Just after advise on what you would do

[westminster]

Hey guys just had a look at title don't now why I thought 860 block it's 845 sorry for that

Ok then I doubt you'd get permission to squeeze in that 4th villas as I'd hoped.

Back to triplex then

If you want to stretch the envelope a little then...... you could put in a triplex PLUS a single person dwelling (not a granny flat but similar). A single person dwelling lot size is allowed to be 50% of a normal lot, so for R40 this would be 110 sqm (half of 220sqm).

845 minus 110 still leaves 745sqm which is enough for 3bed/2bath/double garage villas.

It's an out there concept but could be a little opportunity to increase yield and profit.

 

[jacko18]

Ok then I doubt you'd get permission to squeeze in that 4th villas as I'd hoped.

Back to triplex then

If you want to stretch the envelope a little then...... you could put in a triplex PLUS a single person dwelling (not a granny flat but similar). A single person dwelling lot size is allowed to be 50% of a normal lot, so for R40 this would be 110 sqm (half of 220sqm).

845 minus 110 still leaves 745sqm which is enough for 3bed/2bath/double garage villas.

It's an out there concept but could be a little opportunity to increase yield and profit.

Those words disappoint would love to fit 4 would Ive tried to sell 2 keep. 2 yeah could be a Idear as long as it look the same or nice with the lot of villas so you won't get permission 4 you wouldn't think

 

[jacko18]

Thanks for advice people if there is anybody though that could talk bit more about stratedgy

what direction I should take would much appreciated

just I have things like shouldn't I aquire 3 to 4 more investment in next 2 years while on this money but how can I keep them and keep growing my portfolio after 2 years by adding dual incomes to the residents to turn into positive that's only way I can think but there would be others sorry if I ask to many quiestions it's just that I'm just keen to figure it out

 

[MTR]

Thanks for advice people if there is anybody though that could talk bit more about stratedgy

what direction I should take would much appreciated

just I have things like shouldn't I aquire 3 to 4 more investment in next 2 years while on this money but how can I keep them and keep growing my portfolio after 2 years by adding dual incomes to the residents to turn into positive that's only way I can think but there would be others sorry if I ask to many quiestions it's just that I'm just keen to figure it out

There are many ways to move forward but it will depend on funds and what you are comfortable doing at this point in time. Sometimes you have to crawl before you walk.

One option would be to develop your property in Spearwood, if you have the funds to do this. If you were to build 3 you have increased your property portfolio and they will be cash flow positive. You will also then be able to access equity on completion of the builds and continue purchasing property. You would need 20% deposit on the total build, for arguments sake that is around $120,000 and holding fees/buffer so at least $160,000.

Alternatively, great land bank opportunity and develop when it suits, you have done very well with this Spearwood property, buying at the right price. Good for you.

Another option if you are chasing growth is follow cycles at the moment Sydney property market is rising, low entry level in West Syd, you can purchase units at $220,000 renting for $300 pw, ie St Marys, Mt Druitt.
Alternatively buy something in your own back yard that needs reno, buy as cheap as possible and hopefully rents will almost cover the mortgage.

Of course do your own DD, am sure plenty experienced investors can come up with many other ways moving forward

MTR

 

[jacko18]

There are many ways to move forward but it will depend on funds and what you are comfortable doing at this point in time. Sometimes you have to crawl before you walk.

One option would be to develop your property in Spearwood, if you have the funds to do this. If you were to build 3 you have increased your property portfolio and they will be cash flow positive. You will also then be able to access equity on completion of the builds and continue purchasing property. You would need 20% deposit on the total build, for arguments sake that is around $120,000 and holding fees/buffer so at least $160,000.

Alternatively, great land bank opportunity and develop when it suits, you have done very well with this Spearwood property, buying at the right price. Good for you.

Another option if you are chasing growth is follow cycles at the moment Sydney property market is rising, low entry level in West Syd, you can purchase units at $220,000 renting for $300 pw, ie St Marys, Mt Druitt.
Alternatively buy something in your own back yard that needs reno, buy as cheap as possible and hopefully rents will almost cover the mortgage.

Of course do your own DD, am sure plenty experienced investors can come up with many other ways moving forward, these are some ideas that may be helpful.

