Hehe, go Scott!

Yeah 400k for a townhouse is a bit rich. It'd want to have a gold kitchen for that! The whole thing is a bit on the nose. Probably great for people who can't think on their own but the whole profit based on CG reeks. I think you are bang on Scott with the company making the profit on the deal.

Run Pascoe!

Also tell us where your "deal" is so we can chew on it!

D

WoW!

Uhh 3 years to get two units done and dusted is a really long time. The margin definitely should be 20-25% after all the costs are accounted for. This profit should not be in tomorrows dollars because if the CG never eventuates neither does your profit. The length of time is really long. Council approval on something that is like what you are describing should be under 12mths unless you have a really bad design or no precedent in the area or council is really bad/busy. Construction time on 2 units should be 6-9 mths with a half decent builder.

If you get a decent architectural firm who is familiar with small developments they will be happy to help you muddle you way through (you pay them for doing this of course) You buy the property, you get the funding, you do the rest. They help you get it through council and do the design etc, and can even organize builders.

I think you could find a better deal on your own. Where are you shopping?

Have fun

D

Yep WJ I think you haven't really had a good look at what councils are approving at the moment, all apartments. If you are not building boutique apartments you are missing out. What will people live in if they wont live in mcmansions or apartments? The street?

What are you basing a drop of 30% on? No really? Because unless something drastic happens, like WA splitting off and forming it's own country or The AUD being worth nothing then it ain't gonna happen.

What do you live in WJ? House, apt, townhouse? And do you rent, so you don't have to worry about the 30% drop in price, or have you bought?

Families will still want big houses to pack kids and stuff into, so the planned communities will stay while anyone still has small kids, inner suburbs and urban areas will all end up as apartments purely because nobody wants to live in the Nullabor. Geez I don't know why……

Melbourne especially has a sick obsession with living close to the city so prices will rise and the floorspace will shrink.

D

Sounds nasty.

Terry makes a lot of great points. I would explain to the rental manager that they need to let you decide in future. Your property your rules. You may have offered three months or a weeks free rent or something a lot less.Sounds like the manager got spooked and went for broke. Betcha they will be telling everyone in town about it! Thank the agent for their work to try to keep you out of court, explain that next time you will get legal advice first (you can decide that if it ever happens again) and that you as the owner will make any future decisions.

D

Reeree,

Pay and get some legal advice! Wow does that mean that anyone who gets a new kitchen put in needs a permit? Really!!!! And if you get some tiling done you need a permit? I really do not think so. A permit is required when you make structural changes to a property, such as walls, or renovate nearly the whole house. If they have a DA this will cover much if not all of the works.

If the stairs are the same as specified in the DA then you have permits for them. If they are completely different and you took out walls to rearrange the floorspace around them then maybe not.

You need to get good legal advice. Then you need to ring the person who got the permits (town planner, architect etc) and get them to explain exactly what is in the permits (if you do not already know or have copies). Then you can also call the council and explain to them what you have had done and if it differs from the permits and ask how you go about getting permits, or if you even need them.

Make some phone calls, maybe you can go to the building ombudsman in your state to try and get them to help mediate with the builder. You can also find out about consumer advocacy in your state.

I wouldn't panic. He won't want to go to court as you can point out all the parts he has charged you for which you have not received. You are still a consumer even if it goes to court unless he can prove that you renovate for a living or you are in some way in the business of building.

Get some legal advice now! I would explain to him that you are unhappy with going to court/tribunal with out some legal advice and you are seeking that first before you finalize anything. Put it in writing and send it registered post. Keep records. Most solicitors will happily write such a letter for you (for a fee) if you need.Try not to engage with him in phone calls or arguments or whatever as it doesn't help, gives him more fodder and will just stress you out.

Good luck, let us know how you get on.

D

Good on you, Darren! Sometimes you just need confirmation of what is already in your mind.

I'm still facing the can I do something better with the money question after having properties revalued and not getting the equity gain I hoped for.

D

WJ,

We just had some of our properties re-valued in order to access equity. They revalued the properties a lot lower than expected and as a result the equity we accessed is lower, hence we can borrow less money.

This does not mean that the property market has gone down. This does not mean lenders are no lending. This means that lenders may be lending less and hedging against any fall that may happen in the property market.

I read an article recently, I wont waste anyone's time by putting it here, which basically said the sky is falling in all the major capital cities therefore the market was falling (conveniently leaving out Melbourne and Sydney, maybe they are not major cities) and a bunch of other rot in which they manipulated the facts to suit the story.

The media likes a beat up. Anything to sell papers and make people watch the tv.

How can you say that Oct 09 was the beginning of downward pressure when Melbourne especially has been in the highest growth period. If you mean that there is downward pressure on some property markets that may be more acurate but to blanket the whole country as being in the slow slide dowhnill is incorrect.

China will not stop importing our rock, they sell half it back to us anyway and have none of their own. KRUDD will get the boot in the next election which is why he is waiting to call it because he is scared out of his wits.

Consumer confidence will change with the govt change and retail will again strengthen with housing in Syd and Melb being slower growth but still growth. Bring on Perth's next boom. These are my crystal ball predictions for the end of this year and the start of next.

Forget about the property market as a whole going down, coz it just doesn't work like that. Unless……………………………..

the population of the country disappears Quiet Earth style (google it), but I don't think so.How do you convince 20 million people that their houses are worth nothing?

It is like petrol prices. People are now used to paying $1.30 p/l. At the start it was a jump up and down, gee the price, oh the terror of the petrol. People still buy petrol. The prices is the price and it is the same with houses. Yeah they are dearer but no one will stop living in one. They will just pay the price that the property is.

D

Why don't you call them and ask them. They should tell you straight away. If they umm and ahh about it then you know they do and that there is a questionable legal issue.

Then call a couple of other agents in the area and ask them too. You may also ask them about their fees etc and might be able to get a better deal or a PM you are able to have a better relationship with.

 I have a working relationship with the three PM's we use (one who manages three of our properties) and they call or email the minute they need anything. They know my name and my face and I am not just one of the landlords who never spends a cent or is cheap, or a pain in the you know where. We get better service and they have an easier time with the properties.

D

Hi,

I would go the other way and think that they are trying to keep the property in the best possible condition in order to have an easier job renting and keeping tenants.

Ours puts little things like reminders about gutters before winter and getting jobs done before the end of the financial year as to claim jobs on tax.

Think about it from their point of view, a place with new curtains and carpets and paint is going to rent quicker and for more money than something that is old and run down. Better that they take care of than me waste my time and better that they remind all the cheap skate landlords who wont spend a buck as well. They have their preferred tradies but they are generally the cheap ones who don't charge the earth for jobs, so I would be pretty surprised if there was a kickback.

D

FWord,

Rich is defined as,

ample: affording an abundant supply, very productive, having an abundant supply of desirable qualities or substances, and lastly,
fat: marked by great fruitfulness.

So if you are ample and productive and have an ample supply of desirable qualities and substances you can be fat.

I would think that with your definition even some of the worlds richest people would never be 'rich' as they will always be striving for the next goal.

I think that if you have plenty of time and plenty of money then you can be classed as rich. Plenty of time with no food (bought with money) and you will die, plenty of work with no time you die (burnout).

I will ring you FWord, when I get the either the jet or the money that can afford such things I may not be at peace though.

D