Subdivision is a great way to wealth creation. So how do you get started?
Property investor Rod McShane suggests: “The smaller the subdivision, generally the less risk. A house on a large block suitable for two dwellings may be the ideal first time subdivision.
“Consideration then has to be given as to whether you’re building a second dwelling to keep the property long term or to sell it off and place the money back into debt reduction of an existing mortgage.”
Many property commentators recommend developing a property to create positive cash flow to assist in reducing debt on existing loans or even purchasing further property for your portfolio.
One investor, Martin Ayles, discovered property development by accident. He had been renovating and selling for many years when an opportunity arose for him to subdivide an allotment with an existing house.
When a profit resulted, he realised what he’d been overlooking and has been hooked on subdividing ever since.
“Subdivision is an extremely powerful method of dividing to multiply your profits, however, if you sell everything, money’s easily spent. I recommend a ratio of about five to one, so for every five that you build, retain a minimum of one,” he advises.
“I’d also suggest trying to get the properties generating cash flow rather than having them negatively geared.” That way you could develop five properties and keep one to pay your profits into, reducing debt down so the weekly rent could more than cover the mortgage.
If you have a question about real estate, or would like assistance in locating a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Browns Plains 3800 4000, Marsden 3200 4495, Springwood 3808 5544 or Waterford 3299 7733.
Thursday, February 18, 2010
New Business At Waterford Village Shops
We now have a Chinese food shop in residence - MY Noodle Bar.
They are situated in the same centre as our Professionals Marsden office - Shop 7, 42 - 48 Bourke St, Waterford Village.
We also provided accommodation for the shop manager in one of our rentals - great synergy.
They are situated in the same centre as our Professionals Marsden office - Shop 7, 42 - 48 Bourke St, Waterford Village.
We also provided accommodation for the shop manager in one of our rentals - great synergy.
Monday, February 15, 2010
Is Subdivision the Wave of the Future?
Nationwide State Governments have been considering blueprints for future urban growth within their capital cities, suburbs and country towns. The reasons include not only population growth but also a predicted increase in numbers of the aged and single person households.
One person championing this type of planning is Harley Dale of the Housing Industry Association. He views property development as “a topical thing to be looking at, in the sense that you would expect subdivisions are going to become more prevalent in the future and it’s an aspect of housing that’s going to increase over time.”
“The two primary reasons for that are what’s going on with growth boundaries in cities and density requirements for housing.” In many areas now you have “significant land constraints, which in turn will channel more people down the route of subdividing in terms of property investment,” Dale adds.
He continues saying: “We’re probably going to see this as a more viable investment option, simply because there’s been a massive increase in the price of land in recent times. This has been particularly occurring on the fringes of capital cities.” This trend could direct people’s thinking more towards subdivision as opposed to developing a new block.
He concludes: “People looking to invest in property are going to see an incentive there to supply the market, but within constraints that might promote more subdividing than we’ve seen in previous cycles.”
If you have a question about real estate, or would like assistance in locating a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Browns Plains 3800 4000, Marsden 3200 4495, Springwood 3808 5544 or Waterford 3299 7733.
One person championing this type of planning is Harley Dale of the Housing Industry Association. He views property development as “a topical thing to be looking at, in the sense that you would expect subdivisions are going to become more prevalent in the future and it’s an aspect of housing that’s going to increase over time.”
“The two primary reasons for that are what’s going on with growth boundaries in cities and density requirements for housing.” In many areas now you have “significant land constraints, which in turn will channel more people down the route of subdividing in terms of property investment,” Dale adds.
He continues saying: “We’re probably going to see this as a more viable investment option, simply because there’s been a massive increase in the price of land in recent times. This has been particularly occurring on the fringes of capital cities.” This trend could direct people’s thinking more towards subdivision as opposed to developing a new block.
He concludes: “People looking to invest in property are going to see an incentive there to supply the market, but within constraints that might promote more subdividing than we’ve seen in previous cycles.”
If you have a question about real estate, or would like assistance in locating a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Browns Plains 3800 4000, Marsden 3200 4495, Springwood 3808 5544 or Waterford 3299 7733.
Friday, February 12, 2010
Property Seminar
* INVESTORS
* FIRST HOME OWNERS
* How to qualify for $$$...
