Hi gpfstuff and all,

Our last reno we did ourselves. I rang the rental agent and asked for the phone numbers for the handyman, electrician and plumber they use. Then I got all them out to show them the work I needed doing. I did all the painting myself and hubby installed the kitchen (Bunnings flat pack) The tradies then got the keys off the agent everytime they had to go do something.

There were drawbacks with this as the plumber had to get another guy out after he broke his arm the guy didn't install the laundry trough right, and it wrecked the trough. (wont buy a flat pack laundry trough again)

Mostly it worked well, I left lists for the handy man and drove there once or twice a week and sometimes stayed the weekend. It was 2.5 hrs drive away from my house and I've got kids so it was long, and it took longer then I wanted it to.

There is plenty you can do of an evening, such as painting, replacing stuff like handles, or scrubbing putting flat pack together. Noisy stuff can be done during the day. 

Get a team around you who you can trust, pinching the agents tradies is usually good, as they do work for the agency all the time, and mostly have to do it without owner supervision.

Good luck, if you want to do something bad enough you can find a way!!

Cheers

D

This is a good thread!

There are half a dozen properties for sale in my suburb, looking good for being a seller. Next is this issue with going on RPDATA, residex etc. Is reporting mandatory? Is reporting accurate?

Until real estate agents are forced to disclose sale info (whole host of new issues here around privacy etc) the true picture wont be there. All this data need to be taken with a grain of salt because it depends on who puts it out as to what spin comes with it. HIA have an agenda, Steve Keen has his own agenda (who knows what it is, maybe to be wrong a lot), like politics housing is a emotive area, it shouldn't be but is, and so we get information, but it's with a twist.

Everything I read says "housing crash imminent", "no housing crash imminent", "don't build xyz", "build xyz". I just look at what I can control, work with it and the rest be darned. Prices go up, prices go down, you just need to work with it the best you can.

If Melbourne does crash, then good on it. I for one will have cash, for buying, and property for renting out or selling if it doesn't crash.
Cheers!

D

This is exactly the interesting part.

It's interesting what xdrew is saying about not being able to see or touch. So we know a portion of people will NEVER buy off the plan. I don't see buying off the plan as speculation.

I'll put it from my point of view. I know as a developer how long it has taken to get approved (long time) I know how much captial has had to be poured in (lots) so I know if I don't finish and get the product correct to the buyers satisfaction, I don't get paid. So from a risk point of view, the buyer puts in maybe 5% deposit, which gets stashed in the real estate agents trust account till much later in the piece. Not much risk, maybe opportunity cost if the deal goes under.

As the developer, if the deal goes south, all the money is gone, theres no going back. So rather than speculation on the part of a buyer, it seems to me like a small risk, the kind a person would undertake in a standard deal anyway.

As far as price increases in apartments and speculation, then thats another story. I wouldn't call people who are crossing their fingers for capital growth investors, rather plain speculators. And as said above, it all sounds like sharemarket (or gambling).

I think if the return is there, then it's a good deal. And then it comes down to being an unemotional investor.

I found what WomeninPropMelb said to be very interesting from a demographics/demand point of view.

I worked in the big box on the corner of Ballarat and McIntyre Rd, in Sunshine, many years ago and Sunshine needs a nice big redevelopment, and it has done for awhile now. It is an easy commute to the city and that whole corridor could do with revamping.

Cheers

D

I think it depends on the profit and time/cash in/risk that it will take to make the profit.

For instance if you were going to make $50k by just selling the land, and it will take 3 months to complete the deal or you were going to make $100k and it would take 12 mths to finish it, then what would you choose?

Everyone is different, what is a huge profit to some is a small profit to others. Depends on time it takes to make the money, cash in, and what profit can be had. It really does depend on the goals of the person.

Cheers

D

Hi Kolya,

Maybe head over to an Active Property Network meeting if you want to test the waters, they meet once a month on a Monday night in Blackburn. (google them ). Other than that the Property Apprenticeship seems to be the way to go for unbiased property knowledge.

Nigel, your post probably got deleted because between you and Richard Taylor you seem to be trying to ensure you get everyone to go through you to invest in property. Hey I could be wrong, but it's just what it looks like from where I'm sitting.

Cheers

D

Lol, 6 mths, I wish!

2 years on the one project with our VCAT hearing this Friday. I love developing! Everyone loves councils!

I think the red tape is really holding back a lot of development. I'd love to know what councils people are having speedy success with.

Michael, how is the Hunter going in general with developments and subdivisions? There seem to be a few blocks in Cessnock that are being touted as development blocks that may be undergoing rezoning. What's your take on this?

Cheers

D

Hi, Everyone,

There is some great info here already! I'd say work on both a $ return as well as % return, as well as looking at how much your time is worth to you. I personally wouldn't consider a profit of less than 25% worth my time, but…….. if that was $25,000 and it took 2 years then no.

The more risk there is in a deal, there should also be more reward, so if there is more cash in the deal then you should be looking at a bigger profit. The more time, and complication in a deal you should be looking at more profit. Smaller deals, maybe you can squeeze your profit margin down a bit.

There are plenty of people who would spend  a million to make $150k, but as everyone has said above there is more to it.

Also factor in if your costs went up by 5-10% and if your end sales price goes down by 5-10% then you will have a very realistic profit figure to work with. Then look at your profit over the length of the project, if the profit is $100k and it takes 2 years, then is 50k per year a good deal to you?

The black art is,  today's end sales price – ALL costs = profit ($320k -$220k = $100k example only). The trick to getting the numbers right is being so sure of the sale price you will achieve in today's market, all costs such as land, construction if any, council fees, selling fees, fencing, moving power, telstra pits, tax,  anything really. It's all about the numbers!

Good luck, keep us posted

D