This is part of a number of sessions of Finance for Pensioners and solutions to the Housing and Rental Crisis
See also Session 28
We are interested in solving the housing crisis in Australia and are in the business of providing Affordable Rental Accommodation.
We will do a Joint venture with anybody that has borrowing capacity. You must have a good income . Any professional with a regular income, engineer, podiatrist, physiotherapist, pilot will qualify
We have included a spreadsheet (Session 28) showing that somebody in the 37cts tax bracket earning $120,000 per year can retire in a year
On 1 block of land we can build one 3-bedroom @ $300,000 and a $180,000 highset 2 x 1 Bedroom for a total borrowed amount ( 100% borrowings) of $480,000 .
This will give an income of $34,588 for a small block of land (See session 28A)
If you have 4 blocks of land, income will be $103,764.
You can also borrow more money against the capital gain of the property. If we assume 4% gain and a 60% loan the return will increase by $11,520 per block.
You can therefore easily double your income or retire for life.
A person in the top tax bracket will have $36,220per block
And at 3 blocks of land you will have $108.660 to retire. You can also borrow 60% of the capital growth of the building (say 4%) which will give you an extra $11,520 x 3 = $34,560 or
A total of $143,220. You may have to build on a 4th block.
In a joint venture we will do all subdivision , DA application and Building permits free of charge
We are looking at blocks of land that can be subdivided into 7 blocks . The subdivided blocks must have a minimum dimension of $450m2 and we can build 1x 3 Bedroom + 1 highset on each of them
The property must have a house on it and probably a minimum size would be 1 acre (4000m2).
Preferably the existing house is in bad state of repair which will make the cost of the property less.
The house must be sold in it’s raw form . We are not interested in repairs of houses.
We are also not interested in selling any of the developed blocks of land unless it is to cover any of the development costs which are tax deductable.
We are also looking for joint ventures in AirBnb
For this we are looking at a block of land with an old house that can be subdivided into 3 blocks . We will separate the house and sell it and on the remaining 2 blocks we will 3 buildings each suitable for AirbnB.
One of the buildings will be offered rent free to a caretaker /cleaner and the joint venturers will receive the income from the remaining 5.
Income from the 5 Airbnb will be greater than rent on the 6 buildings and Division 40 depreciation will be much higher as towels, furniture etc can also be depreciated so that any of the extra items to operate the AirBnb are free of charge. We can explain.
If anybody is interested give me a call on 0412 324 806