Forum Replies Created
My thoughts would be that the buyer wants a favour to rescind the contract so that they can make an opportunistic $ and isn’t prepared to share it. They are in a position of weakness so don’t be bullied around by their selfishness…. always leave a dollar on the table for the next person!
Extensive list of new Perth property available for sale.Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
so many questions:
* what ‘times’ are we comparing?
* are we even in a boom?
* are the baby boomers causing a protracted change to the market fundamentals?
* has technology permanently changed the market?and finally does it matter? the only thing that history can show is that property consistently goes up in value. It’s about the only certainty in life – so hold on tight to it!
technology is certainly helping markets work more efficiently. was only thinking yesterday how many more real estate transactions must be attributed to the advent of the mobile phone
Extensive list of new Perth property available for sale.Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
Residential Wealth – this is what is so exciting about property! tactics, ideas, high stakes, winners and losers – you gotta love the game!!! (I was the pain that always wanted to play monopoly if you didn’t guess)
watch the tax man – the rules are strict. Just make sure that what you want to do will leave you abiding by their rules before you leap into this. Check their website but there is something about you can’t use the property in the 13 peak weeks of the year or something?? personally i could work around it
markets will adjust – NSW property must be worth less now compared to other places (not absolutley but relative to their yield) because of these taxes and they will be priced accordingly.
My concern would be the lack of new housing stock that will be offered to the market (particularly first home owners) as developers/investors move to other markets. Seems like a very regressive tax and quite a backward step given all the efforts that have been made in tax reform over the last decade or so. The whole problem comes back to our over governance – so many layers of governement all taxing us to the hilt! The trouble is our standard of living here is too mediocre – not bad enough to revolt over, not good enough to get excited about ==> apathy results.
how about – ensure all your retic has timers to stop the tenants killing your plants. when installing air con, dont put in units that only just cope, over power if anything…. less strain on your motors and you arent paying the electricity!
The main driver for Perth is the resources led investment boom. Some truly huge deals being signed off – good for Australia and good for Perth (so long as they leave some energy for our children!?)
Extensive list of new Perth property available for sale.Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
I certainly don’t want heat – my portfolio is only about 5-10% filled…. a lot more buying ahead of me!
Extensive list of new Perth property available for sale.Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
I had almost converted to the herd mentality that prices were on the way down. Then about 3 weeks ago we had a rush on and have shifted about 140 properties in a few weeks (investment properties, off the plan and finished lifestyle products, renovators delights, all sorts). The signs are there – little articles from agents in the weekend paper saying they have never been busier, interest rates at or near their peak. Don’t be fooled… there’s more heat left in this market!
Extensive list of new Perth property available for sale.Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
how does this work please – you sell the option to not take up your option?? couldn’t you get cut out of the deal?
one of his self reminder slogans I saw was “I am surrounded by abundance”. Seeing his lifestyle was testimony to that. I am both amused that people fork out this sort of cash to hear this stuff and inspired that we live in a society that can allow you to get so fabulously wealthy so easily
ultimately the place was only worth what people would pay for it and that came to light on the day. that doesnt mean let the agent sell it for $2 to a mate, but there is only so much you can do – If it were such a bargain why didn’t anyone else grab it? i personally don’t favour auctions but they do have some advantages e.g. the quickness of the sale. also dont forget that price is not always the number one priority for the sellers.
there is a school of thought that the changing demographic will alter the old adage that higher land content will show higher capital growth. The ageing population is a permanent alteration to the housing market. In Perth we are seeing very high growth rates in inner city apartments as this is what the market wants, where as some of the single residential older suburbs with the 1000sqm blocks aren’t doing a great deal e.g. Floreat which never seems to move significantly. I think try to have an each way bet with an apartment that has a highish land value i.e. small apartment complexes, townhouses.
Extensive list of new Perth property available for sale.Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
one of the most sensible opinions I have heard in a long time…
so are you looking back at inner city again?
