wombat777 here

Discussion in 'Introductions' started by wombat777, 20th Jun, 2015.

Join Australia's most dynamic and respected property investment community
  1. RetireRich101

    RetireRich101 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,149
    Location:
    Sydney
    You should really spent it all, don't worry about the mortgage :p
     
  2. wombat777

    wombat777 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,565
    Location:
    On a Capital and Income Growth Safari
    Met with my broker this morning. Serviceability is good for proceeding to my 2nd and 3rd IPs, despite the APRA changes. Will do an equity release from my PPOR first and then go for IP 2 by the end of the year and IP 3 commencing April/May 2016. I may be able to do IP 4 in late 2016 ( provided I keep the portfolio CF+ ).

    He thinks that some of the banks will wind back on some of the investment restrictions in 2 to 3 months time.
     
    Sackie likes this.
  3. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    1,648
    Location:
    Sydney
    In 2-3 months the APRA changes are going to tighter than they are now. Next stop is target on equity releases.

    APRA changes will not change whilst rates are so low.
     
  4. wombat777

    wombat777 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,565
    Location:
    On a Capital and Income Growth Safari
    Valuation for my PPOR just came in at $210k greater than the last valuation which was done in April :)
     
    Sackie and ellejay like this.
  5. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    1,648
    Location:
    Sydney
    You know what that means right?....... SHOPPING TIME :)
     
    wombat777 likes this.
  6. wombat777

    wombat777 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,565
    Location:
    On a Capital and Income Growth Safari
    A disappointing update. Even though according to my broker my serviceability was good for 2 more purchases, the APRA changes have severely restricted the amount that I can borrow.

    Even though I am sitting at around 70% LVR across my PPOR and IP 1, I was unable to extract equity from my Suncorp PPOR loan. I was expecting to be able to extract around $178k.

    Nevertheless I still have cash in offset for deposits, however just found out this morning I am unable to obtain finance for IP2 ( well severely limited at a loan down to $78k ). This is with a strong income and strong employment history.

    This is going to get quite boring :-\

    I might try again in around 8 months time after I finish planned travel.
     
  7. RetireRich101

    RetireRich101 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,149
    Location:
    Sydney
    yes quiet disappointing when its your money that you can cash out yesterday and not today.

    for PC members here you might seeing my activity in the Lounge and Sports, then Where to Buy section.
     
  8. wombat777

    wombat777 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,565
    Location:
    On a Capital and Income Growth Safari
    May look at paying my novated lease early ( in 6 months time ) so that I can proceed.
     
  9. wombat777

    wombat777 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,565
    Location:
    On a Capital and Income Growth Safari
    Contract is now unconditional on my second IP. This is a nicely located site, a few minutes walk from the rail link in one of the MBRC Urban Zones.

    Another +1 for the great work of @Kaz Young and her team at Property Zest.

    Having someone on the ground in Brisbane mid-week was critical to this purchase, allowing inspection and negotiation after the property popped back on market ( finance crashed ). Other buyers were circling.

    Now have two MBRC properties both suitable for future unit blocks or townhouses. One is zoned for 21m high with a gross floor area in the 1450 sqm range. The other is zoned for 27m high with a gross floor area in the 1300 sqm range. The potential of both properties has been confirmed by a town planner.
     
    Sackie, House, Property Twins and 3 others like this.
  10. RetireRich101

    RetireRich101 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,149
    Location:
    Sydney
    great stuff.. how big is your land? can your land be developed on it's own? are you saving up to buy your neighbour out? :p
     
  11. wombat777

    wombat777 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,565
    Location:
    On a Capital and Income Growth Safari
    Both sites can be developed on their own.

    One site is approx 600sqm. The other is < 500sqm.

    A town planning assessment was done for my first site a few months ago. A quick e-mail check was sufficient for my second property, however I have now initiated an assessment.
     
    Sackie and RetireRich101 like this.
  12. RetireRich101

    RetireRich101 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,149
    Location:
    Sydney
    interested in what is the best use for the properties in terms of development. I thought you need at least 800m2 with a massive frontage but what would I know about mbrc council....
     
  13. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

    Joined:
    31st May, 2016
    Posts:
    2,738
    Location:
    Australia
    Interested to know more @wombat777 . Same as RR, thought you needed much more..

    Yours is Urban block right?
     
  14. wombat777

    wombat777 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,565
    Location:
    On a Capital and Income Growth Safari
    Both are good capital-growth plays for buy+hold and cashflow positive. Whilst they brew will spend some time on feaso calcs in order to decide what to do next. A number of plays possible.

    I'm now very much a keen watcher of the impact the rail link and other investment has on the area.
     
  15. wombat777

    wombat777 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,565
    Location:
    On a Capital and Income Growth Safari
    Yes, both are Urban zone which makes a big difference for suitability for low to medium-rise. Heights in the next-gen zones are much more restrictive.

    Not MBRC but this site in Nundah is a good example of what can be done on a 607sqm site. This one is a 16m frontage.

    IMG_0336.jpg

    5 York Street Nundah, Qld 4012

    It appears as though the MBRC residential design guidelines are just that, guidelines ( and not hard and fast rules ). I am guessing the block sizes in the newer transition zones in MBRC will be developed more in accordance with these guidelines. It is the much more detailed planning codes that are the important consideration.
     
  16. RetireRich101

    RetireRich101 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,149
    Location:
    Sydney
    Yes you can do this do MUD in BCC that is small as 600m2
    The Nundah site is MDR site in BCC, which is equivalent to a UN site in MBRC but required a bigger lot. But your discussion might come up with something clever you never know.
     
  17. wombat777

    wombat777 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,565
    Location:
    On a Capital and Income Growth Safari
    Yes, yet to get anywhere near formal plans but town planner did not indicate any issue with doing a Unit Block on a site < 500sqm.
    It would get very difficult with parking if a frontage is under 14m, the wider you can get the better.

    For my DB site with the help of the town planner calling council, suitability for a basement car park was confirmed and that block has marginal storm-tide impact.
     
  18. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    24,995
    Location:
    Vaucluse, Sydney.
    @wombat777 great stuff mate you're on fire!

    Next stop, development central! :cool:
     
    wombat777 likes this.
  19. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,386
    Location:
    Sydney
    Wombat awesome news! Tell me more at next meet up. Bought well.
     
    wombat777 likes this.
  20. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,091
    Location:
    Brisbane
    Congratulations, sounds like a good spot.
    Now if they ever get the new rail line opened it will be a bonus ;)
     

Price Accounting provide investor + developer tax services world and Australia wide for your property and all tax issues. Contact Paul@PFI below for our new client pack and quoted pricing + client portal access. Trusts, Co and SMSF are our specialty.