Invest in US

You need to commit to the process
Buying 1 cf+ over there will not be enough to change your life. Accumulation will change your life.
Yield > 20% is very common if you know what kind of property you are looking for
Australian tax resident can claim tax credit for tax paid in the other country under double tax agreement, but with broad tax country like US, we can quarantine the income in US and only pay us tax rate.
You can have several LLC under 50k income, and always pay 15% tax only.
Capital gain can be quarantined in US. You can pay only 15% CGT in US, or roll it over into the next purchase.
NZ is not a broad tax country.
Dymphla focused on multi-family properties over there
Properties Dymphla bought, cheapest 23k, mostly 35-40k without the need for reno
Only 1 property she had vacancy that she bought for life style.
Condo conversion = strata title
Single family home yield was 15% a few yrs ago, now with the price coming down, they can be 20-30% yield
People over there have corporate mentality, particularly in manufacturing industry.
Normal foreclosure rate was 4% GCC, (0.4% in Au), now 8% there, and .6% in au
No FIRB equivalent regulation for foreigners over there
Each state is different.
Over there institutions can clean your credit in 6 months if you know how to do it. Here it’s 3 years from bankruptcy + another 7 years before the record is cleared.

Structure
It’s crazy to buy anything under your name over there.
S corp not available to foreigners. C corp is similar to company here, but it’s a stronger entity, unless. To go after director, you have to prove fraud.
LLC can be like a company or act as a pass through company to pass the profit to its members, or you can pass the profit to the member being a Australian entity such as a piggy bank trust.
Trust law differs from state to state, and it’s more difficult. LLC is just as good for Australian.
Some state you pay both federal and state tax on your rental income. Some state has no state tax at all.
If you buy properties in a few different states, you can start with LLC, as you accumulate more, it’s worth set up a c-corp in state w/o state tax.
Navada and wyoming don’t have state tax.
You can set up LLC here, difficulty is setting up bank account for LLC.
Three is a process to set up bank account and structures.
When you have your personal bank account, it’s easier to have LLC bank account set up （can I do it offshore then?）. Then you have your EIN (entity identification no) for your LLC.
Once they get you identified, it’s easy to add another one.

Finance:
Hard money: a private lender who lends at very high rate. E.g. 16% for 6 months with balloon payment in the end. 1 day late, they take the property.
In the last 3 months, hard money dries up. You couldn’t get bank finance unless you are prime premium American, but the bank has eased. Private money prefers to lend 50-70% LVR to a foreigner, at around 6.5-8.5% （2% normal finance over there）.
A little bit of bank finance is coming back.
A lot of brokers will not touch a deal <$120k, so you group a number of properties together for financing, but it’s a slow process.
You are better taking the line of credit here and pay cash over there.
Quick plan D: taking over someone else’s mortgage

Team required:

Sec1031 for CGT roll over
It’s tough to have property managed over there. They are starting to have property management in some areas. That’s one of the biggest obstacle is to find good managing agent you can trust.

Renovation = rehab; You’ll be astounded how little it costs. One tradie will have a team of people working under him that’s lowly paid. Au price is sometimes 3-4 times higher.
Going to home Depot site (Bunnings equivalent), you can set up a Depo account once you have a credit rating. You can cost a whole project on their website. Dymphla had a whole kitchen done <$800 which would cost $8000.

Insurance
It’s similar to Australia. $300-$800.

Research
Without going there talking to people, you are going there blind.
When you target varing areas. You are never going to invest in ever state, if you are looking for uplifting area, you look for where the price really dropped. If you are buying for cashflow, it’s a completely different type of property.

Tax deeds and tax leans?
Council has the right to sell property if someone doesn’t pay their rate (property tax they call it there). Tax leans can be bid online over the internet. Selecting state is important. Some state has claw back period of 4 years. There is a guaranteed return on the tax lean.

Say $8000 tax lean, you get 18% yield + penalty and your $8000 at the end of 2 years. If they don’t pay, then you get the property at the end of 2 years. You might bid $10000 say and still get good return, but if you end up with the property, you can’t reno or do anything until the claw back period is over.
Missisipy is 4 years.
Don’t buy property with existing deed or leen which becomes your liability when you buy the property.

Status of market
The market has continue to fall through this year. We have just starting to see the market turn in some sector.
Financing market has just started to turn.
There will be a 2nd tier fall out in the commercial industry. It won’t affect the yield of the high cash flow residential property Dymphla is talking about. People still have to live somewhere. The vacancy rate in a lot of these places are very very low. The only thing it will do is the growth might be slow.

Caution about buying commercial at this time, maybe end of 2010.
The seminar

Feb 6-7
Novotel Sydney brighton beach, Brighton Le Sands 2216
Preforeclosure, foreclosure and post foreclosure propertyis
PT: not having to pay tax ever




To Dos:
1. Ring citi bank to apply for credit card.
2. set up an LLC
3. secure good management agent
4. to buy, check the property doesn’t need reno, doesn’t carry a deed or leen,
5. follow Dymphla’s system to get a credit rating in their system

fibro and asbestos checklist

http://more.nsw.gov.au/fibro-and-asbestos-first-steps-checklist

building surveyor

Trevor in Berick 97072179; building surveyor who might do inspection

 

A building permit cannot be issued after it's built.

Mildura college lease

http://www.abc.net.au/news/stories/2008/10/24/2400015.htm
Posted Fri Oct 24, 2008 9:50am AEDT
Map: Mildura 3500
The Mildura Rural City Council will push for an overhaul of the city's college lease scheme.
The scheme was set up by the region's founders, the Chaffeys, 100 years ago, and consists of 184 commercial and residential properties that are subject to college lease fees.
A review has found it is showing a return of only 2 per cent a year to assist the region's schools.
An assessment by a Sydney consultant commissioned by the Mildura Rural City Council has found returns averaging 6 per cent could be achieved if the land was sold and the proceeds reinvested.

http://www.mildura.vic.gov.au/page/PagePrint.asp?Page_Id=2581
Community Loses On College Lease: Report - 23/10/2008


A Mildura Rural City Council-commissioned report has found the region’s college lease land is returning only 2.1% per annum to local schools.
There are 184 properties in Mildura Rural City that are subject to college lease and an independent assessment conducted by Sydney firm AG Private Advisory has found that higher returns on this level of investment could be brought forward to local schools through more conventional financial means.Upon receiving the report at its October meeting, Council has committed itself to proactively facilitate a change to the Mildura College Lands Act (1916) enabling the College Lease Trust to sell leased land and reinvest proceeds in secure investments, generating improved returns and opening up leased land for development.A 2004 Ernst and Young report found the value of College Lease holdings was $39,338,000.Councillor for Community and Economic Development Vernon Knight said College Lease agreements were causing financial hardships to many leaseholders.“The financial imposts imposed by increasing college lease rentals are significant for many families who lease land from the College Lease Trustees,” Councillor Knight said.“The report shows that a conservative cash investment strategy implemented since 1990 would have earned an average of 6.6% annually. It is thus clear that there are potentially many more effective investment options that could deliver great benefits to the region’s schools while relieving land owners, many of them families, of the financial impost imposed by college lease agreements.“This report confirms that current college lease arrangements are an anachronism that is holding our community back and not delivering true value for our education sector.”