Extensive list of new Perth property available for sale.Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
I have been meaning to for ages – just signed up. You should def. be on commission!
Extensive list of new Perth property available for sale.Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
the article makes good sense… was looking at an office suite that delivered 8% and little chance of capital gain. The finance rate was 8.25% so why would I bother? CF+ advocates are basically applying commercial valuation methods against residential property. CF- are coming from a completely different angle
Extensive list of new Perth property available for sale.Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
hmmm – some responses…
“to sell off the plan you would need to offer some discount to their true value”
— Not necessarily. Supply and demand are two of the most important factors when evaluating an OTP development. Generally speaking, the project should not move forward if supply exceeds demand.
If sufficient demand is identified, the valuation does not have to be discounted on the basis of pre-construction sales.
AUSPROP – Yes I have heard (and tried) other marketeers that clainm they can achieve full value OTP and they have teh magic database and packaging etc. Having sold OTP and finished no one will ever persuade me that OTP achieves the same prices as a finished product.
“and selling OTP for a townhouse product isn’t easy”
— Again, not necessarily correct. As with any proposed development, you do not proceed if the market and/or feasibility study indicates there is insufficient demand for the product.
The product should also be “packaged” professionally – and there should be an experienced and reputable team behind the development to instill buyer confidence and limit the duration of the sales phase.
AUSPROP – my comments here were eluding to price point, townhouses being by their nature a much dearer product than single level. In Perth the market cannot accept or bear this fact and it reduces, in my opinion once again, the profitability of townhouses vs other styles in all but the premium locations
“To make enough to pay for the other two you would have to be making some extraordinary profits”
— The above statement is a general assumption. [Bear] has not specified the location, estimated price points, market analysis, cost of development, loan margins, etc. Therefore, how can one determine how many townhouses need to be sold to retain the remaining.
AUSPROP – well Bear said half, meaning a $200k townhouse at cost would have to sell for roughly (without doing the exact calcs) over $660k. I would go to the end of the earth to find a deal like that.(i.e. 660 less 200 divided by 1.1 divided by 2
“and don’t forget that half of this profit would go in personal tax and another 10% in GST”
— A qualified tax accountant and financial advisor will ensure this is not the case.
AUSPROP – eventually it all comes home to roost and tax is a reality.
“Developers margins have slimmed from 20% and out of desperation are dropping to as low as 10%”
— Media assumptions – or inexperienced developers? In reality, a development would not be a worthwhile exercise if the profit margin was as low as 20 percent. And certainly not feasible if the margin was below 20 percent.
AUSPROP – 20% is considered benchmark by most. In last years land squeeze guys were going in at less with the hope capital gains would pull them through. If it is your livelihood then 10% beats 0%, but its risky. I have heard margins on the east coast can be a lot better
“If you find a deal that you can do this with I would grab it fast, because there will be 100’s lining up behind you.”
— I would have to disagree. Real estate development is not for those who are inexperienced or do not understand “due diligence”.
AUSPROP – well i’d be #2 in line, followed by many of my buyers and anyone I cared about
Furthermore, we identify opportunities on a weekly [if not daily] basis which reflect the scenario you have outlined.
AUSPROP – can you please PM me with some of these deals as we may be able to do something
“Also you will often find that the profit is represented nearly as much by the capital appreciation in the land.”
— If the above statement was factual, we would all be farmers.
AUSPROP – ? farmers, developers – all just making a buck
[Bear] in response to your question, you are correct to an extent. But there are a number of factors to account for in determining if this strategy is viable, including location, supply/demand, and feasibility.
Extensive list of new Perth property available for sale.
Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
I remember the late 80’s and early 90’s… what similarities are you drawing?
As for the busts that have been happening for 100’s of years… this isn’t exactly a Tulip boom market that we are talking about. The biggest conclusion you can draw from looking back 100’s of years is that property is a scarce commodity that on avergae always goes up.
Extensive list of new Perth property available for sale.Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