MTR

Thanks heaps for that yeah that's what I'm after just different stratedgies obviously have the end goal of devoloping spearwood so what your saing is I would need 160 k to do project but that is also back in pocket when sell

Is that the only way by having 20 % say if you have other property can. U use equity for the 20 % I'm just thinking if that's the case better of investing in right areas growth and would have maybe that of equity in. 2 years of a couple to then do devolopment do you now much about Brisbane market do you think will take off

 

[HD_ACE]

At the end of the day your going to want to purchase as much as you can while your on the high income. But also you dont wont to have to be stuck fifo just to be able to hold the properties which are supposed to set you free.

This is where development comes into play. You can develop the site in order to turn it positive so your not paying to hold it and let the magic of time and compounding growth work its magic. And then its x3 lots of growth.

You really need to set out an overall plan and strategy in order to exit.
You may find that its going to be alot easier to purchase and then develop while you on the high income rather than land bank, leave fifo and strugle to hold and develop.

If you develop first you can use the equity to purchase again while saving your pennies for a ppor. Or you can land bank a few and let growth continue to fund the development.

You really have to work out the time line and no of properties and developments needed for you to say thats enough.

Your in a very similar if not the same boat as me and i have done exactly what i have said above in order to get ahead to reach my overall goal.

Hope this helps

Cheers

 

[jacko18]

Thanks heaps for that yeah that's what I'm after just different stratedgies obviously have the end goal of devoloping spearwood so what your saing is I would need 160 k to do project but that is also back in pocket when sell

Is that the only way by having 20 % say if you have other property can. U use equity for the 20 % I'm just thinking if that's the case better of investing in right areas growth and would have maybe that of equity in. 2 years of a couple to then do devolopment do you now much about Brisbane market do you think will take off

After making some nice money and being able to devolop in future and it's only just been 2 years so really happy with spearwood

it's sought of gets me keen on these style of investment only thing I worry with them unless you add something they are a far bit more negative

but with the growth I've had can't complain just like to keep doing it but yeah like you guys know don't like the fifo and like me golf

might just have to diversify with mix of positive do you think a lot of people would for example get unit in west sydney lock interest in for 5 years then you have 5 years of paying nothing looking after itself except for maitenance issues

at liest then you have 5 years of growth with positive or neutral gearing

 

[jacko18]

At the end of the day your going to want to purchase as much as you can while your on the high income. But also you dont wont to have to be stuck fifo just to be able to hold the properties which are supposed to set you free.

This is where development comes into play. You can develop the site in order to turn it positive so your not paying to hold it and let the magic of time and compounding growth work its magic. And then its x3 lots of growth.

You really need to set out an overall plan and strategy in order to exit.
You may find that its going to be alot easier to purchase and then develop while you on the high income rather than land bank, leave fifo and strugle to hold and develop.

If you develop first you can use the equity to purchase again while saving your pennies for a ppor. Or you can land bank a few and let growth continue to fund the development.

You really have to work out the time line and no of properties and developments needed for you to say thats enough.

Your in a very similar if not the same boat as me and i have done exactly what i have said above in order to get ahead to reach my overall goal.

Hope this helps

Cheers

Okay buddy you get any help to figure all out you did it yourself
I stress on this stuff just love a mentor or wish one my family members had been investors look I love researching suburbs the different stratedgies you can do most thing about property I just hate the financial side of it I'm not good at working it all out

 

[jacko18]

I don't get this say if I use equity out of spearwood to purchase there would be enough for 2 deposits what happens when I devolop spearwood and I used the equity bit the place is getting ripped down can you explain I don't get what you can do

 

[sanj]

I don't get this say if I use equity out of spearwood to purchase there would be enough for 2 deposits what happens when I devolop spearwood and I used the equity bit the place is getting ripped down can you explain I don't get what you can do

you dont have enough equity to develop spearwood AND buy another 2 places.

Personally i think you should develop it, make some money/equity and then move on. It is something that can be done easily by appointing an all in 1 builder and managed by you during your weeks in perth.

dont try to do all things at once, youve got a pretty good opportunity sitting in your lap with a development site in strong demand, high income, good amount of equity and a market crying out for the product you can develop. why ignore all of this?

