Forum Replies Created
Interesting in hearing, what was the verdict on this?
YES!
We wrote a business plan and found it fundamental for us. We are operating as a family group and found that the plan did two things for us:
1. Allowed us to see how we’d operate as a group on a small project (i.e. putting together the plan itself)
2. Aligned all of our goals to ensure that we’re all on the same page at all times.Plus all the other benefits that the business plan does, we used it to give our advisors (mortgage broker, accountant, solicitor, etc) an idea of where we were heading and also allowed us to guage how keen they were in assisting us to achieve those goals.
Long story short, do it, you won’t regret it.
D.
Hi Pippa,
My brother and sister and I (as well as 2 partners) have just started in a family based property venture. We had many concerns when starting this up as to how it would impact on our family life. Some concerns that we had were:
1. Being able to seperate family and business.
2. Issues with family members not involved.
3. What happens in the event of break-up (between family member and their partner)
4. What happens if there is a falling out.
etc etcI don’t see that there is any issue in doing this but it is important that before you start anything that you look at the situation from the worst perspective to see how people respond and also that you set out expectations beforehand.
Before we started, we invested a month or so in generating a business plan, this involved all of us putting in time and effort in researching projects/suburbs, financial budgets and planning, mission statements, etc etc etc all up about an 80 page document. This set out group expectations, roles within the group, agreements between all members, but more importantly it was a mini-project that we all took part in, this quickly highlighted any issues that we had working together and also how we could avoid or deal with these issues. This was good within itself as it allowed us to see how we’d work as a team before there was any major money invested. We all worked really well together and we quickly found where our strenghts and weaknesses were and also allowed us to find the best way to work going ahead. Project 1 is underway as we speak, a subdivision and build project that should complete around December, so far so good.
So to summarise, I think that family projects can work as long as you:
1. Set expectations early, PI can be a major time and money investment. Make sure that everyone is aware of what is required from them BEFORE you start. Sacrifices are required, as long as you put it in writing and people sign up for it then you’re a step ahead.
2. Undertake a small project first, even if its a simple business planning project. Even something as small as asking people to bring 1-5 potential projects to the table each week/fortnight, you’ll quickly see who’s dedicated to the cause and who isn’t.
3. Put something in writing, having a business plan, mission statement, set of goals, whatever it is, as long as everyone in the group has a clear cut idea of what they are trying to achieve and everyone shares that same goal/ideal, you’re a step ahead.
4. Play to peoples strengths, take advantage of the different skill sets that you have in your family. This will be the most time effecive way of achieving each step/goal, and it’ll also help people becoming frustrated when they’re trying to do something that they’re not good at. While its good to challenge people and expand they’re skill sets, you’ve still got to be as productive as possible.
5. Work out how you’re going to structure things financially, finances can split people really quickly. Whether you set the whole thing up as a trust, company, etc, deciding how people are going to put cash in and take cash out is a big one. Speak to an accountant as to how to structure you’re venture, but as long as you all understand early on how to divy up your funds both going in and coming out. Also, decide on your investment approach, if you’re approach is long term holding of property, make sure that people aren’t expecting a return on their money immediately.
6. Set aside specific family (NO BUSINESS) time, being able to enjoy your family without conversations drifting to the business is important. Esepecially if you’ve got family members who aren’t part of it. No one wants to feel excluded, so don’t spend your time at the family BBQ discussing only business, take time to enjoy your family’s company and have set times for talking business.
Those are probably the key points that I’ve picked up on thus far, working and succeeding with family can be extremely rewarding and fun, but it takes a lot of work and planning to ensure that it does work. I think that you have to think in worst possible consequences before you start and see how people react, it can often be an uncomfortable discussion to have, but better to do it now than in mitigation or court.
Best of luck!!!
Dave.
Hi,
There are a few suburbs with bad reps in Melbourne, many have been turned around and many are planned for improved government funding. If you have a search around, you’ll see that there are many “Western Suburbs” which have been earmarked as transit cities, these areas are getting government cash injections in improve these cities, public transport, infrastructure, etc etc, all very good for improving a cities standpoint.
If you look historically, there is are many Vic/Melb cities that have been turned around:
1. Collingwood
2. Docklands
3. Carlton
etc etcI’d start by having a look at those transit cities. We’ve been doing that, as someone has already mentioned, Footscray would not be a bad place to get into. But it really depends what you’re after. There is a 30 year plan on many of these cities.