http://www.mildura.vic.gov.au/page/page.asp?page_id=2031

Council Campaigns On College Lease - 27/7/2007
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Mildura Rural City Council will be lobbying the Victorian Government to help ease the squeeze on some owners of land covered by College Lease.The move follows a recommendation Councillor Vernon Knight put to the July Ordinary Council meeting held yesterday.
Current Victorian legislation requires Council’s valuers to consider College Lease property to be sub-divisible land in the event that its zoning would make this possible as if the property was unencumbered freehold.This is in spite of the fact that subdividing College Lease land is generally unprofitable.This discrepancy can have significant effects on the rates some college lease holders are required to pay. In line with college lease rental land owners pay to the College Lease trust annually, the requirement that college lease restrictions are not considered in the valuation of properties can have significant financial implications.While adopting its Hardship Policy which aims to assist people who are experiencing difficulty paying Council rates at its Ordinary July meeting on Thursday, Council also adopted the following:“Council make representations to the Planning Minister in relation to the provisions of the Valuation of Land Act which requires Council Valuers to consider College Lease property to be sub-divisible land in the event that its zoning would enable sub-division were it not College Lease.”Following the adoption of the recommendation, Council will be seeking to amend the Valuation of Land Act (1960) to ensure the definition of Capital Improved Value takes into account the fact that College Lease land cannot be subdivided profitably and should be valued on that basis.The act states:"Capital Improved Value means the sum which land, if it were held for an estate in fee simple unencumbered by any lease, mortgage or other charge, might be expected to realise at the time of valuation if offered for sale on any reasonable terms and conditions which a genuine seller might in ordinary circumstances be expected to require." Councillor Knight said he understood there is a situation which has affected a number of people in Mildura. “It’s clear that the whole concept of College Lease would not have been considered when the Valuation of Land Act (1960) was framed,” Councillor Knight said.“Given the residential development that often adjoins such properties, Council valuers are required to consider the capital improved value on the basis of its potential value for subdivision in spite of the restrictions on subdivision that College Lease places.“Anomalies such as this again raise questions about the appropriateness of College Lease in its present form and the need to review the nature of the trust.”

Better building price

betterbuildingprices.com.au
1800833956

Process:

pay 50% Design report, bal. 50% on completion of the report. The report needs to comply to council regulations. BBC then find the best builder tender, Design report fee is then refunded. Builder pays BBC fee.

single story design $4500; double story $6000
check with Archicenter what their design concept costs.

Reno tips

to paint bathtub and bathroom tile: use white knight tub-tile paint
to paint cupboard doors and benchtop: use white knight laminate paint
to paint splash b ack: use white knight tile paint

use new chrome handles
use heavy duty cleaner for stove and rangehood

Port Hedland: major mining town. building cost at premium if you hire local builders as the mines pay overprice.

shop online at harvey normal commercial arm and have a/c etc delivered to hedland, then pay a Sunshine coast builder to go to Port Hedland to build it. Total cost is 60% of hiring port hedland local builders.

 

Ecobuilding systems - cheaper building and energy efficient, std 3 br house can be erected in a week,

 

Moree, an agricultural town in northen NSW, cotton brings in lots money - it's got a good foundation. It's never going to be a ghost town, and never going to be a huge flyer. It brings cashflow but not to get excited over units - sb. else already made money. Towns like Moree are generally pretty good with dividing up. A typical little chunkers, they will become more and more positive as the years go on, so you can have more growth properties elsewhere. There are a lot of termites there, do the building and pest, make sure the building is low maint.

 

Ballarat is another nice chunker town. It's a number of rural industry around it. Look for value adding oppurtunities.

 

 

Deed vs Agreement

1. there is no need for consideration for a Deed to be a binding contract.

2. Deeds have a number of execution requirements. The term "signed, sealed and delivered" is a requirement for a Deed. 

3. Limitation period for which a claim can be brought for breaching an obligation is different for Deed and Agreement. In Queensland, a claim for a breach of an Agreement must be commenced within six (6) years. However, with a Deed, the period is twelve (12) years.

ripple effect

Nov 07: Middle Park and Port Melb had 50% and 30% growth in the previous 12 months to Nov 06?

Nov 08: The adjoing suburbs on the bay Elwood, St Kilda and Elsternwick  had 18.2%, 35.3%, and 24.2% growth in the 12 months to Nov 08. All 2 suburbs's 10 year growth rate lie between 10-12%.

 

Sought after public school:

 

McKinon secondary college

Frankston high school

 

Reno value add tips:

 

 

1. Extra storage space:  BIR (double height hanging space and to get as compartmentalised as possible), vanity with cupboard, drawers into bathroom, cupboards under stairs, storage in attics, loft in garages,

2. put laundry in cupboard or under bench, and convert existing laundries into bathrooms with all the plumbing in place 

3. substitue or create a wall with shelving to separate two spaces

4 Shed: blend the shed in with the home and create a concrete based floor while installing suspended platforms in the ceiling for better storage and to keep as much off the floor as possible

5. The lighter the house feels, the more spacious and applealing it will seem to prospective buyers and renters (add skylight, or open up the back of the propert on the backyard with French or Sliding doors)

 

 

 

 

 

 

 

 

Room by room rental agent for Croydon

Benchmark Real Estate
03 9877 0555

I found a rental ad from them for a room by room leasing in Croydon.

sound proof walls

We are looking at a property that backs into a railway line. Apart from the concern for noise, everything else looks perfect.

I looked up online for a cheap and effective sound proof wall. Here is the search result:

http://www.modularwalls.com.au/

They don't just do sound proof walls, the Ali wood fence makes the outside of the house so much better looking, and masonry looking "garden wall" certainly make the backyard with swimming pool now look million doors. Hm, fencing is a great cosmetic reno item - so, buy house with ugly front fences! (with a discount of course).

It says the garden wall is ideal for noise reduction from a main road too - must check it out!

Their victorian agents are:

* MelbourneModular Walls - Victoria Ph: 1300 556 957 Mobile: 0434 218 801 Email: gardenwallsvic@optusnet.com.au
* BendigoHeuron Screenline Pty Ltd Ph: 1800 001 653Email: sales@heuron.com.au

contacts

Insurance broker (commercial, business, residential) - James Germantis 03 94694673

international investing- US

If you invest in America, there are 2 structures available: LLC (limited liability company) or C-Corp, the shares of the company is owned by the trust in Australia.

 

Because US is a broad tax country, you can quarantine the income in US. If it's not a broad tax country, you have to pay tax there as well as in Australia, no credit for the tax you paid over there.

 

How to bring back money:

 

1. money initially sent over for investment can be brought back tax free

2. I can charge a consultancy fee to the LLC there, so the LLC get a tax deduction there but I'll have consultancy income in Australia

3. Different to Australia, the cost to go over there for inspecting future purchase is deductible under US tax law.

4. LLC lend money back to Australia

 

The US insurance companies don't normally have landlord insurace equivalent. Only normal building and content insurance is available.

 

To get a credit rating with the banks in US, apply for a credit card and start using it. Generally >4 units are regarded as commercial over there.

 

Same as any investing, sensibility analysis and opputunity cost analysis should be performed. For the additional risk investing overseas, you need higher return (for yield or growth) to compensate it.

 

house relocation

1. rule of thumb - it cost about $40k to relocate and reconnect a house

2. make sure the relocater has adequate insurance - say if the house got damaged during transportation

3. finance - banks usually only lend on the land. After the house is relocated and reconnected, and got the permit from the council, then the house&land could be refinanced as a package

4. permit - check with council and town planner before relocation whether the house would ok to put on the land. - We don't want neighbour objected after relocation!

 

 

Transitional Growth

• Look for properties in areas of growth lag
• fundamental analysis: industry, population,infrastructure (new hospital, new schools,new shopping centers-where are the big boys spending money next? employment, transport, building trends
• adverse public perception
• Media attention
• look for emerging economies - do you own micro economic analysis
• prime location- water views, proximity to amenities
• rise in renovation and new constructions
• stage one of new developments with big marketing budgets - it's vital to get in early
• cost of living of the city reflects housing price level of the city,
• display homes - get on the waiting list of the big developers for their next display home
• due diligence

 

oppurtunities are often disguised as hard work and most people dont' recognise it!

 

what to pay for a business

buying business, target return is 20% after paying wage to owner, to cover the extra risk of being in business.

20% equals 5% term deposit return, 10% for risk, 5% for illiquid asset risk

 

normally when you buy a business, you ask for a few year's tax return to look at. Normally you are given 3 years.

 

Adjust income that doesn't affect the purchaser, e.g extraordiary items, voluntary exp such as donation, motor vehicle 

 

average profit of last 3 years

 

how much do you pay for goodwill, it depends on the busines, some will be 3 times of the profit, some just 1 time

 

good will tax for seller: 50% discount, 50% discount to small business owner, can roll over.  Equipments tax is different. It's in the seller's favor to allocate more return to good will

 

Look at the business and look at how many of them incl. freehold. sometimes the owner got so fed up, they discount everything including freehold.

