What about those who not only add value to an existing property but build a second dwelling on the same site? Legally, as far as the tenancy tribunal are concerned, does the dwelling have to be subdivided or on a cross lease etc? (Council do not require a separate title). It makes sense to me to optimise the site and cut down on ground care for tennants.
Great question. They don’t need to be subdivided. They can be on the same title. But, you should make clear which areas are for the exclusive use of each household, and which are shared.
It is very case specific. If you had a personal mortgage, most investors would put a lump sum towards that. Perhaps, converting some of their mortgage across to a revolving credit (or offset) and putting the money in there. That would keep the money liquid. If you don't already have a personal mortgage, you could use it to pay down investment debt. Though some investors would use some of the lump sum to pay for their top up and use the left over money as the deposit for their next investment. Quite a few niggly things to consider, so best to talk to a mortgage adviser to get the right answer for you.
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I would postulate upon watching this that this organisation benefits somehow from flogging new builds.
Do you have an article/podcast/RUclips video which gives a breakdown of the acceptable cash flows per different districts?
What about those who not only add value to an existing property but build a second dwelling on the same site?
Legally, as far as the tenancy tribunal are concerned, does the dwelling have to be subdivided or on a cross lease etc? (Council do not require a separate title).
It makes sense to me to optimise the site and cut down on ground care for tennants.
Great question. They don’t need to be subdivided. They can be on the same title. But, you should make clear which areas are for the exclusive use of each household, and which are shared.
If you get a lump sum of money, is it a good idea to put it all on the mortgage so you don’t have to top up anymore?
It is very case specific. If you had a personal mortgage, most investors would put a lump sum towards that. Perhaps, converting some of their mortgage across to a revolving credit (or offset) and putting the money in there. That would keep the money liquid.
If you don't already have a personal mortgage, you could use it to pay down investment debt. Though some investors would use some of the lump sum to pay for their top up and use the left over money as the deposit for their next investment. Quite a few niggly things to consider, so best to talk to a mortgage adviser to get the right answer for you.