Forum Replies Created
That is a pretty strange idea.
if you were really bent on getting a tax return. Why not just have you sister rent the property off you directly whilst you still live somewhere else. And then your sister invited you over for dinner. And you fall asleep. Every night. In a room that had all your bed and clothes in it.
Good choice to start young. Like any pro in any field when you ask master violinist when they started playing. they respond with 2 years old.
Your choices I see which you should structure your school courses and potential uni courses should
revolve around one of 3 things to be successful in property development.
1) you can work on being the money. The person with the money that puts it in to
get into deals. This means starting to save now. Getting a after school job and perhaps putting a focus more on a part time or casual job then on playing as many sports. Now I'm not saying sports are not important at school. But unless your a top level or chance to make it athlete. Sports end up a social thing
later in life and not a means of financial freedom.
2) work on being the builder, property development/ construction involves building or will at some stage. Becoming a builder / businessman. Enables the people with the money to then work with you in joint ventures. As you have the skills of construction and they have the money.
3) work in a field relevant. Ie town planning (the most useful degree for spotting real estate opportunities that will make money) and develop your career into a business. Which you can then use the money to fund relevant property development ventures.
As a first step though I would work on money. Saving a large deposit will give choices when you turn 18.
Yeh its a tough one when you get hit by a big water bill.
I bought these timer sprinklers to water the lawn at a rental property and just set them to 4am and 10pm.
3 months later i get a bill for $1400. I was like whattttt is going on here. Turns out the stock time on the sprinklers was 2 hours. 4 hours of non stop water usage per day for 3 months.
Didn't your agent advise you to include water costs to the tenant? Just have to wait before you can forward all costs to them. Some agreements have a built in limit that over a certain KL usage Tennant pays for it.
Not separate titles, so only one rate notice. For example someone could own a block of 4 units on one title but they would only get charged rates on the value of them. Usually water charges are slightly higher as well ie one house might be 1k per year whilst 4 units would be 1.5k a year. which is why they havent previously subdivided them because the holding costs would have increased to 4k for water and higher again for council rates.
I think you should ask council that you want to pay for another bin because you have lots of rubbish
Not separate titles, so only one rate notice. For example someone could own a block of 4 units on one title but they would only get charged rates on the value of them. Usually water charges are slightly higher as well ie one house might be 1k per year whilst 4 units would be 1.5k a year. which is why they havent previously subdivided them because the holding costs would have increased to 4k for water and higher again for council rates.
I think you should ask council that you want to pay for another bin because you have lots of rubbish
Make sure you don't go signing another management agreement before you have the first one cancelled. Unless you ticked open agency. (Not single agency) so reserved the right to have multiple agents looking for tenants.
Lets be honest though. There's not a real lot a credibility to lose as a buyer. A agent doesn't care if your a man, woman or tomato. They still get a commission if a tomato buys the house ( more interested in sellers anyway, who Pay their commission). How often do you purchase property, say a active investor maybe up to 5 properties a year that's pretty active. And of that unless your in some all country town the listing agents are all going to be different. Or 9 times out 10. Are you really going to lose credibility if
you happen to try buy off the same agent again. They still legally have to submit all offers to the vendor.
I would and have just put out offers with just normal conditions regularly and I have said to agents before. After they have had my offer for 2 weeks (clearly searching and playing my offer on other people for a higher offer) and they have come back and said oh we will accept that offer. (Reliesed it was a good
offer now, vendor getting nervous at losing the fish)
You just say (if you bought elsewhere or you don't want the property). I'm sorry but you took 2 weeks to get back to me that offer isn't valid anymore. I've purchased elsewhere.
its only a offer, not a contract. Don't be filling in and signing to many contracts. That would lend itself into a pickle.
Otherwise if all the agents are making you go straight to contract ( as some real estate agency's do) just include
""subject to purchaser having a 7 day due diligence period, if for any reason the results of this due diligence are not satisfactory to the purchaser. The purchaser reserves the right to withdraw from the contract via written notice to the agent within and up to the 7 day period for a total refund of all deposit monies paid"
Can also extend this to 10 business days if you can get away with it. That gives 2-3 weeks depending what day you buy. But most vendors are happy with a week. If you pull
out it's only a week lost in the selling campaign
You have to think about NRAS in numbers if you want to gain the real benefits. Not as a individual purchasing a PRODUCT.