 

There are agents specialise in cash business, easy to managing business

 

keep investment debt and personal debt separate, split the loan!

commercial proerty etc

airspace

volume metric title - qld

zoning

 

location, size, resellable   

 

 

1st thing you look at how much you need to put in, and how you can borrow more so it requires less capital, and do your oppurtunity ROI

 

cbd service departments: high fee, borrowing 70%, if<50sqm, if it's just one room like a hotel room, it's hard to finance, hard to sell ,capital growth might be limited. If you have a poor site manager, you can't do anything with it.

 

big commercial property - vendor finance a very good possibility. other things to look at include if they are on market rentals; strata title possibility : ask the owner to strata title it and I buy some of them

 

commercial lease option is for the tenant to opt out. There might be  a clause to review the rent to market rental on exercise of the option; in terms of who pays for outgoings, it stays with the terms of the original lease,  you can't just change it

property data solutions

 

room by room rental property insurance can be  a big issue. If the property is not zoned for this type of use, your insurance is invalid

 

Property under managment:

check efficiency of management, how?

check all operational contracts and side deals

what's your control

what's your exit plan

what's your disaster plan

can you sell the managment only, and you keep the free hold

commercial proerty price and due diligence

commercial property price works on capitalised rate= rent/cap rate, if it's vacant, it still has some intrinsic value depending on the building material, time on the market, vacancy period

 

is there high vacancy in the area, high vacancy of this type of property in the area, zoning and permitted use

 

more abt Trust

A good trust deed should be able to be amended so the trust can continue after 80 years. Appointership and the shares of the corporate trustee needs to be passed onto the next generation in the will.

family court sees through structure, so you need to shift the interest of the trust to your children instead of yourself, and that would carry some weight.

Piggy bank trust owns all the shares of the corporate trustees. It owns nothing but shares, not property, not business, not equipment. Therefore that's the only trust can have a personal trustee.

not every benefitiary needs to be named in the trust deed. If they are, then bank require them to sign the documents when you borrow!

set up a testimontory trust within the will to quarantine the benefit of the children, children will then have tax free threshold just like an adult. It's very important to think who can be the trustee of the trust when there is minor children involved, as the trustee has all the power and can flitter all the assets away.

If trust is not doing anything, you don't need to lodge anything, so no ongoing cost if inactive.

buying more properties in trust cost more in land tax as they have a lower threshold. When the entities are grouped, only the entity that owns the property pays the land tax. If a corporate trustee owns a few different trust, each trust pays their own land tax

Appointership is a job not an asset, so it cannot be taken away from the bankrupt - a court judgement when the other side try to take over the bankrupt's appointership of a trust.

Gifting of assets to trust:

If you borrow money from family home and gift the mone to trust for purchasing investment property, you forgo the right to claim interest deduction. In the event of bankrupcy, they can clay back the gifting up to 4 years ago.

It's better to have a signed and witnessed Deed of Gift to record the gifting. Sometimes you can have a blanket deed to cover continuous gifting

Trust essential

In most cases it's not worth putting family home in a trust in AU as you give up your capital gain tax discount.

 

Have a registeed mortgage over your own property, so you stand 2nd in line behind the bank

 

To move from PPR 1 to PPR2 , and use PPR1 as investment property

 

PPR1 worth 600k, mortgage $100k, sell PPR1 to TrustNG for $600, Trust NG (Me the director of corp trustee) borrows $600k and use the property as investment, the interest is fully deductible, but we need to have income distributed from a different trust to take the tax benefit

 

I get paid $600k by Trust NG less $100k mortgage, I have net $500k to buy PPR2

• The settlor must NOT be a beneficiary, or it will render the trust invalid.
• Settlement fund ($20 or so) must be a donation and it cannot be invoiced for, or it will render the trust invalid.
• Trust CF+ or Trust business distributes profit to Trust NG, but the trust deeds need to allow income to be distributed between trusts.
• A good deed should also allow change of trustees
• Divorce courts will see through structures if the assets are accumulated during course of marriage
• no  more than 4 trusts under 1 company
• Don't put different risk class assets in same structure (not trust!), as liability can flow from Trust 1 to Trustee then to Trust 2
• Piggy bank trust owns the shares of all the non-trading trustee companys. I am the trustee of the piggy bank trust.
• I should be the appointer who can change trustees.

 

 

 

due diligence for cf+ properties

1. consistent strong demand for rental property
2. relative low purchase price
3. Make sure the regional area is large enough
4. population > 10000, except if it is within proximity to a regional town with large population
5. major industries
6. how seasonal are these industries
7. potential downturn in these industries
8. expected growth
9. historic growth
10. external forces that may affect the town
11. what demand is there for rental and what types of properties are in demand
12. historical capital growth rate for the town
13. is there an over/under supply of rental

 

 

street advisor

A resource to find out what others think of the street in the suburb;

not sure who made the comments - could be just the proud owners. aha

 

http://www.streetadvisor.com.au

 

How to rate a house on the street

When developing the rating ask yourself a simple question. Is the house better or worse then other houses in the street or is it similar? Don’t dwell on it, your immediate reaction is what we are looking for here.

If you say similar then we have the answer the property is rated as a 5 out of 10. If you say better then we now know it is rated at something greater than 5 and likewise if you say worse then it is rated at something less than 5.

Now let’s select a rating either above or below 5 based on your answer.

As the typical property in your street has a rating of 5, this is what we shall begin with. Add or subtract 1 to, or from 5 each time you answer the following questions.

If the answer is yes or no by a “country mile” then add or subtract 2. If it is neither better nor worse do nothing:

Houses

Does it look better than most properties in the street? Add 1 if yes, subtract 1 if worse

Is it newer or in better repair than other properties in the street? Add 1 if yes, subtract 1 if worse

Is the house larger then is usual for the street? Add 1 if yes, subtract 1 if worse

Does the house have more bedrooms then is usual for the street? Add 1 if yes, subtract 1 if worse

Is the land content more than is usual for the street? Add 1 if yes, subtract 1 if worse

Does the property have a better view or aspect than other properties in the street? Add 1 if yes, subtract 1 if worse

Units

Is the block of units better than others in the street. Better facilities and newer? Add 1 if yes, subtract 1 if worse

Is the interior of the unit in a better state of repair than you would find in the same block or others in the street? Add 1 if yes, subtract 1 if worse

Does the unit provide a larger living area than is normal for units in the area? Add 1 if yes, subtract 1 if worse

Does the unit have more than 2 bedrooms? Add 1 if yes, subtract 1 if worse

Does the unit have a better than typical view for the street? Add 1 if yes, subtract 1 if worse

Is the block of units situated in a better location than others? Add 1 if yes, subtract 1 if worse

Where the outcome of the above is more then use a rating of 10 and likewise a low rating can not be less than 0.

Premiumly presented property will always attract a premium price.

 

EPA register

A victoria state government site to check if the area is containminated:

 

http://www.epa.vic.gov.au

 

 

Under Lan, You can download the the prority site register to check if the land has been containminated.

http://www.epa.vic.gov.au/land/

How to spot a bargain

http://www.realestate.com.au/doc/Resources/Buy/fhbg/how-to-spot-a-bargain.htm?rsf=newsletter_rea

Everybody likes to get a bargain. Whether it is everyday goods, such as food and clothing, or more expensive items, such as cars and real estate, there are bargains to be had.

It is relatively simple to spot a bargain when shopping for food, clothing or even cars as all you need to do is compare prices and brands. It is not so easy when looking at real estate, but the rewards when you do find a good deal can be tremendous.

There are five tips to consider when looking for real estate bargains:

Keep your eye on properties for sale
Search the public trustee, deceased estates and mortgagee sale websites
Recognise any renovation potential
Understand the development potential
Ask the right questions

Keep an eye on the properties for sale in your area You need to keep an eye on the properties for sale in your area and, in particular, the time they spend on the market. The longer a property has been for sale, the more chance you have of picking up a bargain.