* RE FINANCING
Westpac Business Banking Centre
Level 2, 3950-3952 Pacific Highway
LOGANHOLME QLD 4129
6pm sharp Tuesday March 23rd 2010
LIMITED PLACES AVAILABLE: Please confirm your attendance at Westpac Logan Central or any Professionals Logan Lifestyles office
How to Attract a Long-term Tenant
If you own an investment rental property and want a long-term tenant, then you have to put yourselves in their shoes. Tenants are like owner occupiers. While struggling to match the current rental prices, they expect value for their money. So you need to offer appropriate benefits.
Here’s a list of tenant desirables:
* A clean, tidy and well-maintained property. The tenant needs to feel that the landlord will attend to any repairs or maintenance issues and is willing to spend money on their investment property.
* A good location. Just like owner-occupiers, tenants seek closeness to essential services to meet their lifestyle choices. Nearby shops, schools, transport and leisure facilities all count and are highly sought after.
* Storage space. Tenants like plenty of storage and cupboard space. Everyone has personal items and plenty of possessions that need a space. This includes a safe place to park the car!
* Little luxuries. Tenants all look for dishwashers, air conditioning and good heating. These appliances are at the top of their list.
* New renovations. Tenants like fresh paint and new carpeting. They also like a fresh, airy feeling with plenty of light and will pay that little extra to feel comfortable.
These amenities can separate your property from a similar one in the area. Hence, it will have broader tenant appeal and can command a higher price than
similar properties lacking these attributes.
If you have a question about real estate, or would like assistance in locating a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Browns Plains 3800 4000, Marsden 3200 4495, Springwood 3808 5544 or Waterford 3299 7733.
Here’s a list of tenant desirables:
* A clean, tidy and well-maintained property. The tenant needs to feel that the landlord will attend to any repairs or maintenance issues and is willing to spend money on their investment property.
* A good location. Just like owner-occupiers, tenants seek closeness to essential services to meet their lifestyle choices. Nearby shops, schools, transport and leisure facilities all count and are highly sought after.
* Storage space. Tenants like plenty of storage and cupboard space. Everyone has personal items and plenty of possessions that need a space. This includes a safe place to park the car!
* Little luxuries. Tenants all look for dishwashers, air conditioning and good heating. These appliances are at the top of their list.
* New renovations. Tenants like fresh paint and new carpeting. They also like a fresh, airy feeling with plenty of light and will pay that little extra to feel comfortable.
These amenities can separate your property from a similar one in the area. Hence, it will have broader tenant appeal and can command a higher price than
similar properties lacking these attributes.
If you have a question about real estate, or would like assistance in locating a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Browns Plains 3800 4000, Marsden 3200 4495, Springwood 3808 5544 or Waterford 3299 7733.
Monday, February 1, 2010
Building Inspections Bring Peace of Mind
Buying a property is often very emotional. You see something you like and the impulse is to buy it. But it’s what you don’t see that necessitates a building and pest inspection before buying.
Getting a building inspection done lets you know that the property is structurally sound. It also tells you about rising damp in the walls and if the wiring is up to standard. It will also tell you the condition of the roof. All these things are not normally known upon one’s own visual inspection.
Even new properties and renovated ones need inspecting.
Peter Georgiev, an architect who inspects for Archicentre, delineates the three most common types of inspections.
“There’s the investor who wants to have some knowledge that the property is not going to cost them a fortune….Then there’s the purchaser who is looking at something to renovate and they really want a position statement as to whether the property has reasonable bones for renovation…and there are those people who think they’ve got a property that they can move straight into and they want an assurance that the place is not going to cost them a lot of money in the short term,” he comments.
“Having a property inspection done is a small price to pay for the peace of mind it brings”
If you have a question about real estate, or would like assistance in locating a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Browns Plains 3800 4000, Marsden 3200 4495, Springwood 3808 5544 or Waterford 3299 7733
Getting a building inspection done lets you know that the property is structurally sound. It also tells you about rising damp in the walls and if the wiring is up to standard. It will also tell you the condition of the roof. All these things are not normally known upon one’s own visual inspection.
Even new properties and renovated ones need inspecting.
Peter Georgiev, an architect who inspects for Archicentre, delineates the three most common types of inspections.
“There’s the investor who wants to have some knowledge that the property is not going to cost them a fortune….Then there’s the purchaser who is looking at something to renovate and they really want a position statement as to whether the property has reasonable bones for renovation…and there are those people who think they’ve got a property that they can move straight into and they want an assurance that the place is not going to cost them a lot of money in the short term,” he comments.
“Having a property inspection done is a small price to pay for the peace of mind it brings”
If you have a question about real estate, or would like assistance in locating a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Browns Plains 3800 4000, Marsden 3200 4495, Springwood 3808 5544 or Waterford 3299 7733
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