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  • Profile photo of Dean1974Dean1974
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    @dean1974
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    December 20, 2010 - 6:08 am

    Hi RickH,

    I'm currently doing my DD on the US and i am also thinking of investing in KC, as well as Atlanta and Phoenix.  Could you tell me the Zip codes of your KC properties? ie 64 XXX. It would be of real interest to me.

    Thanks Dean.

    Profile photo of Dean1974Dean1974
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    @dean1974
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    December 11, 2010 - 12:24 pm

    They advised against investing in the US ???

    • nothing kills your great ideas more than people with small ideas and limited imaginations. People like this will always tell you why something won’t work and never give any reasons as to why it will.

    All good. More for me.

    Profile photo of Dean1974Dean1974
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    @dean1974
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    June 22, 2009 - 11:38 am
    Scott No Mates wrote:
    What exactly does the LEP say? Does it prescribe an FSR of 0.75:1 or must you have 25% of the area as open space with no cap on building area? Does that include circulation space for cars/pedestrians? Provision for visitor parking? Provision for private open space? You may find that the building area will get hammered when you allow for all of the above (if they are required).

    Using very simple numbers ie yours:
    675 m2 @ $1250/m2 = $843,750 (construction cost) + $265,000 (xtg house/land) + (SD/Legals) $13,250 + (landscaping) $15,000 = $1,137,000 + $454,800 gross profit (20%) = $1,591,800+ $159,180 gst = total sale price of $1,750,980

    Your net profit will be much less by the time you take into account interest on the loan, legals for strata plan/sales, sales costs, design/DA/CC/council contributions etc.

    How much do you expect to sell these town houses for? ie if you have six the price will equate to close to $300k each – that is more than you are paying for the house & land – is that realistic?

    I think 1250 per m is way too high.  If you can't find a builder to do everything for 800 per m then you're getting ripped. Especially right now where the competition is so high for work. that alone with add more than 300K to your bottom line.

    Profile photo of Dean1974Dean1974
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    @dean1974
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    February 8, 2008 - 11:26 am

    Don't listen to people who say 'you have to diversify'.  If you do your homework correctly and know your market then you CAN put all your eggs in one basket and make a killing.

    Diversification is only for people who have no idea what they're doing.

    Profile photo of Dean1974Dean1974
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    @dean1974
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    January 15, 2008 - 5:29 am

    15/85 hey??? Well it sounds like Mark is getting stingy. When i did his course last year he offered a 35/65 deal.

    Anyway my business partner an i took advantage of his knowledge and info and did the deals ourselves as we decided that 100% was a lot better :)

    Remember the key here is knowing what council are doing with future re-zoning and committing yourself to gain DA then on sell to a developer.

    Profile photo of Dean1974Dean1974
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    @dean1974
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    January 15, 2008 - 5:05 am

    A good rule of thumb for No.4 )

    Town Houses usually require 250sqm plots. So if you have a 2500 sqm block, take away 10% for drive ways and community space then divide the result by 250 to get the number of units for the block.

    Therefore 2500 -10% = 2250
    Left over = 2250sqm/250
    No. of units on the block = 9

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