However, this is not always the case. A property that has been on the market for a long time but whose asking price has not changed is unlikely to be a bargain. This indicates that the vendor is not willing to budge on their price. On the other hand, if you see that the asking price has continually dropped over a period of time, your eyes should start to light up as this is a sign that the vendor is flexible and could be willing to negotiate as they have to sell.

Search the public trustee, deceased estates and mortgagee sale websites When people are forced to sell, due to a death or mortgagee sale, the property can often sell for less than it would under normal circumstances.

A deceased estate can be off putting to many potential buyers. The property is often not presented in its best state as it may have been vacant for a period of time and the house has a musty smell, the garden is overgrown and the faults of the house are very evident. In the end, the sale price will be determined by how quickly the beneficiaries are keen to receive their money.

In a mortgagee sale, the bank has a duty to try and achieve the best price they can. This is so that it can recoup its money and then the vendor can keep any funds that are left after all debts have been paid. However, in a buyer’s market, which is what we are currently experiencing, it is the buyer that will determine the final sale price, not the seller.

As mentioned earlier, forced sales will often result in properties selling at lower than expected prices. However, low prices don’t always mean that it is a good buy. For example, buying bruised fruit at half the normal cost doesn’t represent a bargain. Nor does buying imitation top brand names at a fraction of the real cost. Buying something cheaply doesn’t always represent good value.

Recognise any renovation potential Bargains are often bought because other people don’t see the potential of the property. Most people will walk through an old house and only see the peeling wallpaper, ugly carpet and an old fashioned kitchen. Renovators will see an opportunity to paint the walls, rip up the carpets, polish the floorboards, expose the authentic fireplaces and put in a modern kitchen. Many people choose not to see the opportunity as they don’t know how to renovate and think that the costs of a makeover are too prohibitive.

Understand the development potential Most people will drive by a property and see a run-down house on a large block of land. Those who are familiar with property development and know the rules and regulations of the local council will see a unit site. To the novice it may seem daunting at first to contemplate building units, but it is just a matter of confidence. Knowledge will build your confidence. You only need to know a little more than the rest to be able to pick up a bargain.

Ask the right questions “Why are they selling?” is the best question you can ask. If they don’t give you an answer, continue to ask open-ended questions. An open-ended question will force the sales person to give you more than just a “yes” or “no” answer.

For example, you will gain a better insight into what price the vendor will accept if you ask: “If I make a cash unconditional offer with a short settlement, what figure do you think they will accept?” Rather than: “Will they accept $350,000?”

The first answer may reveal the lowest offer they are willing to take, whereas the second question will only provide you with a “yes” or “no” reply.

Peter Koulizos is a university lecturer and author of The Property Professor’s Top Australian Suburbs. You can buy Peter’s book at our online bookshop.

To read Peter’s other columns, visit Peter’s property pep talks

website to check vacancy rate

This is a great tool from SQM research.

1. To check vacancy rate by region or postcode:

http://www.sqmresearch.com.au/graphs/terms_vacancy.php

or

2. go to the following link directly to check by postcode:

http://www.sqmresearch.com.au/graphs/graph_vacancy.php?postcode=3000&t=1

Just put in the postcode or the name of the suburb.

If the % result doesn't mean much to you, check out a few suburbs you know and compare the result, it will make more sense.

3. You can check out other data too by going to the home link:

http://www.sqmresearch.com.au/graphs/

Choose the postcode and the type of graph at the bottom. Things you could check out include

• count of established properties: house, semi-detached, unit
• % of mortgage repayment to total household income before tax
• median rents
• weekly family income
• Occupant type (comparison by Owner Occupiers, Mortgage Holders and Renters)

You can check here other things too, such as:

What needs to be in an agreement

source: http://investinginproperties.com.au/

Any partnership, no matter how small or large, and no matter who it is between, must have an agreement that covers the interest of both parties.

It is best to have a solicitor draw up an agreement for you. When considering what needs to be in the agreement, work out the absolute worst case scenarios for all parties, and make sure those issues are covered.
Some partnerships are between friends or family. Regardless, remember that your relationship with your partner may be in jeopardy if something goes wrong, so it is important to cover everything you possibly can in the agreement.

Here are some of the areas that need to be covered.

Firstly, the agreement needs to state clearly who is involved – this could be individuals, or entities such as trusts or companies.

Make sure the agreement is dated, and beginning and end dates are clearly stated. If you are unsure of how long the partnership will take, cover this so that all partners are clear.

Remember that circumstances can change very quickly, so cover the possibility of someone needing to end the agreement quickly. How will this happen, what period of notice needs to be given, how will the partner be compensated.

The agreement needs to clearly state the terms of the partnership. If the partnership involves money, profit shares, bonuses or interest payments, make sure these are clearly stated with no room for misunderstanding.

You may be part of a partnership that involves something other than money – for example, knowledge, skills or time. Again, make sure that the terms of this agreement is clearly stated.

The agreement is a legal document, and therefore must be executed in a legal format. It will need to be witnessed and signed by all parties. Depending on the law, you may need to have a Justice of the Peace certify the document, and, in some cases, you may need to lodge the documents with some authority.

Agreements also need to be in place for when the partnership is dissolved. Make sure that all parties are released in writing from the partnership, and that all obligations of the partnership are met. Have each party sign off on the partnership.

There are many other areas that could be added to an agreement. The main consideration, however, is to make sure that you have covered all possible scenarios, and that you have a legal document drawn up for you covering all parties.

Early access clause

"In order to allow the buyer before settlement to take measurements and obtain quotes for renovations and building work which they propose to carry out following completion, the seller agrees to allow the buyer access during business hours to the property upon reasonble notice to the seller or its agent. The buyer will also have the right to have access to the property during business hours before settlement upon giveing reasonable notice to the seller or its agent for the purpose of showing the property to prospective tenants or the buyer's rental manager."

Structural engineers

Soil Test / Footing Inspection

David / Geologist, crack specialist 9722 2611
Does not do prepurchase work
Most of the time underpinning is not recommended and it might cause further problem.

Mark Dishon
Rock Solid Pty Ltd
Ph:(+61) 3 9335 6122
Fax: (+61) 3 9335 6733
www.rocksolidgroup.com.au
mdishon@rocksolidgroup.com.au

Rental Manager

Wes Davidson / Horsham 53820000
Property Manager: Kerry
4 people in rental, manages 450 properties with 8 vacancies currently
leasing fee: 1weeks rent + GST
8.8% management fee

Gerry Smith First National /Horsham 5382 6655
Rental manager: Pathy


Bell R.E Sydenham
Senior rental manager: Michelle
9 years in office
320 properties
280-300/w rent for hillside ppty

GT4 - 28 Feb 2009

A quote from Brendan:
Assume nothing, check everything, trust no one, get it in writing!

Forecast:
Unemployment is going to get worse, reaching 9% by the end of the year. For buy & hold, invest in low-medium bracket, because if people in the upper and middle level lose their job, they can downgrade to the low-medium brakcet.

Brendan's prediction:
Extension of first-home boost will be annonced late May, and the first home buyer activity will peak when the first home buyers feels a relief from the urgency of buying soon. July & Aug 09 will be a period vacuum of buying activity, hence a good time to buy. The next opportunity is Dec 09.

Research Tips

Cosmetic renovation
Reno for renting is different from reno for selling!

$5000 rule for cosmetic renovation
As a rule of thumb, each small renovation of project costs around $5000. For example,
replaster the house, around $5000
rewiring $5000
kitchen $5000
bathroom $5000
floor $5000
etc,

So if you have a $15000 reno budget, you have to pick which 3 projects to do to maximise the end return.

Structural Reno
Fixed quotes are the best estimates (Not T&M). T&M places no urgency on tradies to get the job done.

Structural reno often involves big $, it's worth backing up the figure with a Quantity Surveyor's report.

Speak to "Extension" or "Renovation" specialists - cheaper than Architects.


