Forum Replies Created
It can be done in Australia, but you must really know your areas correctly, prices, resales val, what buyers want.
Also set up your structure correctly and seek the best tax accountant you can afford.Set up one structure for holding assets, and another for trading.
The money is really made when you buy- as with any country, and what you can create.
We have prob done about 25 in 3 years in OZ, and 8 in NZ. I am in the marketplace 5 days a week solid on the road, on phones, auctions, mortgagees, ads in papers, call agents a few times per week.
Also you must make your offers very strong, solid and quick. Make sure you get a good team of people around you, the best advice possible from builders, and a switched on finance broker that takes action.
We do this as a business and some deals may give a small profit and others a larger one- we look at it all on an overall annualised basis.
You must go emerging areas, high rental demand areas also- so if you cant sell for the margin you need, then you will rent out and hold.
There are people out there doing it I run into them regularly at Bunnings, auctions, paint shops, renovation materials auctions- many are families, dad/ sons, mum/ dad, sisters, mum/ daughter- we love it and have learnt a lot, get to be with each other most days rather than stuck in an office or battling traffic, if we wish to go to the beach or sleep in we can also, and then just work later at night.
Goodluck- and yes it can be done!!!
go to http://www.wotif.com.au and see what last minute specials.
There are some good places not too expensive about 10 min out of cbd.
I would probably look Beenleigh, Eaglby, Slacks Creek, Marsden/ Cresmead
Good area, proven growth, strong rental demand and close to SE Freeway and core South side employment bases.
Good stock goes in less than a day though, so you will need to be totally ready, and put ina strong contract, solid deposit, short finance terms, shorter settlement, as you are competing against many buyers from Sydney, ACT, Melbourne, cash contracts, and self managed super funds buying.
Bye
KylieIve got 2 degrees specialising in property and business, and some of the analysis paralysis in this topic thread is enough to spin the best mind in circles.
Whilst everyone is debating up, down, property, shares, rents, inflations, and Maslows hierarchy of needs with dogs salivating, theres deals out there, money to be made and people doing it.
Im 36 and started in property at 20- if I had listened to all the reasons why not to, property market, up, down, around, excuses I would have been stuck working at Mc's on my feet 12 hours a day and wiping up gherkins and mess. Instead I got around people that were making money daily, watched, learned, listened, studied and didnt listen to anyone negative around me.
To date I can retire and ride my wave runner on the gold coast, donate my time to charity, be with my family, have kids soon and stay home and raise them correctly.
There are opportunities everywhere yo just have to find them, be quick, have a good network, ring good agents every few days, act quick on offers, work out your strategy, get a correct mind set and a reason to do it, then follow NIKE and JUST DO IT!
Ive been told lots of times Im too young, go get my husband to help me and put an offer in or sign a contract for me, should be home having babies, or latest one was its not possible for someone young, blonde and female to do million dollar deals- maybe I interherited the money, or had a rich old husband???
None of this- I started with nothing, worked a lot of jobs, backpacked the world and came back to oz at 26 with 200 pounds to my pocket, 10 yrs later after hard work, motivation, blocking out negatives and analysis/ paralysis, taking calculated risk, applying NIKE slogan and JUST DO IT! I have now a portfolio of 20 properties in oz, nz, usa, and still all the people that were in the accounting analysis mode are sitting locked in their corporate towers crunching their numbers, what ifs, working themselves to death, missing time with their families, divorcing, or stressed that a heart attack is on the cards.
Analysis is great- I have done 4 yrs accounting in my business degree, but if I used this line of training and not my informed risk taking streak- Id still be counting the $$ and cc at McDonalds with the daily bank recs.
All interesting topics- Life is short, take informed risks, find emerging markets, hot deals, and really know your market- which takes weeks of ponding the pavements, hundreds of phone calls, and lots of looking at stock and the market, as there are micro markets amongst markets!!
Good luck – go for it and no excuses!!
Great call me after 10am is great –
Not sure I exactly understand your question- have I had experience of selling my own stock or do I own stock, or do I have my own properties?
Yes 15 yrs real estate / construction experience in Sydney, Brisbane, and NZ- Buying, selling, advisory, project mgt
2 degress in Business/ Property
Post Grad in Property
Dip Real Estate Mgtand my own properties at this moment in portfolio
1 unit Sydney
8 homes Brisbane within the 15 min zone cbd
2 in Yeppoon
5 under construction in Bowen
2 under construction in Coomera
8 in Invercargill NZI buy and sell a lot of my own things also – but mainly hold, or may build a few and sell a few, or split up land keep a few blocks, sell a few.
Bye
tammy wrote:Thank you for that Kylie
I will call you on Monday.Had anyone had any experience as a vendor?
Cheers
tammyHello
I do a lot of buyers agency work and development consulting.
Give me a call 07 3423 0909 Monday to Friday 10am – 2 pm or 0408 38 4434
Depends what the site is, area, deal, and profit margin in for the developer , and most developers will not pay buyers agency fees, and look at sites through specialised agents or property consultants. Bye
check with asic and cross check all info- often the greater return the greater risk- so check really behind the scenes exactly how your funds/ investment is secured, and maybe get a finance broker to also explain the whole money lending/ securitisation of deals like this, and where you shall be placed as a creditor should they go belly up.
