Changing BA vs Waiting (and hoping) - your advice needed

Background info -

In November 2014 I signed up with a BA in Brisbane. After supplying them with my own financial 'stuff', they were pretty confident that a property would be found that would tick the investment property 'boxes' (ie. location for good possible future capital growth, rental yield, serviceable debt etc). I was convinced that a dual living arrangement was the way to go for an IP - two lots of rent from the one property (great if one sits empty for awhile).

After rearranging my finances (to put me in a better position to borrow) etc, a property was located on Brisbane's north side that looked like it would work (but, even with pre-approval before making the offer, the contract failed based on finance). It was a dual occupancy - which, after reading a thread in here a few days ago - I've now found out is not allowed in Brisbane.

All the properties that this BA recommends (and seems to specialise in) are dual occupancy (ie. one house, where the upstairs and downstairs are separately rented - a big 'no-no', I now know, in BCC), or splitters, duplex construction etc (which my finances definitely won't extend to). They are now looking at Sunshine Coast options (again, dual living options only) - which are apparently allowed up there - and I'm not sure if it's because I've started asking questions about the dual living regulations in Brisbane, or I just can't afford something local (I'm looking at borrowing around $650K).

Fast forward - It's now August 2015, and I still don't have an IP.

Am I being impatient? Should I have something by now? I have a funny feeling that, if I was considering a non-dual occupancy, I'd have an IP by now (especially if I'd gone with another BA). Now I'm worried that I may not be able to enter the market due to rising property prices in Brisbane.

Basically - should I continue waiting for an IP to pop up, based on a possibly faulty investment strategy, with my current BA, or should I jump ship to another BA, and finally get my investing feet wet? (And before anyone makes the suggestion - no, I wouldn't consider buying an IP without a BA, especially first time around….. )

 

Its time to change... seems like they don't know what they are doing.

The upstairs / downstairs scenarios are probably not even legal height, let alone doing it in BCC.

Why continue down this risky path. How much did you pay them upfront? There would be a case for asking for that fee back in any case....if they have any integrity they will return it to you..

I don't think you've missed the boat by any means......its time to change its course though.

 

Thanks, Chris.

I've only paid a $1000 engagement fee (the rest of the money would be payable upon settlement of a property purchase). While it may not have been a pleasant way to lose $1000, I'd rather that than the issues and legal ramifications of a possible future BCC 'shut down' of the property, which I'm sure would end up costing me a lot more than $1000 to deal with.

A change of course is looking like a good option, I think…….. (sometimes, we've just got to listen to our gut instinct, huh?).

 

Why wouldn't your finance allow for splitters or duplex construction?

 

I don't have enough equity, or income, to borrow a bucketload of $$$ (and to buy/build a duplex/splitter etc would cost a lot more than what the lenders will give me). So, I'm thinking that I have to buy a 'single' rental (unit, townhouse, or freestanding house).

 

It sounds like losing a thousand bucks now will be the cheapest option in the long run!

 

@KayTea

You can always drip feed property development projects as it suits you.

You can buy potential development site, rent existing house, get relevant plans drawn up and approved.

That alone can take 6-12 months!

Revalue/refinance/loc/own money may be used to fund deposit for build.

We have done it few times! Not that hard...

 

Thanks Be, but there are different types of 'hard'. I currently work a 50-hour week, and am a single parent - so I can't imagine having the time to manage what you are suggesting. That's one of the reasons I went with a BA in the first place. Plus, I don't think I'd have enough $$$ available to buy a site, then to also fund the development on that site - it sounds like mega-bucks (again, only one income at my place to use for loan calcs etc).

But if I'm not seeing/knowing something that I should, that you think could change my perspective, I'm open to suggestions.

Thanks again,
KayTea

 

You can outsource the whole thing.

I know few Sydney Developers went down that road.

But it comes down to $$$$.best to speak to Broker who has plenty knowledge in property development and take it from there on.

 

Also feel free to speak to some expirenced BA in property development or adding value sites.

Karen at property zest is good..I hear good things abt her.

No harm in picking brain of few experts in industry!

 

Outsource the whole thing eh? I'm gonna pick your brain on that one bedeveloper. It's the only way my wife is going to let me proceed!

 

Out source the whole thing and learn along the way..i should have said

Next one then can be on auto pilot!!!

 

+1 for Karen Young. She is ethical and has excellent business systems.