Land Subdivision

1. Get start from Template 19, then contact
2. town planner in the council

• restrictions, overlays, provisions, etc

3.Contact a local or referred land surveyor
- Get a detailed Surveyor's report ($500-$1000).
Q: where can I find a sample of such report?
- Other local authorities:
4.Contact a local or Referred town planner
5. Council planning/authority:
- contribution levies (the biggest hidden cost)
- timing requirements (budget for delays)
- verification of the surveyor's report
6. Local Service Providers
- Power, Water, Sewer, Gas, Phone

Development

1. start from template 19
2. Local town planning consultant
- dertermine overall process
- quotes from different Service Providers : Power, Water, Sewer, Gas, Phone
- Architect
- Quantity Surveyor's report
3. Development companies
- Outsource the contruction project. Get fixed price quotes. Variation is a killer
- visit existing similar developments. Visit construction sites and speak with builder
4. Get estimates from cookie cutter builders

Property Prices

Get multiple opinions from multiple surces and draw your own conclusions:
1. Property reports on recent sales history for similar properties
- Australian Property Monitors: homepriceguide.com.au
- RP Data: myrp.com.au & rpdata.com.au
- Realestate.com.au Sold properties
- Realestate.com.au For Sale properties
- PDOL; consolidated membership works out about $141/quarter
- Basic reports - suburb history for 12 months $50 - $200
- API Magazine
- Title maps
Cross referencing all the above

2. The competition
- OFIs
- Reno quality
- Finished unit quality
- size of house/land
- Location

3. Real Estate Agents
- pretend I want to buy one, how much am I expected to pay for this sort of property?
(likely to get more realistic price with this approach)
- I want to sell one, get me reports
- I want to see one

4. Target market
- who am I selling to?
- what do they want?
- what's selling well?
- buyer's expectations?

5. where there is low sales history
No recent sales
-Review prior period
No comparative sales ata ll
-Review a different but similar type of location
-Be ware of pioneering = big risk

6.Unknown economic circumstances
-When will my project end?
-What's currently going on in the economy
* Media: Lateline on ABC, ABC radio 774
* hotspotting.com.au

7. Formal valuations:

Rental Due Diligence

1. Residential
- Property manager:
price vs condition vs location: supply!
number of vacancies? How long listed?
- Council : population trends, demographics

2. Commercial:
- Commercial property manager
- Council: Industrial developments in the area
- commerical trend

3. Population and Demographics:
- long servicing local agents
- council websites and ABS reports

4. Area income stability:
- what's the primary source of income for the area?
- increasing?stable? decreasing?
- RP Data, council websites, ABS reports

Town Planning
F.R. Perry & Associates

The most profitable way of development is by rezoning the site to a higher use zone, but it's a time consuming and requires large capital.

The 2nd most profitable way is by developing the land into multidwelling site.

DSE website : www.dpcd.vic.gov.au/planning
VCAT website: http://www.vcat.vic.gov.au/

Components of a planning scheme:

• state planning policy framework
• local planning policy framework
• zones
• overlays
• particular provisions
• general provisions
• definitions
• incorporated documents
• list of amendments

Zones: A zone controls land use and development.

Residential Zone considerations:

• the impact of new development o people's amenity
• compatibility with neighbourhood character.

Neighbourhood charactor is open to wide interpretation.

• subdivision design and housing respond to market demand
• compatibility with strategic planning objectives.
• the interface between residential and non-residential uses

Development of land includes the construction of a building, carrying out works (such as clearing vegetation), subdividing land or buildings, or displaying signs. the zones indicate whetehre a planning permit is required to construct a building or carry out works.

Some buildings and works, such as fences and underground services, usually do not require a permit.

Overlays (clauses 41 to 45) control development and are equally important to zones. Overlays apply to areas identified for strategic change or control of issues such as Heritage, Flooding and Design and Development.

There are 22 standby overlays:

-Land Management overlays

-Environmental Significance Overlays

-Special use Overlays

Overlays also have schedules that give distinct controls for particular locations.

Particular Provisons (clauses 51 to 56):

Other planning requirements such as advertising signs, car parking or specified type of use are listed under particular provisions.

It's essential to check whether any of these requirements apply to the land before comensing any use or development.

clauses 54, 55, 56 are particularly relevant to residential development and subdivision.

Incorpoerated Documents: the purpose si to add consideration to a particular issue that relates to the area and is to be read in conjunction with specified provisions to the planning scheme.

General provisons contains information on matters the council must consider before deciding on a proposal under this scheme.

Planing application

step one:

• use the planning scheme map to determine the zone and whether the land is covered by any overlays
• determine whether the use rquires a planning permit.
• determine whether the a planning permit is required for building and works.

Step two:

complete planning application form:

complete and assemble the supporting document including:

• plans
• traffic reports
• planning report
• architectural statement
• photos
• copy of the certificate of title
• submit to coucil

(Perry's firm will commission different people for these reports.)

step three:

• advertising, including notice on site, notification in writing, local newspaper
• submissions in reponses to advertising
• mediation meeting
• consideration by council
• decision by council

step four (if applicable) Planning appeals -VCAT

The following things can be appealed:

• decision to grant a permit
• decison to refuse a permit
• conditions on a permit
• a requirement to give notice of an application
• a requirement by the responsible authority for more information
• a decison of the responsible authority refusing to extend time
• a failure of the responsible authority to extend time
• a failure to grant a permit within the prescribed time

Building permits generally only relates to the construction aspect of a building or other developement.

A building permit is required in most cases involving development. A building surveyor shoul dbe consulted if any building is proposed. if a planning permit is required, it must be obtained before a building permit can be issued.

Development Policy - Yarra Range Planning Scheme

DEVELOPMENT IN RESIDENTIAL, RURAL LIVING AND RURAL AND GREEN
WEDGE AREAS
page 224 - 228 extraction from Yarra Range Planning Scheme

22.11-3 Policy
24/05/20067 C66


It is policy that:
􀂃 Buildings and works generally be contained on land that:
􀂂 Has a slope of less than 20 percent (a ratio of 1 in 5).
􀂂 Is not liable to flooding.
􀂂 Is not subject to subsidence or landslip.
􀂃 Any development be compatible with the surrounding neighbourhood, and be of a scale
and design that respects the environmental and built elements of the surrounding area.
􀂃 Any development not adversely impact on the natural environment of the land or the
surrounding land or watercourses, by ensuring that:
􀂂 Earthworks, filling and excavations are properly stabilised, battered and landscaped
predominantly with indigenous vegetation so that soil erosion and runoff are
minimised.
􀂂 The natural drainage system, including nearby watercourses, sub-surface drainage
and the water table, is not adversely affected.

Building setbacks in a Residential 1 Zone, Low Density Residential Zone,
Green Wedge A Zone and Rural Living Zone

􀂃 Building setbacks, height, site coverage and design enable the efficient use of the site,
whilst also recognising the amenity of the surrounding residents, and the residential and
environmental character of the area.
􀂃 The development be set back a reasonable distance from common boundaries with
adjoining residential properties, to ensure the protection of the residential amenity and,
where appropriate, provide for the establishment of an effective landscape buffer.
􀂃 The setback distance be sufficient to ensure that:
􀂂 There will be no adverse impact on adjoining properties.
􀂂 Daylight to adjoining habitable rooms will not be significantly reduced.
􀂂 Buildings will not significantly overshadow neighbouring secluded private open
spaces or main living areas.
􀂂 Windows of buildings will not directly overlook habitable room windows of
adjoining properties.
􀂂 The development will not increase the impact of the proposal on surrounding land
uses.
􀂂 There will be no increase in the impact of the development on existing remnant
vegetation.
􀂃 Building setbacks from road frontages:
􀂂 Generally reflect the development setbacks on adjoining properties.
􀂂 Have regard to the need to avoid the removal of vegetation.
􀂂 Be consistent with the overall character of development within the locality.
􀂃 If frontage of the site is to a minor road, any building be set back at least 7.5 metres
from that frontage, and if frontage is to a main road, the building be set back at least 10
metres from that frontage.


Building height in a Residential 1 Zone, Low Density Residential Zone, Green
Wedge A Zone and Rural Living Zone
􀂃 The construction of a dwelling or an extension to an existing dwelling:
􀂂 Be of a height that is below the tree canopy level and take into account the height of
surrounding development, the slope of the land and the impacts on views into the
land from adjacent viewpoints.
􀂂 Not result in any part of that building being more than 11 metres above the natural
surface of the ground directly below that part.
This does not apply to a domestic television or telecommunications facility or a
chimney, flue pipe or heating or cooling appliance.