Lots of red belly black snakes out there, I am a specialist adviser and also sit on the crown law advisory board for property matters, development bungles, bankruptcies, mortgagees, creditor issues.
Dont let 1 deal impress you- thoroughly do your homework and always see if worst case scenario ever happens, what is your plan?
Bye
We love renovating, and it is a challenge and very creative. We are professionals in the corporate world and have left the corp world 4 years ago, and we renovate, build, split land, have rentals, sell some, and we increase our equity through renos approx 300k per year. I find it better than battling traffic, putting up with sleezy bosses, corporate structures, bitchiness, getting up early, and never seeing my partner.
We work together now, have lunch together daily, swim , wake up when we want, start work normally after 10am and if we wish to swim int he day at the beach, then we start in the arv and work til late with music going.
I take my dog, mum, grandfather, mother in law, aunties and whoever needs work. We employ about 12 people between 19- 25 years of age, that had no experience, qualifications, self esteem, and now the greatest reward is seeing their confidence,and some have gone to do their own renos.
After we do a few renos we reward ourselves with a 5 week overseas backpacking fun adventure and just got back from France/ Italy/ Greece/ Dubai, to start another 2 overhauls before xmas, then well rest up again and enjoy the gold coast for a month with family.
At least I cant get sacked, retrenched, put on the scrap heap when Im 50, and arent told by anyone what to do, when, how long a holiday or lunch break to have, not to bring my dog to work, turn the music down- we have used I guess our knowledge, uni education to think, plan, strategise, read and digest a lot of info, ideas, tax, loans, etc, project manage.
Plus I have learnt good skills- painting, gardening, plastering, tiling, paving, floor boards.Also Ilike dealing with all the tradies, people int he industry, they are characters, down to earth, good stories, make us laugh a lot and are genuine, unlike corporate structure employment.
Bye
KylieNZ- I went to a few different tax planners last year in OZ and NZ- to work out structures etc, as we buy , invest, sell, hold, build a lot in NZ/ AUST- I found the most simplified option for us in NZ was in our personal names, as we are residents of Australia for tax purposes.
Loans were all done through Pioneer Mortgages Auckland, my broker is Mary Obrien NZ MORTGAGE SOLUTIONS- her email is
[email protected]–My accountants are Shand Thompson in South Island Balclutha- accountants name is Gaye- they were recommended to me by some australians that have over 70 properties in NZ and they handle their portfolio. They have been very thorough, good to deal with, smart, adn up with property.
Bye- Goodluck- dont wait too long as properties are going up like Gold- we mainly buy Christchurch and Invercargill- South Island
I ahve a few brand new homes in Aust and NZ and allow my tenants to have small pets, to date I have had no issues, and I have not charged tenants extra either. What I have found is it is very hard for tenants to find nice properties that allow pets, and when they do they tend to stay a lot longer, and love it as there own home. I have had more issues, and damage with children in the properties, so now if it is a professional couple or elderly people or a single with a pet- I know they will 99% be long term tenants, want to look after all- paying rent, home care and be happy and settled.
I have a brand new lovely home and a small mini fox terrier, she comes inside only at night to sleep, and outside in the day, I wash her 3 x per week, and mop/ vacuum a few times a week, my home is like a show home- so I guess it is up to the people. If we sold and we had to rent til we built again or bought elsewhere I would be discriminated and maybe find it difficult to find a home to rent as we have a small dog.
Also I feel it is always better to pay very good money mgt fees and find the best PM you can, and the good ones will not work for peanuts- my rentals I pay my PM 9.1%, rent is paid to me 2 x per month on time, they email all statements, look after all bills, M/R, and I get a quick email update monthly. I make it my policy not to get emotionally involved with my investments.
Maybe you need to find a better PMGR and also pay them more, and write a list of expectations and get them to sign it, also ask the PM how long they have worked for the company, as good to get a stable company and Property Mgr.
Goodluck- maybe ask for a meeting with the tenant and an inspection- if you react too emotionally you could upset a good tenant and they may go elsewhere, just so they can have their little pet! bye-kylie
I work in a lot of advisory and legal areas of property, and in my database have found this which is fromt he ASIC site. Go to http://www.asic.gov.au and there is a site there fido which shows scams, problems, watch dog. Hopes this assists with your research. Bye
04-416 Co-Develop property schemes to be wound up
Friday 17 December 2004
The Australian Securities and Investments Commission (ASIC) has obtained orders in the Supreme Court of Queensland to wind up managed investment schemes operated by the Brisbane-based property developer, Co-Develop Australia Pty Ltd and eight related companies (the Co-Develop Group).
The Court ordered that each scheme be wound up, and appointed Mr Lachlan Stuart McIntosh and Mr John Richard Park of KordaMentha to supervise the winding up. Mr McIntosh will also assume control of the Co-Develop Group.
