Recent content by JCM

Hi all, I am about to start construction on my first development. It will be a 4 unit site. I would like to start familiarizing myself with an accounting system that will make it easier to keep a track of all my spending, invoices etc. rather than keeping a manual record which is what I am...

Thanks for the Information Provided! Hi Paul, Thanks for the informative response. I guess I was looking for an easy answer, yet as I suspected it is not as clear cut as just dividing the amount of units by purchase price of site. I shall follow up on what you have suggested and get the...

Hi All, I currently have a 4 unit development site for which I have approval and have just put on the market as OTP Sales. A potential buyer asked the agent if they knew "what portion of the overall purchase price to allocate to unit 4's land value?” My initial assumption was that if I...

Hi all, My Civil Engineer has requested that I locate the depth of the Stormwater Pipe in the easement running across the back of my site for which I am currently in the Town Planning process to develop into 4 units. Although the Civil Engineer has all the information from Council on the depth...

Hi All, I have a project that is currently going thru DA Approval. It is a 4 unit site in the S/E suburbs. My aim is to sell them OTP (Off The Plan). All the units are 2 beddas, with my target market being the elderly downsizer and also the investor. I believe that the Selling Process is...

Great Feedback guys! I tend to agree with all. One never knows how a neighbour is going to react, and it may be best to kill the monster while it is small, but notifying them in person early on. This will give an insight as to whether they will be accepting of the development or try and...

Hi all, I am currently going through the Town Planning process to get a DA approval for a 4 unit site in the Eastern Suburbs Melbourne. Council will soon be sending out letters to the immediate neighbours informing them of the proposed development and also place an advert on the site of the...

Hi all, Trust you all had a great Festive Season!! I have completed dual occs in the past, and am now at a stage where I wish to develop larger sites. All the past project's financials I did manually by hand. I now feel I need to use a software accounting package to bring me up to speed...

Not sure of Lender Marty Hi all, The story is that I rang a few online Mortgage Brokers to see what they can offer. Initially I was going to go with a private lender who informed it would be best for me to purchase site cash then borrow for Construction at 10-11% plus upfront fee of 1-2%...

How to source a Mortage Broker that specialises in a certain field? Thanks for the input guys. I guess my next question would be, that with so many brokers out there, how does one go about sorting the wheat from the chaff and find a Mortgage Broker that is very knowledgeable in a certain...

Hi All, I am wanting to know if it is common practise for Brokers to ask for a % upfront commission of the total loan. I am currently looking for a development site to construct 3 units. I left work to pursue this full time. I have $440K in a high interest account and $240K in my PPOR...

Hi Everyone, Just thought I would get Somersofters opinions and experiences on selling OTP vs On Completion. Advantages and disadvantages. I am in the process of purchasing a development site and am trying to work out which method would get the better return. I have always been under the...

Sounds Good So any property that has a mortgage with a bank will have this? Then it would be quite normal to see this on a sec32 under Encumbrances and Covenants. Regards JCM

Hi all, I recently found a development site which fit my criteria and was in the process of doing some due diligence. I had the agent forward the Sec32 on which I found a Mortgage Encumbrance. Can someone elaborate on this and how will it affect the buyer? The property has been on the...

Thanks for replies everyone!! I guess there are many options all depending on each individuals circumstances, and the one that will affect my borrowings is the fact that I will not be able to show income. This means that I will have to pay higher interest rates on my borrowings as traditional...