Landscape character and neighbourhood amenity
􀂃 Any development proposal demonstrate that the proposed buildings and works will not
compromise the landscape and environmental qualities of the surrounding area, or
substantially change the natural land form.
􀂃 All development be designed and sited to:
􀂂 Have regard to the built form and to maintain design consistency with surrounding
development and avoid detriment to the local environment.
􀂂 Recognise the land capability of the site in terms of slope, land subsidence potential,
viewlines, enhancement of landscape values, protection of water resources, retention
of indigenous flora and fauna and associated wildlife habitats and other local
amenity considerations, and so as to be unobtrusive in the surrounding landscape.
􀂂 Avoid the removal of remnant vegetation, particularly healthy trees above five
metres in height, and to minimise the disturbance to the root zone of such
vegetation.
􀂂 Avoid prominent ridgelines, hill tops and other visually exposed sites.
􀂃 The external surfaces, including roofs, of all buildings, except within Metropolitan
Residential Areas as identified in the local planning policy for Residential Areas
(Clause 22.01), be treated with non-reflective materials and subdued colours to reduce
the visual impact of the development on the surrounding area. This is particularly
necessary where any development is proposed to be located on a visually prominent
site.
􀂃 All development on land adjoining recreational trails, such as the Warburton Rail Trail,
be sited and designed to minimise the intrusion of any new development into views
from the trail and to retain the overall landscape character of the surrounding area.
Landscaping and visual amenity
􀂃 On the completion of any development, the site be landscaped to protect and enhance
the residential amenity, landscape character and any environmental features of the area.
􀂃 The landscaping be planted within 12 months of the practical completion of the
development or works and then be maintained to the satisfaction of the responsible
authority.
􀂃 In all areas outside the Urban Growth Boundary and in localities in residential zones
which contain a tree canopy cover of mostly remnant vegetation, preference be given to
landscaping using predominantly indigenous vegetation appropriate to the site,
including upper, middle and lower storey plant species.
􀂃 All roads, including internal access tracks, be located, designed and constructed in a
manner compatible with surrounding landscape values and character and which
minimises soil erosion.

Provision of utility services
􀂃 The provision of utility services required for any development, including drainage,
sewerage, water, electricity, gas, telephone, roads and driveway access, be undertaken
in the manner least likely to disturb remnant vegetation and the natural features of the
land.
􀂃 For the provision of drainage, sewerage, water, electricity, gas and telephone services,
the services be underground and, if possible, utilise common trenches. The location and
installation of these services should minimise impacts on indigenous vegetation and
other established trees.
􀂃 All sewage and sullage wastes generated on the site be discharged to a reticulated
sewerage system, if available and, if not available, be treated and the effluent disposed
of within the site on which it is generated.
􀂃 All on-site treatment of sewage and sullage wastes be carried out having regard to the
Environment Protection Authority's Code of Practice - Septic Tanks (On-Site Domestic
Wastewater Management), 1996.
􀂃 Any permit for development where there is no reticulated sewerage contain a condition
requiring the septic tank and effluent disposal system (or any other waste treatment
plant) to be maintained to the satisfaction of the responsible authority.
􀂃 Stormwater runoff, in excess of that which can be absorbed on the site, be conveyed by
drainage to the main drainage system for the area.
􀂃 The construction of any building or the carrying out of any works be done in a manner
which addresses local drainage provision, stormwater treatment and flooding issues.
􀂃 All roads and access tracks be located, designed, constructed and landscaped to:
􀂂 Maintain the landscape values and character of the area.
􀂂 Avoid pollution and siltation of watercourses, soil erosion and unmanaged drainage
discharges on to adjoining land.

Protection of waterways
􀂃 Buildings and works be sited to avoid detriment to the ecology of any stream or
watercourse on or near the site and provide satisfactory drainage and stormwater
management measures.
􀂃 No buildings, including associated waste treatment and effluent disposal facilities, be
constructed within 30 metres of a watercourse within a Green Wedge Zone, Green
Wedge A Zone, Rural Conservation Zone, Rural Living Zone, or a Farming Zone or
within 10 metres of a watercourse in any other zone.

Dams
􀂃 Dams only be constructed if the:
􀂂 Dam is required to provide water to supply agricultural or domestic needs on the
site.
􀂂 Construction of the dam will not result in the quantity or quality of water flows in
any watercourse or wetland being reduced to a level which will detract from the
value of any watercourse or wetland as a flora or fauna habitat, amenity feature or
source of water supply.
􀂂 Design and siting of the dam will not result in dam failure or the creation of a
potential safety hazard to adjoining or nearby properties.
􀂃 Dams not be constructed within 30 metres of a watercourse or on sites which would
result in the obstruction of any permanent watercourse or the destruction of any
indigenous wetland vegetation.
􀂃 Any dam constructed be located at least 10 metres from any property boundary to
provide for landscaping and access for maintenance works.
􀂃 Any dam constructed be appropriately landscaped with

Melbourne @ 5 million

http://www.dse.vic.gov.au/DSE/dsenres.nsf/LinkView/B9023E3BAACA5A6ACA256EF60019E55806C7DF80826B65674A256DEA002C0DCA
Victoria in Future 2008 - Detailed data files
O
verseas migration

Net overseas migration to Australia is assumed to be 200,000 persons per annum for the first three years of the projection period, then 180,000 persons per annum over the remaining period of the projections. This assumption follows closely the ABS medium assumption of 180,000 persons per annum for the entire projection period, as published in "Population Projections Australia, 2006-2101". It is assumed that 26.5% of net overseas migration willl be to Victoria, consistent with ABS assumptions.

180000 x 26.5% = 47700 new imigrants to Victoria every year

Interstate migration
Net interstate migration from Victoria is assumed to be a loss of 2,000 persons per annum for the first three years of the projection period, then a loss of 6,000 persons per annum over the remaining period of the projections. This assumption follows closely the ABS medium assumption of a loss of 6,000 persons per annum for the entire projection period, as published in "Population Projections Australia, 2006-2101".

Net population increase is 47700-6000=41700 per annum projected for Victoria.

New Dwellings
In metropolitan centres such as Melbourne, there are not unlimited opportunities for housing development.

Additional dwellings are generally only created in three ways.
1. in established residential areas, through infill development (the take-up of unused lots or portions of lots, or the creation of vacant lots through demolition). i.e. vacant block or subdivision in established areas
2. Secondly, land can be converted to residential use from a former non-residential use, such as industry or education. The resulting developments are known as major redevelopment sites.
3. new dwellings can be constructed on broadhectare, or greenfields sites - vacant (generally ex-rural) land which is zoned for subdivision.

Population and number of Private Dwelling Growth Trend by LGA:

LGA with the sharpest poulation growth trends are:
Casey
Wyndam
Whittlesea
Cardinia
Which is a result of availability of additional dwellings in these areas to accomadate the growing population

Average household size change Trend by LGA:

* To calculate average household size, divide Persons in Occupied Private Dwellings (POPD) by Occupied Private Dwellings (OPD)

Across all LGAs, average houlse hold size is projected to decrease slightly by 0.13 over the next 20 years. No LGA is projected to have a different trend.

Larger household size indicates more demands for larger family homes
The household size decreases slightly across all LGAs

City of Nillumbik, City of Hume, City of whittleseas currently has the highest household size of 3.03, 3.02, 2.99, and City of Port Phillip and City of Melbourne rank the lowest at 1.89 and 1.92 respectively.

