Forum Replies Created
Wow…certainly not what I was expecting to read (or intended) with my post…apologies if it did offend anyone…
The main reason behind the post was due to my desire to learn and discuss the situation beyond what was being shown on TV, especially how an economy recovers from such an impact, what it means for the Community in which I live…The News at the moment is focussing on the issue at hand (which is certainly warranted)…I'm trying to predict what this means for QLD'ers, and even the nation over the next 6-24 months…it may sound selfish, but this is my place of business, I need to rely on the market in SEQ (particularly Ipswich)…It's a little nerving having a contract still in the Due Diligence phase, wondering if I should let the deal pass by…especially when it'll cost close to $1mil to complete…
I've been out all day in Ipswich helping where I can as well as inspecting family and friends properties which they cannot get too…unfortunately there are some that are under…and a key thing to note is that a few places I nearly bought 6 months ago, which based on current maps state that they would not flood, have water through them (so the water has broken well past Councils Prediction)…
Based on the data I've seen over the last 12 months, Brisbane is very close to, if not at, the bottom of it's cycle…what does this mean for the city, the state ??
Will those properties in flood zones dramatically fall in value, will this fall affect the surrounding suburbs ??
Will the elevated sections of suburbs in affected area's go up in value given height is in the forefront of peoples minds ??
How long will the property market stall given the mammoth clean-up task we are facing once the waters sub-side ??There's lots of questions racing through my head regarding this and when the time is right for people, i'd like to hear their thoughts…
Thanks for the contributions to date…it goes without saying that we all feel for those affected, it's a Value that's well engrained in the Australian culture…
Take Care…
Cheers,
Darren
Hi Fredo…
Just doing the numbers on another deal in Brassall…at this stage it's only looking like a return of about 15% so it's not great but it will keep me busy (and it's better than waiting years for that 20%+ deal to come along)…
Regarding my first Deal, I sold my battleaxe block, there's a house on it now with tenants living in it…I've pretty much completed the reno on the front place, just need to paint the front fence and finish off with some landscaping…
I was originally not going to sell it as it's my home, and i've put alot into it that I wouldn't have if it was just another deal…but reality is, if I want to accumulate the cash I desire in the next 5 years, the smart option is to sell down and use the cash to leverage another deal or two…
It's not an easy decision, and my partner isn't happy that we've been doing a live-in Reno for 18 months and after all the hard works done, i'm now going to sell (saying she isn't happy is putting it politely…hahaha)…
But I'm not in this game for one deal, I need a lot more to get to where I wanna be…sometimes these tough calls need to be made…and made by yourself when emotion is on the line (emotion has been the killer in this one)…
All the best Fredo…
Cheers,
Darren
Brian – I've used the below site before…it was a year or two back, and from memory the link only stays active for a couple of months…have a read of the info on the site, i'm sure it'll give you some more info…
Cheers,
Darren
Ipswich is challenging right now – IMO it's still a buyers market but be conservative with your estimated sale price – there's evidence out there of people having to take a fair hit to onsell right now…and while i've heard people spruik it as 'soon to boom', it's still a low socio-economic area (so don't expect the really Big Profits/Growth if your in it for a quick flip deal)…and keep your reno's pretty simple, you wont get any more for fancy appliances or shiny handles in The Switch !!
They use to mine Coal in Ipswich, so there's a heap of Mining Overlays in certain area's, which can increase your costs. Like any Sub-Division, work on understanding the Planning Scheme (which you can get from the City Council website).
Based on my one and only project, your estimate is pretty close to the mark. If it's a relatively straight forward split you should be able to get it through for approx $70k, which includes your contributions and council levies (they are the killer and really pull alot of the profit out of the deal).
Battleaxe blocks vary in price but most are 'listed' for approx. $140k. They are however harder to sell than a finished product and finding someone to part with that much cash for a small parcel of dirt in Ipswich is not easy.
To put it in perspective, you can buy brand new, 3 bed / 2 bath places for just over $300k…so it can be a tight market when you consider all of the costs involved…and to play it safe, estimate that you'd only break even once you'd reno'd the front house and cut half the land off.
I'm still in the front house, it's my PPR, no intention of selling it any time soon, it's not a great market right now…
Hope this helps.
Cheers,
Darren
Cheers – Done
Cheers D…
No, I'm not in the RESULTS Forum, I assumed i'd be hooked up come July…Just had a look and my user name and password for here doesn't work…
Did you hit the guys up to hook you in early ??
I might flick them an email…
Cheers,
Darren
Hi Redda,
I've tried numerous times to get pics loaded into posts – how'd you get it to work ??
Please keep the photo's coming…
Good Luck with it.
Cheers,
Darren
Mrs Property,
Search the forums for some costing spreadsheets ideas, I haven't done this but i'm sure there will be something floating around.
I think that both of the options you've put forward sound great, at the end of the day you want to aim for a win-win for both parties involved. Also consider a contingency plan, what happens if you only get half the profit you expected, only break even, or worse, loose money in the deal.
It may sound harsh, but it's best to be prepared, i'd highly recommend having the discussion with your folks regarding the 'worse case scenario'…this is not to scare them out of the deal, it's to show them that you're considering every possible outcome (and that you have a plan should the worse eventuate).
