - 3:32 pm

Walk away I would do. You have no money lost in the deal and have a get out card. I would just take it and move on. It’s often about the deals you don’t buy that make a successful property investor. I would think that it would
Be to much stress to nut out a deal for a deal where you have lost no cash/money at all in.
If you had a non refundable deposit ect then looking for alternatives is what u have to do but you don’t.

[wilko1Participant@wilko1Join Date: 2010Post Count: 510]

September 12, 2014 - 6:04 am

Use a website called SA council maps. It will give you the policy code that your house is situated it.
Use the onkapringa development plan available online to look up that specific policy code.
Read about the individual requirements for the policy area. Your property May or may not be able to be subdivided. You’ll be looking at hammerhead allotment sizes if you have 2 neighboring properties. Also keeping the house and subdividing might be a lot harder if you are not on a corner allotment or have dual street frontages.

Unfortunately a desire to subdivide might not line up with a ability to do it.

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September 10, 2014 - 3:25 pm

Get your supervisors license for residential construction in the future and for your 2nd house. Start researching properties that can be subdivided.
Schedule a meeting with a local planner in the area and ask them how to read and understand the local development policies, development guidelines. This will help you find areas which development is encouraged. Google maps can also help. If you see a lot of houses, with 2 houses behind a old house or subdivided corner allotments. This can also indicate you could do something similar.

Or continue as you are doing but buy properties that are significantly undervalued and need renovation.
You can add equity from your own labour and having a trade in one of the important 3 trades (electrical plumbing and carpentry) you should be able to save significant costs. Also if you have mates that have other trades. Get then to teach you their trade. Learn plumbing from plumber etc.

[wilko1Participant@wilko1Join Date: 2010Post Count: 510]

September 10, 2014 - 12:17 am

That you should always buy near Sydney harbor.
Hindsight….

[wilko1Participant@wilko1Join Date: 2010Post Count: 510]

September 10, 2014 - 12:15 am

– are you working out of home/ rental. Claim office expenses, car expenses all that jazz.
– trust should be setup so it owns shares in the company. If you currently earns 250-350k on individual tax. You are paying to much.
If you anticipate earning regular that amount 250k-350k. Might be better to structure it so
Once you set up the trust owns shares in the company and well as your company owning some shares / so your can rollover profits back into the business. 180k ish should be your distribution from discretionary trust to personal every tax year. Or less really depends on how much money you need per year to live.

And if you do have a wife, speak to a capable financial accountant. (This means someone who is going to charge you after the first initial meeting for advice or even the first meeting: if they cost , usually a indication the advice is worth it)

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September 9, 2014 - 11:59 pm

No offense to everyone’s books/seminars and courses. Which make up a portion of the learning pie.
My fastest learning was when I physically got to speak to people with a number of properties – 4/5 minimum. And speak to people who have 20 properties and 100 (unlikely to find someone who will give you the time of day)
You’ll learn basics of people with small portfolios.

30 properties at 30. I’m guessing your 18-20 now?

– how active do you want to be. Do you want to be buying renovating selling then moving profits into developing.
– what are you current skills background. Qualifications in anything to do with housing construction would help with the above or are you a professional, are you going to uni to be a doctor . This is important because it shows you what to focus on first.
– build a disposal income first as quick as you can. When you have a large income it makes a heck of difference on accelerating and deposits for properties.
—- Save quickly for that first deposit and hard.

Need to work out where you sit and what you are prepared to do before you can work out how to achieve it.
30 at 30 is to high a goal btw. It’s a nice long term goal. But a shorter goal would be. How am I going to buy a property in the next 6 months. Or the next year. And work your hardest to achieve that

• This reply was modified 9 years, 7 months ago by  wilko1.
• This reply was modified 9 years, 7 months ago by  wilko1.

[wilko1Participant@wilko1Join Date: 2010Post Count: 510]

September 9, 2014 - 11:47 pm

As a beginner property with a bit of upside. I’d look for properties that you could dual occupancy in the future.

So that means look at large bedroom places 4 bed etc
Maybe dual driveways.
Dual side Carports (or room for them)
Combined larger houses. (House that was previous semidetached) and someone connected it and then you could separate it again later.
Double toilets perhaps.

Or something that is rentable to students.
Close to transport links that connect to major uni’s etc.