Some other places that may be worth looking at are:
1. Frankston – Bad stigma about it, but with the new freeway/tollway being developed down there due for completion in 2009 (???) it’d be worth a look. A bayside city with newly developed access to the city, sounds like a winning combination.
2. Ringwood – Will benefit from the freeway development to Frankston and commute times to the city will be cut, also plans to redevelop much of the city to attract new business.
3. Tullamarine – Many young couples who are working in the city, or newly developed business parks in the area are ellecting to live closer to save money on fuel expenses. Great vacancy rates at the moment, development friendly councils and not bad entry level costs.
Probably many more, your best bet is to jump on the state government and local council webpages and do your research/due dillegence. There are plenty of opportunties out there, just do your research and the opportunties will open up.
D.
Sounds good, I’m 24 and based in Melbourne, always willing to share my experiences and learn/leverage off others.
D.
Probably, if anyone asks, the letters had blown onto the street as well as the newspapers, I happened to glance down at the letters when I was returning them. [thumbsup2]
Thanks for the feedback guys, certainly alot of ideas and many I’ll be taking on board and putting into action. Might avoid the criminal ones, thanks anyway [thumbsupanim]
I’ll keep you posted and let you know what works.
D.
One step ahead of you, already onto it [biggrin]
Thanks again
D.
Thanks Agave, I’ll give that a try. Unfortunately by the look of the overflowing mail box I don’t think that the redirection is in place, however you never know.
Is the title search that you speak of an online facility through your council or do you need to go into the office?
Cheers
D.
Hi Richard,
Does RP Data allow you to access contact details for a properties
owner?Ah, just noticed that its only available for NSW/QLD properties, I’m in VIC so its not an option through RP DATA.
Any ideas why? Any alternatives anyone can suggest?
Cheers
D.
Hey Snowflake,
Dual occupancy permits will differ based on your council. Can you be more specific?
D.
Hi guys,
Looking for a good, property savy solicitor in either the Melb CBD, Western suburbs (Oak Park/Glenroy) or Eastern Suburbs (Ringwood).
Any help would be greatly appreciated.
Thanks
D.
No but seriously, have you thought of undertaking any projects that might make this land more appealing to buyers/investors. Perhaps getting planning permits or subdividing may make this a more sellable property.
Obviously its location, zoning, condition, suitability for buyers, etc are all going to contribute to the demand from your buyers. What are other similar blocks selling for, and what are the differences between your block and those others? Are you overpriced? etc etc
D.
Where, what and how much. Sounds like there could be a bargain on hand[lmao][lmao]
Thanks for the feedback guys, onwards and upwards!!
D.
G’day Scott,
Thanks for your prompt reply (you too Just Learning).
We’ve scoped two initial projects:
1. Development of existing site w construction of 2-3 new 3 b/room townhouses in Glenroy.
2. Acquire and renovate an existing property, with ability to sub divide block and build a townhouse/unit on the second block.
Essentially where we are at the moment is putting together a team to assist us in planning out these projects and moving forward with future projects. From what I can see from your website, you appear to have a good organisation with high praises being sung by many members here.
What we’d like to look at doing is discussing our strategies with a QS (whether its yourself or someone else), such that we fully understand what strategies work best in our favour, and that we’re not guessing, rather using bought knowledge to make the best decisions moving forward.So to answer your questions, we’re probably looking for a QS to assist us in:
- Cost planning for existing and future
- Producing TDS’
The truth is, we may discover that we need additional services, but that is all part of a pretty steep learning curve at the moment, one that we’re thoroughly enjoying.
Cheers
Dave.
Dave,
At the end of the day most QS will produce a similar product. Don’t waste time agonising over which one.
I use Depreciator as to many of my clients. You wont have a complaint with him.
Move onto the bigger decisions! [specool]
Cheers,
Any ideas on these guys?
Thanks guys. That gives me something to work with.
Cheers
D.
Hi Richard,
I suppose both:
1. Say I have an existing house on a block and want to subdivide the block such that the existing house is on one block and there is a second block capable of sale or building of a seperate property.
2. Say I have a vacant block and wish to build units on that block.
Obviously the details for each councils will change, for the sake of the excercise, lets say its in the Moreland council.
Thanks
Dave.