Please also use any information provided on these forums to reflect against your own thoughts, at the end of the day, make the decision based on your own due diligence – no one but you has a clear understanding of the deal you're working on.
Good Luck – I hope its a great experience for you.
Cheers,
Darren
IMHO – as a minimum you should be paying at least a few more percentage points than the banks are offering, anything above 10% return would be suitable for a quick deal in the current market. It also depends on the relationship you have with ur JV partner, the amount of money involved, the risks, etc…case by case basis. Some money partners may want 20%+ before considering the deal, especially if they’re financing the whole project.
Given it’s family, there may be some additional flexibility. Start by asking them what they would like out of the deal, at the end of the day, it sounds like they’re going to be the ones that give you the green light to proceed.
Another option is to look at what the figures tell you:
how much do you have in the deal, how much will ur folks be in for, is it a case of approx 50% each in the deal, and 50% slipt of the profits ??A wise man once told me “it’s sometimes better to take a little of a lot, than take nothing at all”….here’s hoping it leads to another profitable deal with your folks.
Cheers
Darren
I managed to get my hands on some of Carly Crutchfields DVDs and even she states that the 20% profit margin is calculated on today’s market price. The 20% allows you to take a small hit from a drop in the market and still profit from the deal.
I would be very dubious about relying on equity growth alone, especially given the recent economic climate.
Remember, when developing, Capital growth is the cherry on top, not the cake itself…
Cheers
Darren
Talk about buying Problems….good luck with the rest of the Reno Brian.
Regarding pics, you can create a free account on a file sharing website, upload the photos, then paste a link to your photos into this forum topic.
Search Google for a ‘Free file sharing’ site. It’s the only way I’ve figured out how to post pics on here for now.
Normally I’d paste a link for you but I’m on the iPhone heading into work.
Good luck !!
Cheers
Darren
Ree – just curious what state you are in ??
Cheers,
Darren
Thanks DWolf…
Re-Valuation has single handedly ruined my day (thanks Mr. NAB Valuer)…so the feelings' mutual right about now…
Good luck with the decision you make…hope it works out for the best.
Cheers,
Darren
Hi Paul,
There's a banner on the Right side of this website that is titled "Register Your Copy". You click on that, input your email and you'll get sent the details (email the Admins if you've done this already and still haven't received an email back).
Thanks for the Update Steve.
And for anyone curious about the follow up of my question at this years Conference – The Back block I asked you all about, has been SOLD !!
Cheers,
Darren
I’ve been onto the book bonus site and have downloaded the templates that have been provide. You may need to register if you haven’t received this. There are still a few bonuses that haven’t been added, they’d be great to get a hold of….
I was really looking forward to the networking opportunities that were possible with the $250k club. It would of been a great way for newbies to learn from each other and potentially create Joint Ventures, little annoyed this hasn’t happened but it certainly hasn’t stopped me from continuing in the world of PI. As it turns out, I attended the Mega conference this year, signed up to the RESULTS package and I’m looking forward to it helping me take it to another level. It’s the mentoring that sold me (or the “Wisdom Without Waiting” as Pat Mesini put it).
I’ve personally stopped replying to the homework from Steve, I don’t know who else sends it in but if he isn’t getting anything back then I can understand why he isnt sending much out. From memory there was some mentoring mentioned in the program, I don’t know whether this was locked in or not, nor really want it involved….
Overall, little dissapointed some things never happened but I felt we did get a fair bit for our cash (2 conference tickets, some starting material, the chance for a nice freebie if you hit the target).
That’s my 2 cents anyway….
Cheers,
Darren
Hi Sid,
Check out if the property has a Mining Overlay to begin with, no point in doing the Geo-Tech if you don't have too…
You can do this on PD Online (http://pdonline.ipswich.qld.gov.au/pdonline/masterplan/enquirer/default.aspx?page=search)
The info listed above by Amanda is what I was referring to in my reply earlier (to the question you asked in my post)…
Good Luck…
Cheers,
Darren
(PS – Amanda, if you guys are still around, thanks for the detail provided, certainly helped me with a few pointers earlier on !!)
Just found it
http://www.propertysystems.com.au/the-complete-renovation-system.html
I wish I had of had something/anything prior to my first Reno…
I always think about these costs as the ‘cost of education’.
You would pay twice as much for a basic Uni course, all while studying and not earning.
You should never buy something you can’t afford, but if you are certain that you want to get into Renovations, and you like Steve and Cheries style then you have to ask yourself ‘are you ready to committ’ ? If so, then go for it.
I was fortunate enough to see Dean & Elise Parker present their renovation package at this years PI conference. It was only around $1000 and contained extensive checklists and information on renovating. I think their web address is http://www.propertysystems.com.au but that’s going from memory (you should be able to get it from google tho).
I don’t think it’s a 2 day workshop but def worth looking at if the price is more appealing.
Good luck !!
Cheers
Darren
I can, and yes if it sells that's what will happen…
Problem is, if it doesn't sell then I still pay…and if I don't pay, there's a high chance that he's not going to push as hard to turn over the land…there's also less exposure in the market…So given I want it sold, i'll be paying the fees…
Just something I never considered…this is my first sale and I didn't think this was an expense of the Vendor…
Cheers,
Darren
Thanks Terry – just to clarify, eventually the business will be turning over stock within a 12 month period – hence the reason for setting it up this way.
Cheers,
Darren
