Forum Replies Created
Legally I don’t think there is nothing to stop you doing it – practically it’s something I wouldn’t do
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
is a dangerous path… many unconditional contracts never come to fruition. what will happen if the property never settles and you have just spent big $ on a new kithcen etc?
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Simon – my understanding is that in Oz the lenders will only lend on hard costs not end value, so the above example wouldn’t work so well. is that right? eventually you run out of ability to fund these things as you have to stump up 20% of the project, unless they are all presold or until the building is complete. If you could borrow against projected end value you could go crazy
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Yes there was a project here in Perth that I know of where they did actually buy the properties themselves to on sell to their ‘members’ (with a hefty profit of course) but I think they stopped doing that as it was just pushing things a little too far. This is quite a different strategy to just being real estate agents / marketeers which is what they are now i.e. onsellers. There is nothing wrong with being a marketeer – but they are not a non-profit club as their name suggests. Anyone can list their property with them out of interest. If you want to sell it can be a good way to move it – but the commissions are right up there… you’ll be paying a lot more than your local LJ Hooker office for example.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
sounds interesting, look forward to this one (plus I can give heaps to my mate who is a ‘Support Member’ aka unlicenced commission based sales rep!)
I have said my 2 cents before regarding this topic.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
still nothing to fear if you haven’t cheated – a big difference between cash flow and expectations vs. actual taxable assessed income.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
St Andrews will be huge, has been talked about for years and now it looks like it is here. This place will make Joondalup look like an inner city suburb! my question is: do you think the exisiting houses in Yanchep would be a good buy, or do you think they will become old and daggy compared to the squeaky new suburbs that are about to engulf it? Maybe buying into the first stage release would be the way to go.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
and then seconds later I read….
“Prices have levelled says Treasurer (Your Mortgage Magazine, 24/6/04). According to Australian Federal Treasurer, Peter Costello, house prices have flattened and he expects
little price movement for some time to come. Indicators, however, suggest that the property market is strong enough to bounce back within a few years”Extensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
seems for every doomsday article there is a sunny sky one – who knows what to believe? I read not long ago that affordability was at all time highs! is a pity the BRW article is for subscribers only. I too remember those mid nineties when property did nothing – if only I had bought more!!
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
a relative had a place last week that she wanted to list – one agent said $169-189k, the other $155k. The one who quoted $155k said “I will walk to China backwards if you get anywhere near that”. It sold in first 2 days well into the range, so we are organising some sneakers for him. I see the market segmenting… anything up to $250k seems to sell in days, $250k to $600k seems to be stagnant and a little slow, the $1m properties seem to have no shortage of buyers depending on their unique attributes. Of course if it is CF+, add 30% and sell it to an investor…
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
this book sounds like a good read. I agree with:
“According to the author, it is not possible to make a quick buck in this trade. What is required is a breadth of knowledge and careful planning.”
developing is hard work, stressfull and risky. If you pull it off it can make you good money, but there are many pitfalls. The guys that do it well have been doing it for a long time and really know their market. The sexy aura that surrounds ‘developers’ is quite weird. When I get cab drivers telling me they are doing a property development, I know there are problems!
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
I use low doc and it isn’t because I am hiding income. If you are hiding income you will possibly get caught. If you aren’t, tell them to jump, you have nothing to hide.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
these problems are fairly standard – I bought a place on 3 months settlement and the bank still couldn’t get its act together in time, now I will have to look like the baddy and ask for an extension. a place i sold on 31/3/04 that was suppose to settle 31/5/04 is still dragging on – various excuses from all sides but the contract is unconditional and I hope to settle next Tuesday. As for valuations in 48 hours – well that’s their sales pitch. The reality is it takes them that long to channell your emails to the right person, then they have to talk to you, get the details together, get out in the field, do their report, organise payment, get the report to you. I know it is theoretically possible but in practice?
If the guy is still asking for finance extensions he obviously hasn’t been turned down and the banks do genuinely drag their feet. I would say the deal would still have a fair chance and settling with this buyer will still be a lot quicker than going back to the market with it and starting from scratch.
As my colleague keeps telling me – a house isn’t Sold until it settles!
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
I recall from the conversation a few weeks back now, that when I asked him it was pretty much anywhere in the south west corner but then a bit more if going further round to say denmark or albany direction. i think he said it would get it to toodyay no probs. Don’t quote me on any of that!
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
the key thing is to look for suburbs that adjoin ones that have had high growth. as an example, Trigg in Perth went up 75% last year (or was it the last 3 months, cant recall). anyway the suburb next to it would be a pretty good bet. You need to compare the suburb’s long term growth rate with its 12 month growth rate and see if it is underperforming of late, in which case grab it. but dont forget the numbers can be very misleading and you need to make your own judgement call on whether it is the land that is going up or just people spending a lot on buildings.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
wow – these guys are falling over themselves to make bigger and more outlandish claims.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
what’s in a name?… if the property is a dog it doesn’t matter if it is pos geared or negatively geared – it aint actually geared at all!
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
isn’t this good news? I thought you had to move because next door was being developed in poor taste – seems they don’t even have plans drawn yet. If the market is so depressed there I doubt they will ever build.
The psychology of buying and selling from my experience is that whenever you buy it feels like the market is hot and you can’t find anything, yet when you sell all you can see is competition and lack of buyers.
If you want to move by all means go for it – but don’t undersell your biggest asset and pay top dollar down the road. And certainly don’t use an agent that is telling you how unsuccessful his business is – my god – is this what he will be telling potential buyers of your property “yeh this area is rubbish and is not selling and my staff are all leaving” ?!
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
probably a further rise of .25% but then who really knows what the future holds. The oil price has saved us and acted as a brake on the economy which is an example of a strange circumstance that happened to work in our favour. yields are low and as investors sit there not seeing their portfolios double in value every two years I am sure they will get bored and sell out, decreasing the supply of renatls and increaing yields and so on. If governments don’t play with the market too much it will find its own balance.
Predictions that ‘The End is Nigh’? – well I am sure one day someone will call it right.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
with the GST – it may be great to claim the GST inputs, but as soon as you sell or put the asset into productive use you will have to pay it all back, so it’s really only a cashflow/timing issue.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