Year to June 30th 2009

** The total for the Shire of Yarra Ranges does not include data for the Statistical Local Area (SLA) of "Yarra Ranges (S) - Pt B", as this lies outside the Melbourne Statistical Division

Melbourne Statistical Division 2.57

Nillumbik (S)
3.03
Hume (C)
3.02
Whittlesea (C)
2.99
Casey (C)
2.92
Brimbank (C)
2.91
Melton (S)
2.91
Wyndham (C)
2.85
Cardinia (S)
2.79
Manningham (C)
2.76
Knox (C)
2.76
Greater Dandenong (C)
2.72
Yarra Ranges (S)
2.72
Monash (C)
2.63
Boroondara (C)
2.54
Banyule (C)
2.53
Maroondah (C)
2.52
Hobsons Bay (C)
2.50
Whitehorse (C)
2.50
Bayside (C)
2.49
Frankston (C)
2.47
Kingston (C)
2.45
Moonee Valley (C)
2.43
Moreland (C)
2.40
Darebin (C)
2.39
Mornington Peninsula (S)
2.38
Glen Eira (C)
2.37
Maribyrnong (C)
2.37
Stonnington (C)
2.13
Yarra (C)
2.11
Melbourne (C)
1.90
Port Phillip (C)
1.87

Occupancy Rate

* To calculate occupancy rate, divide Occupied Private Dwellings (OPD) by Structural Private Dwellings (SPD)

** The total for the Shire of Yarra Ranges does not include data for the Statistical Local Area (SLA) of "Yarra Ranges (S) - Pt B", as this lies outside the Melbourne Statistical Division

The occupancy rate of each LGA is not projeced to change over the next 20 years:

Year to June 30th 2009

Knox (C)
0.98
Nillumbik (S)
0.98
Whittlesea (C)
0.98
Manningham (C)
0.98
Casey (C)
0.97
Monash (C)
0.97
Banyule (C)
0.97
Hume (C)
0.97
Maroondah (C)
0.97
Whitehorse (C)
0.97
Greater Dandenong (C)
0.97
Kingston (C)
0.96
Boroondara (C)
0.96
Yarra Ranges (S)
0.96
Frankston (C)
0.96
Cardinia (S)
0.96
Brimbank (C)
0.96
Glen Eira (C)
0.96
Darebin (C)
0.95
Hobsons Bay (C)
0.95
Moreland (C)
0.95
Moonee Valley (C)
0.95
Maribyrnong (C)
0.95
Wyndham (C)
0.95
Bayside (C)
0.95
Melton (S)
0.95
Yarra (C)
0.94
Stonnington (C)
0.94
Port Phillip (C)
0.92
Melbourne (C)
0.88
Mornington Peninsula (S)
0.76

reblocking, releveling and underpinning

source: http://www.betterfoundations.com.au/
Contact Details
Ph: (03) 9304 4844 Mob: 0409 180 821 Fax: (03) 9354 6870

Reblocking

Re-blocking means the replacement of rotted and defected stumps which causes structural damage to a new concrete or red gum stumps this will involve the re-levelling of the house.
Re-blocking is needed when:

Cracks on the plaster
Doors and windows are stuck
Floors sloping
Cracks in the floor or tiles

Re-levelling and extra stumps

Because of extreme weather and poor soil condition or plumbing leaks some of the houses with a concrete stumps needed re-levelling or extra stumps to support the structure of the house If any signs of

Cracks on plaster,
doors and windows are stuck,
floor sloping or not level.
Do not paint or renovate until the house is supported with extra stumps or re-levelled…..

Definitions of underpinning

Underpinning is a means of transferring foundation loads to deeper soil supported by new concrete pad to provide vertical support that is not present in the existing footing.

Causes and signs of foundation failure:

Foundation damage tends to happen very slowly, so its often difficult to notice it.Moisture beneath the center of your foundation remains consistent unless aggravated by the introduction of excess moisture, such as plumbing leaks or sub-surface water movement. As evaporation and transpiration cause the soils to dry and shrink around the perimeter of your foundation, the structure begins to move. Uneven moisture causes uneven movement, which can lead to structural and cosmetic damage to your home.

Evaporation - hot dry wind and intense heat will often cause the soil to shrink beneath the foundation. This settlement may cause cracks to appear throughout the structure.

Transpiration – Tree roots may desiccate the soil beneath a home causing the soil to shrink and the home to settle.

Plumbing Leaks – Water from plumbing leaks is often a cause of foundation repair.

Drainage – Improper drainage is a leading cause of foundation failure. Excess moisture will erode or consolidate soils and cause settlement.

Inferior Foundation Construction – Insufficient steel and inferior concrete will contribute to movement on the slabs of perimeter foundations.

Poor Soil Conditions – Poor soil and its expansion and/or contraction contribute to foundation failure.

Extreme Weather – Hot, dry weather and cool, wet weather cause soil to expand and contract unevenly causing differential foundation movement.

Signs of foundation problems:

Signs on the inside of the home

Misaligned doors and windows
Cracks in the plaster
Doors and windows that stick
Sloping of the floor
Cracks in the floor or tile

Signs on the outside of the home

Cracks in the brick
Gaps around the doors and windows
Cracks in the foundation
Fascial board pulling away

Signs in the garage

Separation from door
Wall rotating outward
Cracked Brick
Signs in the basement
Walls leaning in or out
Cracks in the wall
Water intrusion

Foundation maintenance

Homeowners can take active steps to maintain their foundations. Typically these include watering the foundation to keep the soil near the foundation (uniform) moist.Changes in the grading around the house such as fencing or planting beds immediately diagnose and repair any plumbing leaks.After all when the house needs the foundation repair, the homeowner should consider the risk that something worse might happen and the loss of resale value in the home because this is a complex and sometimes emotional issue with every day trade-off between budget and the new cracks on the plaster or brick wall.

Underpinning Process

A site inspection of the property is required to investigate the damage; a detailed quotation will be given explaining the cost involved for each pin. If the owner would like to go ahead with the quotation, they are required to sign a contract which will be sent out for signing.Our engineer will inspect the site to determine the amount of pins required and to draw the plan explaining the depth and the positions of the pins.Once we receive the plan, our underpinning team will set out to prepare the property for the work to commence. During this process, concrete, doors, fence etc may need to be removed.

Once the area is prepared, the holes for the pins will be cleaned out for council inspection.After the inspection, the concrete is placed in to the pin holes leaving enough space for jacking, the concrete needs approximately three to four days to cure. Once the concrete is fully cured, our underpinning team will return to the site to attempt to jack the building back to the original level. After this procedure, the concrete will be placed in to the pin holes. Our team will ensure that no gap exists between the underpinning concrete and the existing concrete footing.

subdivision

source: http://www.abodedac.com.au


Subdivision

Before a subdivision permit may be obtained, a town planning permit must be approved. However in some cases /councils this is the same thing.

Once a town planning permit has been approved, this subdivision is a formality. The town planning permit was the concept – the subdivision permit is the details.

The main objection of a subdivision permit is the issue of multiple titles at the end of it. To do this, a number of letters of consent/compliance must be met by local authorities/boards. Once all of these have been met, council will issue a statement of compliance which is handed to the titles office for issue of titles.

The bulk of the independent work is performed by a land surveyor. They will draw up the required subdivision (i.e., proposed new title boundaries, dimensions, easements etc) as per the approved town planning permit and its conditions. Along with this, a schedule of body corporate if required will also be submitted.

Once received and approved in principal, council forward the proposed subdivision to all the local authorities for their response / letter of consent. Firstly they will determine whether they are happy with the planned subdivision, then determine whether increase in the infrastructure is necessary to accommodate this. Generally a once-off fee (acceptance fee) is payable, then a letter of consent is issued. These change per size and location of the subdivision, the authorities concerned are
1. Power
2. Waterboard (water/sewer
3. Telstr
4. Cas

For larger scale subdivision, a civil engineer will be engaged to design
1. Storm water
2. Sewer
3. Water reticulation
4. Roads, internal access ways incuding finished ground levels

A subdivision permit/grant of titles can be a lengthy process. Please be aware that you MAY build multiple dwellings BEFORE multiple titles are issued. This ensures long delays are masked while construction is taking place.

Subdivisions vary immensely – so please contact us direct for direction with your project. No set fees exist for this service, so a proposal will be tailored to your needs.

