IP #4 added to my portfolio.

[triton07]

Ozperp, sorry for the late reply, the 5 years gives me time to prepare a plan & also the proposed rezoning should take place within the 5 years, I hope it does.

Also in 5 years time I believe the market will start to pickup & hopefully be in the boom stage, so that gives me a lot more options; sell each townhouse of the plan; sell each townhouse when construction completed; or sell project to developers.

My plan is to build & not to sell, but I would like to have these other options available in plan, as a risk plan. Got nothing to do with the cash flow at the moment because my whole portfolio is already CF+, but it’s more to do with the market timing.

Cheers
George

Sounds like a ripper, George, well done. So the cashflow improving in 5 years - is that necessary to fund the loan for townhouse construction, or because you want to hold all 5 after construction and they may be negatively geared?

If it's the former, and you want to build sooner other than because of affordability issues, I should think if you plan to sell one or more off that you should be able to access gross realisation funding, ie development funding on the basis of the end value. Given that the lender's primary assurance of being paid is the end value, your income generally bears little relevance to being approved; it's more about whether there's profit in the deal.

Sorry if I'm telling you to suck eggs.