Hi,
I’m interested in developing small residential/commercial projects in Qld. What stage is the market in right now? Is it still in expansion stage (more room for growth) or more than likely approaching hypersupply or depression stage?
In the US, most regional markets have clearly reach the bubble. Is it the same in Australia? If the market is heading downward in Australia, would it be better to string off development projects for now and wait till the market recovers?
Thanks.
Alwhy r u posting a topic that is already on the front page????
resiwealth
Hi Resiwealth,
Which front page are you talking about? What is so obvious about my question?
Thanks.
Kindest regards,
AlSomeone else is interested also – Look here: https://www.propertyinvesting.com/forum/topic/17778/
Luke Woollard
Licensee
Pacific Lifestyle Property
http://www.plproperty.com.aucomments made are general information only. you should seek professional advice for your particular circumstances.
The one directly above yours Allan … ????
Hi ResiWealth,
I checked that topic that you were referring to but I dont think it answered all of my questions.
I think the discussion consisted mostly of contributors attacking other contributors.Also, sorry to sound to ignorant as I am new to this site and currently not living in Australia. I am looking to form a private REIT in the US and form strategic alliance with local developers in Australia.
I just thought I post a simple question here just to get a feel instead I get sarcastic questions being thrown at me.
Al
Hi Al,
I was wondering myself why you didn’t know what is in the main media.
You must forgive us silly Australians.
However many of my American friends tell me that Australia is in the same position as America in the property cycle.
Please don’t judge all of us by the few that throw mud.The property market in SE Qld is still growing.
Perhaps it has slowed a little but is still strong.
It is a good place and time to invest.
In NSW on the other hand the extra theft from taxes has caused the market to shrink.
Queensland has benefited greatly from this as it most likely has the growth of the two states.
Just my thoughts Colin.
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For all your CLEANING and GARDENING work.Hi allan i’m not sarcastic just logical. If u feel that there r people bashing others then u have the opportunity to pull the post back in line.
Yes your view is correct and does happen a lot on this forum me included so u r not alone. However i think that posting a similar post only spreads the disease.
So Allan i am a developer in QLD, give me the deal of what u have in mind, or show me the money he he
resiwealth
Hi Allan
For someone who has been involved in the development market in Brisbane and SE Qld for the last 11 years I dont think you question is foolish.
Certainly Brisbane and the surrounding suburbs have seen the number of viable development opportunities diminish and a lot of developers including ourselves land bank property until the market stabilises.
You need however to ask yourself why do you want to develop in the first place. If it to make a profit after selling the properties then maybe now is not the best time to enagage on your first project unless you can buy well.
If however you are looking to build both equity and long term income then now maybe an ideal time to start.
The difference is in the profit margin you are prepared to accept.
In good times a developer will look at 20-25% as a minimum return on his capital. Anything less than then he would not put his money to risk.
If however you are happy to own the properties at say 20% less than market value and be happy to rent them out and enjoy the income stream benefits then go for it.
Remember that whilst death maybe a certainity, Tax is not. Both GST and Trading profit or CGT is only assessible once you sell the project and realise the gain.
If you keep the property and utilise the newly formed equity then you can go again and again. As long as you can service the loan then the equity will start to build up as the market increases.
Your income from the rent maybe taxable but the other expenses will be deductible including depreciation and capital allowances and will offset this income.
Cheers Richard
[email protected] http://www.yourstatefinance.com Development Finance & US Finance our speciality.Richard Taylor | Australia's leading private lender
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