Where you could have 2 students live with you paying X per week to minimise your holding costs. And often on a per room basis the yield is higher then say as renting whole house basis.
Being 1st property could help the cashflow a lot especially with low income.

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September 9, 2014 - 11:39 pm

Ps your sentences are confusing because you go from past tense, as in your completed it. Into future tense stating what you are going to do.

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September 9, 2014 - 11:37 pm

Jimbo

Your trust bought the land.
When you built the units. Did the units end up back in underneath the trust?
they should of: as a discretionary trust could then give a payment to yourself as a individual. Which is wise to do up to 180k. (The point in which company tax becomes a better avenue for paying tax)
You could of missed out on tens of thousands of savings there.

How long ago was the development.

[wilko1Participant@wilko1Join Date: 2010Post Count: 510]

September 9, 2014 - 6:30 pm

Thanks ballerina, that’s pretty much what I thought for already approved DAs. Now hopefully the pending DAs are just as easy.

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September 9, 2014 - 5:09 pm

Depends on your own individual tax position and also the property that you purchase. If subsequently the margin scheme can apply to your development.

If so generically

If you have a end sales value of 2 million. Your max gst could be as high as 200k
Applying the margin scheme. You pay roughly 10 percent of the difference between purchase price, development and build costs. And then the sale price. Ie bought 500k land, built 1 million. Make 500k profit pay 10 percent of that 50k split over the 4 houses 12.5k gst per house.

Then after you pay gst you pay based off your own individual tax rate. Which is variable.

And if property held in a company then your flat 29-30 percent.

Sometimes better to split sales over 2 financial years if your only development. Or a period where one partner might not be working as much. To take advantage of that years Lower income.
And or retaining the equity in one property and keep as rental.

The above is pretty basic. Speak to a accountant. With semi accurate development costs land costs and sales costs. To work your liabilities

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August 7, 2014 - 12:37 am

Firstly. If your broker has less properties then you. Or rents, stop listening to your broker.
IMO a broker who doesn’t invest themselves. Is a sales rep.

Cash and equity wise you have enough to buy several properties. The question is what type of properties do you wish to buy. Ie would you buy a new unit. Yes Low maintenance etc but once you have bought 2 newish units. You have to wait for lady lucky market growth or save more money to be able to buy more.

Perhaps look Into purchasing. Fixing up: renovating, subdividing land and building. To create additional equity so that you can reuse the same capital again and again and again.
Aim for lower- medium value properties where the yields/ rents are usually higher in proportion to the value of the property.

• This reply was modified 9 years, 8 months ago by  wilko1.

[wilko1Participant@wilko1Join Date: 2010Post Count: 510]

August 7, 2014 - 12:29 am

If you obtain 1 presale for a home for say the end sale price 400-500k for one of the homes. Some banks will consider funding it. As it should be residential/ investment type lending up to 80% LVR and including rental income from the properties in the servicing.
Also technically your 1.1 million is producing a income a high interest account of 4percent would at least put you on 45k a year.

You should be fine getting finance.

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July 14, 2014 - 5:00 pm

First 2 years are the hardest.
I would recommend that if you have friends or family that work in business if you can be employed on a on off type arrangement. where you work fulltime hours whilst at work and then when you are renovating you have time off or say you cannot work for 4 weeks. I say friends and family because not many normal employers would be able to cope with it.

Another way is to work odd hours at a job. Ie a 5pm – 2am type job.

Or you could get a partner/ another director who comes In for a percentage of profit after costs. They supply the serviceability and you provide the work and have say $1k a week for 40 hours of your time as a expense.

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July 14, 2014 - 2:54 pm

If you are going to be subcontracting back to the builder and Doing the majority of your work for him. Could be seen as sham contracting.

You also have to look at things like job security. As a subby, if things cool down and there is no work you have no income, a full-time job means you do have a level of stability.

Also getting 37 as full time and then 47 as a subcontractor you’ll still be behind. On average the required amount over salary to ensure you pay for licences, insurance, super, annual leave and sick leave that you lose from your job equals 1.75 higher then your pay. You need to be contracting at 1.75 higher then your base rate per hour to be at the same level as your pay. Ie 37 x 1.75 = 65 a hour.

Pluses for going subcontractor.

You can start off as yourself and then perhaps you yourself might chose to hire people labourers and apprentices underneath yourself. Build up a gang of carpenters so you can tender for bigger roles and projects whilst slowly getting off the tools yourself.

so there is a advantage to expand your business.