First things first, make an appointment with a couple of these all 1 one companies, inspired, ventura, dale alcock developments etc. all of thm will have some sort of initial free consultation/feasibility. use those meetings to ask all the questions you can think of and come out with a better understanding of the situation.

Currently you are all over the place and dont know what to do next, you need to be able to make an informed decision which these appointments will help with.

 

[MTR]

Sanj is one smart cookie and hit the nail on the head.


I just want to run through the numbers, and obviously I may be out a little, however I think I am pretty close.


Current Loan Spearwood
$392,000 (80% cost - $490,000)


Approx Building Cost turnkey - three (3x2 units) (reasonable good spec)
$600,000 (loan required $120,000 + interest/buffer $40,000)

Total cost to build/land $1,104,700



End sale value @ $475,000 each $1,425,000 I think this is close to 30% profit

Profit/equity $320,300 (don't sell access 80% equity)
TOTAL TO PLAY WITH $256,240 - on completion go buy your next development site and repeat or buy cash flow properties


These units/rent for $500 each - $78,000 gross (deduct pm fees, insurance, rates/taxes), very healthy return. Depreciation will be around $7000 per unit/villa... nice

Total interest on loan 5.2% - $57,444

BTW you do not pay any consulting fees if you go through the major Spec Builders, ie Ventura etc.
Another option if you are really concerned is use a building broker he will put it together for you.

$475,000 per unit I think is conservative probably a little more depending on specifications.

The more I look at this the more I like, hope I have not left anything out

 

[jacko18]

Sanj is one smart cookie and hit the nail on the head.


I just want to run through the numbers, and obviously I may be out a little, however I think I am pretty close.


Current Loan Spearwood
$392,000 (80% cost - $490,000)


Approx Building Cost turnkey - three (3x2 units) (reasonable good spec)
$600,000 (loan required $120,000 + interest/buffer $40,000)

Total cost to build/land $1,104,700



End value @ $475,000 each $1,425,000 I think this is close to 30% profit

Profit/equity $320,300 (don't sell access 80% equity)

TOTAL TO PLAY WITH $256,240 - on completion go buy your next development site and repeat or buy cash flow properties


These units/rent for $500 each - $78,000 gross (deduct pm fees, insurance, rates/taxes)

Total interest on loan 5.2% - $57,444

BTW you do not pay any consulting fees if you go through the major Spec Builders, ie Ventura etc.
Another option if you are really concerned is use a building broker he will put it together for you.

$475,000 per unit I think is conservative probably a little more depending on specifications.

The more I look at this the more I like, hope I have not left anything out

So the 160 deposit that needs to be cash I need save or I can use equity in spearwood and cash maybe have to save bit more aswell is this correct I'm getting confused on if you can use equity and the demolish sorry guys

 

[MTR]

Yes, you get the property re valued and use the equity, however you want to make sure you have enough to proceed, as this is where some developers come unstuck.

Also check SS if you do not have a good broker as this will help a great deal, I use Aaron C

 

[HD_ACE]

Okay buddy you get any help to figure all out you did it yourself
I stress on this stuff just love a mentor or wish one my family members had been investors look I love researching suburbs the different stratedgies you can do most thing about property I just hate the financial side of it I'm not good at working it all out

Nah mate so far ive had lots of help from lots of people. Using the knowledge of smarter and more experienced people than yourself is the key.

I garantee you will learn most from this site alone its a good place with lots of helpfull knowledgable and smart people. Hang around and youll go far.

Also sounds like you need a good broker to run the numbers and put your mind at ease. Plenty on here or pm me for a perth based one.

Cheers

 

[jacko18]

Yes, you get the property re valued and use the equity, however you want to make sure you have enough to proceed, as this is where some developers come unstuck.

