Hi all, It's my first time to JV and still learning so I apologies if I am asking obvious questions. I am reading and researching alot in this forum with its wealth of knowledge contributed by all the gurus and experts in investment!
Could anyone advise me on this JV strategy I have in place. Due to my circumstances I need to do a JV to get a head start in the property ladder.
I wonder if anyone have done some thing similar and what are the pros and cons in doing it.
It's an old neighbourhood of mine and I am planning to do a JV with a mate who owes the property.
It's a 700sq2 land with an existing house at the front. Its in an area in demand and properties in the area have been subdividing with houses sold for min $700k.
The plan initially was to Renovate the front house and my JV partner will keep it as his PPOR. Built a double story detached at the back with good quality finishing and we are looking at built around $350k. And sell the back house for $800k with profit share 50/50 after all expense have been deducted. Plus he gets a Renovated house which was part of the deal if we go ahead.
I have not done any feasibility study yet but just a rough estimation.
This strategy suits our situation as I have the serviceability( no equity) and he has the property to built with equity in it ( but low income). Because my JV partner owns the property, there is no purchase transaction, fees, stamp duty, etc involved for use to put out extra cost.
Can anyone share the pros but mainly the cons on what to be expecting in such JV? I intend to get everything in writing and get lawyers involved so it's iron clad. I remember reading in another forum to set it up as a unit trust so the unit trust can borrow on our behalf, if I understood it that way.
Lastly, for zoning under GRZ1 in Manningham, what is the maximum dwelling for a 700sqm? Can We built a duplex at the rear and strata to two titles? Trying to maximise the potential for this lot.
Thanks again in advance! Am quite excited in doing my first JV but I am a cautious person so any advise would be fantastic!! Cheers
Could anyone advise me on this JV strategy I have in place. Due to my circumstances I need to do a JV to get a head start in the property ladder.
I wonder if anyone have done some thing similar and what are the pros and cons in doing it.
It's an old neighbourhood of mine and I am planning to do a JV with a mate who owes the property.
It's a 700sq2 land with an existing house at the front. Its in an area in demand and properties in the area have been subdividing with houses sold for min $700k.
The plan initially was to Renovate the front house and my JV partner will keep it as his PPOR. Built a double story detached at the back with good quality finishing and we are looking at built around $350k. And sell the back house for $800k with profit share 50/50 after all expense have been deducted. Plus he gets a Renovated house which was part of the deal if we go ahead.
I have not done any feasibility study yet but just a rough estimation.
This strategy suits our situation as I have the serviceability( no equity) and he has the property to built with equity in it ( but low income). Because my JV partner owns the property, there is no purchase transaction, fees, stamp duty, etc involved for use to put out extra cost.
Can anyone share the pros but mainly the cons on what to be expecting in such JV? I intend to get everything in writing and get lawyers involved so it's iron clad. I remember reading in another forum to set it up as a unit trust so the unit trust can borrow on our behalf, if I understood it that way.
Lastly, for zoning under GRZ1 in Manningham, what is the maximum dwelling for a 700sqm? Can We built a duplex at the rear and strata to two titles? Trying to maximise the potential for this lot.
Thanks again in advance! Am quite excited in doing my first JV but I am a cautious person so any advise would be fantastic!! Cheers