Heres a situation. Most if not all states have a affordable housing community. Organisations set up to help people get into housing.
Now the minimum that NRAS like to see in a application for the grants is 20 homes and more points for over 100 homes.
most of these affordable housing organizations do not build themselves. Developers might be building a group of 8 homes another guy might be building 4 townhouses someone else 6 units etc etc in different Areas. They could each independently approached the affordable homes company. Who applies for incentives on behalf of the 4-5, 10 however many people
Now if you can build a development say of 5-6 homes off a single block of land that is cashflow neutral or even slightly cashflow negative. Can you imagine now what happens if you could get 3,4,5, incentives for those houses. Suddenly your positive net cashflow per year tax free is 20k,30k40k,50k.
You don’t need to a millionaire to have a passive portfolio of 50k easily.It’s all made for the major home builders, developers, private overseas owners all of australia
Think Bigger. In saying that I have a friend in adelaide who has purchased a overpriced house on NRAS 3 bed 3 bath 2 carport. And it will still net him 7-8k a year. The bank valuation came in on price. So it’s not all bad and there are certainly people that will abuse it as well.
I would take the long term rental with lower yield over the holiday rental. Going to be much easier for the banks to finance against that type of income vs transient Holiday rental unless you had a couple years of "total holiday income" under your belt ie You could show for 2 years that it earnt 20k in one year and 22 k in the next and they could take the average. Going to be quicker just going the long term lease.
Do not try to do it as a "hammerhead" allotment. Instead try to do it as a group dwelling where each dwelling has common property "the driveway" and you have your garage/carpark for the 1st house at the rear of the first house.
alternatively you could try and get approval for a cross over at the front of the 1st house for your 2nd non enclosed carpark (i assumed the house was a 3 br house) and then once that is a approved submit plans for the 2nd rear dwelling. If you want to PM the address of the property i can have a look and see if you do have options or not.
Btw just for future reference, even if the agent was your Mum, don't believe them. Do your own due diligence.
Cant go past a few letter box drops either.
Just sign up with a local real estate agent that somebody can give a reference to in the local area.
Not every agent is bad and out to try and rip you off.
Just sell the property.
1.2 mil extra and i get those Bars to prevent burglaries and trap me inside in case it burns down.
I cannot believe those are actual prices.
Is one in EURO's and the other in US at the very least ?
Property development -Building multiple houses on sites.
Renovations on very high end properties
Renovations on Unit blocks in high value suburbs
Building Commercial buildings
Can make that type of money easily in a year.
Pricewise stone is at least 5 times more costly. Plus install is harder. Laminates are held in with screw clips and can be easily cut to size and shape. Replacing a laminate benchtop if you needed to sell will be cheaper the stone.
The ceramic ceasar stone is still fairly pricey but is coming down in price.
it really should be based upon the age, type and value of the property.
A million dollar house. The stone benchtop is required, a 200k unit, laminate should be fine
Well if your a licensed builder you should still be able to get finance up to 70 %.
and 60% at the lowest LVR if you were not.
Yes it is a lot easier to finance if you have a builder, building it.
If you say pets allowed at your rentals – don't install carpet. Not worth the money.
Barkchips – for gardens, unless you renter is a avid gardener. Barkchips. as much as you can.
Work out
– timeframes
– interest costs whilst not available for rent
– if you could service a construction loan of 700k for the build.
– If you have the money for the build or Reno.
50k for plans and demo costs is also excessive. For 2 dwellings. I'm not going to kid but that money could get approval for 40 dwellings. If all relatively the same. Which your design would be a mirror of one another. Unless these are some very detailed drawings and high end high spec builds. I would look to hire the services independtly of paying a single company/ builder.
Well at least you know what you have to do now
How much is your original house going to be worth with a 70-100k Reno. If it's not worth at least 100k plus more…. Don't do it. Common sense your not making money.
and figure out the end sale price of whatever dwelling you are putting on there. But a 4 bed 2 bath wouldn't be out of the question which is what I would expect for a build costing 330k each