Also check SS if you do not have a good broker as this will help a great deal, I use Aaron C

Rodger mate

basically if I don't have enough save for a few months

I'm going to devolop the property only thing is in 3 weeks go to Europe for 6 weeks

I had to quity job it was my patner dream to go so I have to put my goals away for a bit do this for her

unfortunately I won't be on the sort money were they will lend until a few months after I start my job so it could be until after Christmas or even feb before I can do it

that's why I got keen with a little window of being able to purchase in next 6 weeks before they won't lend to me for a while but you guys have opened my eyes

thanks so much I don't now my stratedgy for my situation but definelty can see how this devolopment will set up the rest of my portfolio bring on financial golf freedom

 

[MTR]

Rodger mate

basically if I don't have enough save for a few months

I'm going to devolop the property only thing is in 3 weeks go to Europe for 6 weeks

I had to quity job it was my patner dream to go so I have to put my goals away for a bit do this for her

unfortunately I won't be on the sort money were they will lend until a few months after I start my job so it could be until after Christmas or even feb before I can do it

that's why I got keen with a little window of being able to purchase in next 6 weeks before they won't lend to me for a while but you guys have opened my eyes

thanks so much I don't now my stratedgy for my situation but definelty can see how this devolopment will set up the rest of my portfolio bring on financial golf freedom

What can I say.... you have your priorities right, partner first

All the best

 

[jacko18]

if you buy another place chances are you wont have enough money to develop spearwood for a while. if i were you id take advantage of the demand for villas at the moment and develop this.

is it possible to retain the house and put 2 behind it?

With what you said with retaining dont think so house is more back half in middle block and that would of been apart of selling point of it and would of been told from buyers agent don't think so mate

 

[jacko18]

Sanj is one smart cookie and hit the nail on the head.


I just want to run through the numbers, and obviously I may be out a little, however I think I am pretty close.


Current Loan Spearwood
$392,000 (80% cost - $490,000)


Approx Building Cost turnkey - three (3x2 units) (reasonable good spec)
$600,000 (loan required $120,000 + interest/buffer $40,000)

Total cost to build/land $1,104,700



End sale value @ $475,000 each $1,425,000 I think this is close to 30% profit

Profit/equity $320,300 (don't sell access 80% equity)
TOTAL TO PLAY WITH $256,240 - on completion go buy your next development site and repeat or buy cash flow properties


These units/rent for $500 each - $78,000 gross (deduct pm fees, insurance, rates/taxes), very healthy return. Depreciation will be around $7000 per unit/villa... nice

Total interest on loan 5.2% - $57,444

BTW you do not pay any consulting fees if you go through the major Spec Builders, ie Ventura etc.
Another option if you are really concerned is use a building broker he will put it together for you.

$475,000 per unit I think is conservative probably a little more depending on specifications.

The more I look at this the more I like, hope I have not left anything out

Would that mean if I decided to keep the triplex my self that I would be 20000 positively geared taking away pm fees and that of course

 

[jacko18]

Sanj is one smart cookie and hit the nail on the head.


I just want to run through the numbers, and obviously I may be out a little, however I think I am pretty close.


Current Loan Spearwood
$392,000 (80% cost - $490,000)


Approx Building Cost turnkey - three (3x2 units) (reasonable good spec)
$600,000 (loan required $120,000 + interest/buffer $40,000)

Total cost to build/land $1,104,700



End sale value @ $475,000 each $1,425,000 I think this is close to 30% profit

Profit/equity $320,300 (don't sell access 80% equity)
TOTAL TO PLAY WITH $256,240 - on completion go buy your next development site and repeat or buy cash flow properties


These units/rent for $500 each - $78,000 gross (deduct pm fees, insurance, rates/taxes), very healthy return. Depreciation will be around $7000 per unit/villa... nice

Total interest on loan 5.2% - $57,444

BTW you do not pay any consulting fees if you go through the major Spec Builders, ie Ventura etc.
Another option if you are really concerned is use a building broker he will put it together for you.

$475,000 per unit I think is conservative probably a little more depending on specifications.

The more I look at this the more I like, hope I have not left anything out

Sorry aswell with the 250 equity I would have if I went with sell 2 keep 1 what sort of profit would you make if you developed again just like a understanding on what you would make if it was stratedgy and would you be able to keep one unit or villa each devolopment is that usually what people are looking to make

 

[MTR]

Would that mean if I decided to keep the triplex my self that I would be 20000 positively geared taking away pm fees and that of course

Roughly speaking $5000-8000 deductions so about $12,000 cash flow positive income, not too shabby and you have accumulated 3 properties. Repeat this and you start creating an income stream, sell 2 keep one and income will be greater.