The Co-Develop Group, the sole director, Mrs Kylie Jane Freeman and Chief Executive Officer, Mr Leslie Raymond Freeman, also undertook not to seek any further money from investors for the schemes. They also undertook to refrain from declaring that sophisticated investors, joint venture agreements and promissory notes were exempt from regulation under the Corporations Act 2001.
Furthermore, as part of the order, the Co-Develop Group, Mrs Freeman and Mr Freeman undertook not to seek to recover management fees until investors had been re-paid their principal investments and interest.
ASIC alleged that the Co-Develop Group operated an unregistered managed investment scheme, carried on a financial services business without holding an Australian financial services license, offered securities without a current disclosure document, and engaged in conduct that was misleading and deceptive or likely to mislead and deceive.
‘ASIC has a structure in place to regulate managed investment schemes that aims to ensure that investor’s money is protected. Those who invest in schemes that aren’t registered are not provided with these protections’, ASIC’s Executive Director of Enforcement, Ms Jan Redfern said.
‘While we will take action to protect the interests of investors, consumers need to be vigilant, and always check their money is invested with responsible and compliant operators’, Ms Redfern added.
The final hearing of the matter was adjourned to a date to be fixed.
Background
ASIC alleged that in the course of financing various property developments, the Co-Develop Group sought and obtained money from the public through the use of promissory notes, joint venture agreements and debentures. The funds are used as mezzanine finance, that is, as additional funds to finance obtained by the Co-Develop Group from a financial institution. There are at least nine schemes where the money invested by members of the public are used in connection with the property developments being undertaken by the Co-Develop Group. The property developments are located in Toowoomba, Beaudesert, Redbank Plains, Coombabah, Morayfield, Margate, St Lucia and Westbrook in Queensland and Evans Head in Northern NSW. Each scheme has up to 17 investors and funds invested in the schemes total $28.8 million. Returns between 35 per cent and 100 per cent per annum were offered to investors.Get the agent to send you a copy of the contract ASAP- it is their job, and let your solicitor peruse it – dont do anything until you see the contract as it may be fully signed up. Why hasnt agent faxed a copy to you or your solcitor.
I am a property advisor/ specialist and buyers agent in QLD/ NSW.
If there is a binding legal contract and also dated, then if you terminate during cooling off yes the seller is able to
request 0.25% held as a penalty.Aah- look at your contract asap
Hi
I have built probably 15 houses int he past 3 years, and love it, the key is planning, having the right builder, get the land for a good price, and do a worst case scenario and best case scenario spreadsheet. Im building another 3 now at Coomera nr Dreamworld, have a good builder, and I shall go to site weekly and also I ask for a mgt report weekly. It helps that I have a degree in property/ construction, but when I first started I was specific with every single room, things, paint colours, carpet, handles, letterbox, fans, kitchen design- builder appreciated it though as no dramas, stress, or problems.
Havent had any bad experiences yet! but they may come- life cant always be rosy, and I have a saying if you cant handle the heat get out of the kitchen!!- go find another profession or way to make some money, as yes sometimes things do stuff up.
Do heaps of research- and mainly learn from agents, what is selling, for what price, what are buyers looking for, and what do women want in the kitchen and bathroom!! and dont scrimp on bad kitchen applicances, cheap cupboards, or basic dishwashers!- goodluck
Hi
You have to work out are you looking to grow capital, or do you want yield. If I had a spare 800k, Id be off to Gold Coast corridor, Bowen, Gladstone, Rocky, or buying a house very inner Sydney cbd area- the best I could for 800k and have it as an executive rental. I guess you have to decide what you want from the 800k, there are many options.
I have put every cent we have and huge loans into Gold Coast Corridor- Upper Coomera, Helensvale, Tugun, and also up in Bowen near the mines.
Think it out and make sure you have a very good tax accountatn, planner, and correct structures in place
Loosing a deal with 70k equity already in it!!
Hi I have recently had a property under contract, a mortgagee for > 50k less than market val, bank did valuation, mortgage insurance approved, our finances fine, supposed to go unconditional today at 5pm, ADELAIDE BANK comes back at 4pm and states we do not longer lend to HYBRID TRUSTS- sorry!! – after they have been processing for 10 days now, have a copy of our trust deeds, and have lent to us a few times and also hold 2 of our properties with solid equity in .
Apparently bank policy has changed I was told and also told, we no longer lend to hybrid trusts as they are only tax trusts and our policy has changed.
So at this stage looks like we may not be able to get another entity sorted in time, and sellers need settlement in 10 days!!!-
So anyone with a HYBRID TRUST, now ask your lender DO YOU LEND FOR HYBRID TRUSTS????- I know Macquarie do and have no issues at all.
Bye- hopefully I can sort a solution in time
Good area, and growth potential on the horizons again for Beenleigh and Eaglby. No problem to get tenants if property neat/ tidy, ceiling fans, or 1 split system aircon.
Logan Central also ok- yes listings not even reaching open market at the moment, anything under 200k for a unit, or 280 for a house is gone in an hour or so, a lot of registered buyers out there with cash from Sydney, Melbourne, Vic, Wa and people moving up. Goodluck
