Recent content by Serendipitous

I would probably retire now if I can do developments without the cash flow. I'm not relying on my income to live however my income is pretty much my license to borrow. I wonder if there's a way to either borrow money without an income or perhaps buying an automated business that generates...

Thanks Paul and Terry, this is good insight.

Holding and also acquiring passive investment/development properties

Yeah, I would think it is reasonable to deduct portion of these costs as the trust office operating cost which links to income generating activity for the trust. Just wondering what you guys think and if this is a legit deduction. What do you think Aaron?

I'm currently renting so I guess it's doesn't have the CGT implication...

Hi All, My house is the registered office of the trustee company, i.e. I use part of my home as the trust's office. If my trust is generating rental income, is it possible to deduct part of the rent/electricity/internet bills from the income? This is because a portion of these costs are being...

Hi all, How much extra does clay come into play for site work and engineering cost? Is there a rough per sqm guide? The site is 2000+sqm big and I'm planning to put 1000sqm floor space of units on it (about 14-16 units). In addition, the site currently has no sewage, and it is about 200m...

Hi Brady, The valuer valued it as 950k. I have personally done a couple of these myself. No money down to build due to the high completion value. Just not sure what other banks do it apart from ANZ in the Pilbara. Regards S Regard

This is interesting because ANZ used to (probably still do) 80% lending to completion value in the Pilbara due to the completion values are usually significantly higher than the construction costs. For example, if land costs 300k, build costs 450k, with completion value of 950k, you only...

Thanks Aaron. What if the completion value returns high? Which lenders would lend against the completion value instead of the construction cost assuming it's a residential development? Thanks.

If it's a resi development, what lenders would lend towards 80% of the completion value? (instead of 80% of construction cost?) This will significantly reduce the upfront capital requirement If the completion value is very high, 80% of the end value may not require additional deposit to build.

Would the bank ever lend the entire build cost if the build cost is less than 80% of the completion value?

This thread is like an Iron Ore Trading thread rather than about property market economics :rolleyes:

Someone from an iron ore town! Port Hedland market has slow down a bit isn't it?

Thanks Terry! I guess these cases are all quite "tricky" and I will need to get another accountant to go over them. I would be interested in what Julia from BAN TAC would say about these cases =)