澳洲Australia property Joint venture or something creative - SA
I'm just curious and thought I'd put this out there to see if anyone is interested. I'm not desperate but this would solve some of our problems.
We have a 1400sqm block of land with a house on it, we're living in the house but it is a shoebox (did I say shoebox? Its actually really nice, there's just too many of us for the house lol) and honestly I'd kill to move ANYWHERE bigger but ... we're stuck. The problem is common enough, too much equity and not enough income.
What I want is to be in a position to put offers on a bigger house subject to the sale of this one - but I can't sell this one as we have a subdivision approval on it and it needs a new roof and I can't afford either one and it makes my stomach crawl selling it as is when there is so much more potential for $ there. So I was wondering if anyone would entertain the notion of pre-purchasing our not-subdivided-yet block next door, so we can actually pay for the bloody subdivion. Otherwise its just a bunch of worthless paperwork we can't lodge.
Figures for the canny investor:
Proposed block of land is loosely 700sqm - 15m wide and 40something metres deep. Basically flat, has a couple of medium sized non-heritage trees to remove, nothing exciting. The subdivision *is* approved, surveyed, and the forms are ready to lodge - this is not just a pie in the sky thing, we waited our token 6 months to get the approval. All we need to do is move a septic tank (a precondition of the subdivision) so it makes the required setbacks and pay the fees. The land, depending on who you ask, is worth approx $45,000. There's plenty of land in the town for sale (and sold) for more than that, but always in the range of $45,000-$70,000. Should you be interested in this, and you're throwing dosh at us upfront, we'd obviously use your nice dosh to lodge the forms and get the tank moved and I'm sure some legal person would make sure the right names appear on the new title.
As to the rest - we've been quoted siteworks as approx $10k for the block by numerous builders, some of whom can organise siteworks, some of whom want you to do it. We've also got some quotes for getting a 3x1 house house built on the block, two of which are about $90,000 plus floor coverings, carport and landscaping (which is not essential here) and the others are just stupidly high so we'll ignore those. So there you could have a house + land, bright and shiny new all ready to depreciate, for about $145,000. Brand new houses seem to rent for low $200s here, so expect minimum rent of $200pw but there's nothing stopping you going higher - its a tight rental market. There are workers staying in the caravan park because there is nothing to rent, and people advertising asking for places to rent instead of the other way around. New house would also be worth loosely $180-200k depending on if you can be bothered with landscaping. Sure, that's only a minimum yield on outlay of 7% but you can push that higher with higher rent and depreciation. Or you could just sell the new build for a small profit. Or you could build a much more expensive house for $150k or more and sell it for $300k, which is not unreasonable. There's options, and you could arrange the entire build from the comfort of ... anywhere!
The location is very nice, street is nice, houses on either side of the proposed block are nice. Town is nice (Jamestown). Townsfolk are nice. Employment is high, town is booming in various different industries not just one - primary employer is agricultural support. There is no centerlink agency here. Squillions of posh new houses being built (don't go look on Google streetview or satellite view, you'll see lots of vacant land - trust me, its not there anymore). Brand new supermarket just opened. This is the town that is causing the death of all the other little towns in the area by sucking everyone else into its happy little vortex of niceness - ie, its the nice growing town everyone is leaving the shrinking towns to move to. So I'm not spruiking some crappy ghost town full of unemployed bogans with 10 kids each here.
Anyway. Just thought I'd throw that out there.
why not sell otp either the land or h&l once you have a deposit and signed contract the bank can do a projected profit loan then you can go get the DA
have done similar actually one of my first was with a projected profit loan and no contract suggest ring bank and find out as long as you can prove that the said block or H&L will sell for xamount of profit should be all fine we done it on low income paid around 10% tax and didn't affect centrelink was in 2004 so things may have changed.
Never heard of projected profit ... the original idea was to build there ourselves, so only $100k to build a brand new place grossing $200+pw which is a lovely yield but I've been told we can't get a loan to build (let alone be able to lodge the building DA) without the subdivision forms lodged. Other half doesn't want to extend the existing loan for the subdivision fees.
Could do it ourselves if and only if I sell my old house, which is sitting on the market happily attracting absolutely no interest but lots of thieves now it has a for sale sign on it. Difficult place to sell, don't expect it to move any time soon ... will gross a mere $55k or less after owning it for 6 years.
If this comes down merely creative *financing* I'd be quite happy, to be honest.
Turns out I had the yeild wrong - $110k to build, $280pw gross - so the real figures are actually *better*.
Anyway we've negotiated progress payment plans with some of the folks involved and have about half of the subdivision paid for now so this thread is moot, it looks like we can do it without anything too creative. I'm out of sole agent contract on my old house today so I'll give it to closer to the end of September and then it gets put on the rental market.