Feasibility Studies & Subdivisions Services

Yellow Page search result

Peter Mulcahy and Associates Pty Ltd (surveyor)
1/62 Wellington Parade, East Melbourne, VIC, 3002
(03) 9415 1192

1. Wayne B Thomas (contact: Tim George)
Subdivisions, Feature Surveys, Title Re- Establishment, Town Planning
3407 Warburton Hwy Warburton VIC 3799
ph: (03) 5966 9966

2.A.P.T. Design, Drafting & Construction Pty Ltd
We Provide A Full Service From Planning, Design, Drafting To Building
7 Somers Pde Altona VIC 3018
ph: (03) 9398 3277

3.Abode Design & Construct

Individual Design. Wholesale Construction. Instant Online Quotes.
Complete Package! Town planning to full construction.
PO Box 1210 Niddrie VIC 3042
ph: 1300 737 646
http://www.abodedac.com.au/
FREE - NO OBLIGATION QUOTES AND SITE INSPECTIONS.


4. Land Use Town Planning Service
Your Complete Planning & Development Service: First Consultation Free!
Suite 2, 1386 Toorak Rd Camberwell VIC 3124
ph: (03) 9889 3618

5.Keen Planning Services
Proven Approach & Success Rate. Permits, Appeals, Mediation, Rezoning
Suite 1 245 Bay St Brighton VIC 3186
ph: (03) 9596 9000

6.Acorn Planning

Bentleigh East VIC 3165
ph: (03) 8685 8255
http://www.acornplanning.com.au/

7. Wakefield Planning
PO Box 5450 Mordialloc VIC 3195
ph: (03) 9588 1998

Ways to bag a bargain

Source:　Your Property Investment
http://www.realestate.com.au/doc/Resources/Invest/property-investment-bargains

Your next property purchase could be a steal if you adopt the right approach and get ready to take a shot when it raises its head. We looks at ways to sniff out a great buy.

Markets are all about supply and demand, and a property’s value is a fixed figure reflecting a balance of both. Right? Well, mostly yes, but there are ways to push your advantage so that you end up paying less than you may have expected and land a great buy that will fill out your portfolio plus provide plenty of opportunities for dinner party gloating at your next social engagement. The key is to get smart, get ready and back your judgment.
We’ve found a few ways to help you look back on your next purchase with smug self-satisfaction.

1- Look for an eager vendor

A vendor under distress is the most obvious component of a cheap purchase. There is no moral high ground here – often it’s a case that the seller needs a quick disposal and is willing to cut back on the price in order to move the bricks and mortar on.
While it isn’t pleasant to see another party in a sticky situation, you may be doing them a favour by relieving them of the property and, in most circumstances, it’s a business transaction where if you don’t someone else will.
Ben Anderssen is the director of Brisbane-based buyer’s agency Property Chase and is on constant lookout for property bargains for his clients. He often finds his best source of information to be the seller’s own representative.
“If you quiz the agent you’ll get to the point where they’ll start telling you perhaps a bit extra... And you can’t forget that agents, despite everything else, are there to do a deal. You’ll be able to tell pretty quickly whether or not they’re in a hurry to sell,” says Anderssen.
Some eager vendor situations:

The vendor has bought elsewhere
Gun-shy buyers will contract on one home before selling their current abode and will include a ‘subject to sale’ clause in the dealings. As settlement draws near, they become eager to dispose of their old property and now is the time for you to leap. Drive hard on the bargain – particularly when you’re armed with a cash contract free of conditions.
“I spoke to an agent the other day and he said: ‘It’s a young couple that owns this property and they’ve bought another house and have bridging finance.’ And I just thought: ‘Oh, my god, this is perfect,’” recalls Anderssen.


Divorce settlement
No one enjoys seeing these situations come to a head, but the end of a relationship is often punctuated by cutting ties and the settling of assets. Even where the separation is amicable, there is often an eagerness to move on and this means disposing of assets at a quick sale price. The effect can be amplified in acrimonious endings where both parties are eager to sever ties as quickly as possible.

Mortgagee sale
Costs of living pressures, interest rate rises, spiralling petrol prices – these are all catch phrases that have put further stress on those trying to service a mortgage and keep their head above water. Unfortunately, an overextended buyer may receive an unwanted knock on the door from the financier looking to recoup their loan.
Watching for a ‘Mortgagee in Possession’ sale is one strategy, and another is to seek out an owner trying to consolidate their assets and settle their loan.

Deceased estate
In the situation where property is willed to the next of kin, there may be many recipients to consider. While this is sometimes a sticking point, it’s common for family members to agree that a quick disposal of the property will help put the estate to rest.
Another consideration when multiple beneficiaries are involved is that the value of their share becomes diluted, so any reduction in the offer can appear minor. For example, a $500,000 home divided between four siblings will reap $125,000 per share. If a cash unconditional offer of $460,000 is forwarded, a $40,000 saving to the buyer means each sibling now gets $115,000 – not too dramatic a fall in the scheme of negotiations.

2 - Get smart

Forearmed is forewarned. When a bargain arrives, the first buyer to spot it will be the victor, so if you don’t recognise the opportunity when it arrives, someone else will run off with it.
My first purchase occurred in inner Brisbane in 2003. After months of researching the market, I was sure a dated two-bedroom unit with lock-up car accommodation could be located for under $180,000. Despite the agent’s reservations about such an animal existing, I received a phone call from one local realtor informing me that something had come onto the market “just yesterday”.
He first called the out-of-town lady at the top of his possible purchaser list who was keen to find a Brisbane base for her student daughter, but she had baulked at the $145,000 asking price.
Within three hours we’d arranged to meet at the unit and, armed with an intimate knowledge of the market, I suggested he bring around a standard contract of sale at the asking figure. The contract was signed on the kitchen bench within the first half hour of the inspection.

The body corporate manager told me later that the Gladstone-based couple who sold it was delighted to get $145,000 for it. My response was: “That’s great because I was delighted to pay $145,000 for it.” After $30,000 worth of renovations, the unit was worth approximately $210,000 and now five years later is around the $340,000 mark.
Know your market. Set your criteria on what you want and get informed. If you know that your next investment is to be a four-bedroom, two-bathroom, double-garage renter in outer Melbourne, get real about what they sell and rent for. Dig, dig, dig so you become the local expert.

When the right property comes along, you might be surprised to find that both the vendor and your competing buyers have scant idea as to what a great deal a property offers.

3 - Be prepared

By taking care of a few of the basics, you can remove uncertainties and move quickly.
Arrange your finance before you start hunting your prey. Know how much you can afford to borrow and get it organised. Now is the time to shop around for finance, not when your unconditional day of reckoning is imminent.
Also, go through the exercise to work out what sort of rental you need to achieve on your property to help service the loan.
This is an important step that can stop a prospective buyer in their tracks if they haven’t taken the time to consider the return on the investment.
Form a relationship with professionals whose help you’ll need when snapping up a deal.
Most valuers will be happy to discuss their general expertise and what they look for in a property, and can stand at the ready to provide their services quick-smart when they know you’re likely to call.
Similarly, have the phone number of your trusted pest and building inspector handy so they can provide a ready-to-go service when you come up with a possible winner.
By making their acquaintance early, you can get some pre-purchase heads-up on possible pitfalls that might surround your sale of the century.

4 - Look for the angles

Bargains aren’t always obvious and you must dust off a little dirt to find the gold seam. Try thinking outside everyone else’s square to see if you can make a go of a property possibility.
For example, one agent in a near-university suburb has built a formidable self-funding rental portfolio by identifying homes where additional bedrooms can be created for leasing on a per room basis to the student market.
It’s also worth considering whether a property holds a value to you over and above the local market. Perhaps by purchasing your neighbour’s home you may suddenly find yourself with a potential development site ripe for rezoning to units. And all for not much more than the cost of a standard residential dwelling.
Bargains may also be had by considering other angles for savings. Purchasing a home from a family member or buying the property you currently rent may circumnavigate the need for agents, thus saving on commission. In the latter case, you may also come to an arrangement where you’re compensated for upgrades you’ve carried out on the property yourself.

5 - Stick with the basics

Bargains aren’t bargains if things go sour easily.
Avoid main roads and adjacent rail lines. These things don’t sell in a soft market.
The rule is: a window of opportunity comes around to sell a dud property about once every seven years, so avoid them like a biblical plague.