Hi,
My parents will be selling a house shortly, that was their home, but they have since bought another. They will have at least $500K cash when they sell this house, so they would like obviously increase it.
They are not working, so getting bank loans would not be an option.I was thinking they could look for property to sub-divide and build on, seeing as they have the cash. Would this be the best way to make money to increase what they have?
We could also buy places, renovate & sell on, but the fees are so huge i'm not too sure of the best way to do it all.
I have a keen interest in the property market & would be interested in renovating (am about to finish renovating my 2nd place) & helping them however i can.Any advice would be much appreciated!! We are in Adelaide, so anyone who has any contacts would also be helpful!!
Hi. We are in Adelaide also.
If it was me I would look at corner block (or two street frontage, hammerhead) properties that meet the requirements of the local council to cut a courtyard block from. You can do this in either expensive or cheaper areas. I notice people are even doing it in Elizabeth as the north has projected growth. An example of one we were interested in last year was a 60's cream brick house in Kingston Park that had a 1000+ squ. metre block with two street frontages. It sold around the $600,000+ mark. The new owners subdivided off the vacant street frontage of 500 squ. and recently sold it for $450,000 +. The house could have been updated or sold for the same as the land. At the lower end of the scale, a modern 2 bedroom house on a large corner block in Aldinga Beach was on the market for around $250,000 recently. You could have resold the house for possibly $220-230,000 on the smaller block, and also had a courtyard block to sell for about $130-$140. Quite a lot of us are looking for these, but they are around. Obviously tax is payable in the form of capital gains, etc. but you may be able to build up a property portfolio this way. Alternatively, some people prefer to keep them until the prices rise, then subdivide.
Regards,
GThey need to consider various other issues too such as asset protection – it is potentially dangerous to have a lot of assets. They should also consider taxation, centrelink and estate planning issues.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
hi im actually looking for someone to do a joint venture with atm, ive found a property which on the outside looks beutifull but inside its a dump that i could easily turn around with a bit of effort, (im a painter by trade so i plan to do most of the work myself) i plan to fix it up and on sell, but i would rather borrow money from a private investor because we can both get a better deal out of it. depending on what they wanted to do we could arrange a contract where they recieve a return of the profits or a set return after 12 – 24 months or so
Ideally i would like to borrow around $200,000 in cash on the condition that after 12 – 24 months they get their $200,000 back plus interest at at an agreed rate, say 7 – 8% this would just make it so much easier to complete the project and not get tied up with banks.
Alternatively if they agree to fund the project and i do all the work we can split the profits at an agreed ratio once completedif they were interested they can contact me on 0427 705 605 or [email protected]
cheers, Jared Ellison
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