Forum Replies Created
Yeh Garry its too long ago to quote the excat numbers, but the builders werent keen to use it and the cost savings werent great. times may have changed but basically you needed to have long straight runs to make it worthwhile. you also have to make sure your electrical switches are located correctly as very difficult to chase it out later! for conjoined units i would definitely check it out though.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
nope – but I think the concept is great. Tilt concrete could be an option for something like this, though I have had previous disappointment in the cost saving potential of tilt.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Interesting – this stacks up against the feed back I am getting from builders. The flow on effect will be to second hand property resale values, which are already looking cheap against replacement values. But then there is the rental oversupply… how’s this for a scenario: the higher construction costs among other disincentives lead to reduced new property supply, and declining rental yiled sees a reduction in rental accommodation available, leading to a correction to rents per week, from which prices can grow again. One or the other has to give.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Marisa is that all those crazy CF+’ers pushing prices up? [arrowhead] I have been so busy on the day to day activities that I haven’t really had time to look at much. Just read Kiyosakis last book which was interesting – well it was and it wasn’t! A quarter of the text would have been a small mercy, but his attitudes to people seeking capital gains were interesting. In summary he says people seeking capital gains are dreamers and just traders and you need to look at the deal based on todays cash flow, which fits in with the whole CF+ approach. I guess the difficult concept to accept is that ‘blue chip’ property has a track record of increasing over the long term and that is the appeal of it for most people, yet under the CF+ theory we are asked to just think of that as a bonus. This arguably means looking at properties in less desirable locations which I find hard to do. Thus my focus is to look at ways of extracting higher returns from the lower yielding properties – so diverting the overly taxed trading profits into lower yield property for a long term hold. It just puts pressure on me to trade harder and faster! Do you see yourself doing more and more CF+ deals then? i.e. would you declare your first a success?
Kevin – great to hear you are out of your duplex development. Will send you a PM.
John
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Hi Marisa – some time since we spoke. Back then you were considering CF+ and commercial opportunities – I think you went down the path of a country CF+? Are you happy with how things went?
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
hi there – have you done your intial feasibilty analysis on this proposal? You say you want to make a deposit on a PPOR AND keep units which sounds very ambitious… its fantastic if you have found this opportunity though. If it is such a good opportunity I would wonder why the vendor is offering you finance and not doing it themselves? Presumably you are getting vendor finance on the land, are you providing the funds for the construction? Remember you need to pay GST and tax on any of the units you sell, then apply those after tax funds to your other purposes.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
sometimes these numbers appear rosier than they are… sold a subdivided block for a developer earlier in the year. He bought it for $300k and i sold rear block for him at $152k (record price at the time) and front house for $205k. he had stamp duty $12k going in, subdivision say $15k, agent fees $14k, interest and legals around $10k, conveyancing costs. one of these numbers must be slightly out as i think he made about $5k all up before tax. waste of time for the headaches and risk involved.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
I have a relative dying of asbestosis. The specialist told her that podiatrists are at high risk of a very similar disease… from filing toe nails! how disgusting is that?!
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
I think this asbestos issue will become a huge issue. the deaths so far are the tip of the iceberg; when tens of thousands of people start dying I think there could become mass public paranoia. our friends at James Hardie thought they were clever making a run for the US, lets hope their past catches up with them.
Hi Kattan – just wondering how long the process took you, from finding the land to the expected completion date? Will it be CF+ or at least neutral upon completion?
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
there are some people in WA that have had beach shacks for donkeys years and I think they eventually just get bulldozed. Also some riverfront properties run their fences right to the rivers edge even though it is technically public space. I am not aware of them having some ownership right to the land. Would be interesting to hear if there is some way of doing it.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
and my standard heads up whenever this topic arises… they are definitely not a club but a project marketing company / real estate agency. Many people give them a good reference though (and then again many dont)
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
in large projects you will get the best OTP prices at the start as the developer will need x% sold in order to get the bank financing. The other good deals come at the end of the sales program when the developer just wants to clean the project up.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
stamp duty shouldn’t apply as you aren’t buying anything, though it will trigger capital gains tax. hidden nasties could include the amount of time it wil take to get the title issued before whilst waiting to settle on the sale (if you are selling it) and the associated interest or the biggies which are things such as council required garages, power domes, water works etc. Also additional fencing
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Hi Misty – I would say with a reasonable degree of difficulty. It demonstrates that the research side of it takes more than looking at one table of numbers. I would also say that you need to use your gut instinct when buying property and look to the future not what was great yesterday… trying to predict future demographic demand, rezoning possibilities etc etc.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Hi Derek,
thanks for those ideas. The book could be a handy resource even for myself. I have also been told that the Dept of Justice is responsible for administering the Strata Titles Act and that apparantly the ‘Strata Titles Referee’ can make an order on such matters. Will get to the bottom of it.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
I agree that using a median average can be very misleading. I would suggest looking at many indicators: median average, medium average – both split by land, hosue and units. You also need to get a feel if this is people just selling improvements on the land or if the land itself is rising, though one can influence the other. I would also look at % ownership of investment vs owner occ (as investors will probably sell as prices rise which will keep prices cooled). Look at the surrounding suburbs and how they have performed and why. Getting back to your initial point, I can easily see why your gut feel doesn’t tally with the reported median movement. I have read median price reporting for suburbs before and know for a fact that they are well under reported because I have sales that I personally made that are awaiting settlement and will push it up. Aceyducey made a good point too. I know of a suburb that is very sleepy as far as sales turnover goes. When we release a development product in there shortly it will blow the median price out of the water and will show some statistically very large increases for all properties in that suburb. Does that truly revalue the older stock around it?
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
yack I don’t see how you concluded that from this article? my conclusion was that if you work hard and get into property you can do very well for yourself and that you should be looking to the next cycle.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
yes this is a very strange response from your PM
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
yes as much as his self placed pedestal position is irritating, I do have to agree with what he has said there.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
