Hi G1

What would you like to know. Have you got a splitter block there?

Brendon
Onyx Finance

Absolutely, paying for a top lawyer is essential. Like most things in life you get what you pay for, so it’s always worth paying top dollar for the best.

In our situation though, it wouldn’t have made much difference. In a hot market, you take the contract the developer’s lawyers draw up or you buy elsewhere because if you don’t buy it, someone else will.

Brendon

Michael / Derek

This has actually happened to me. We found out too late that our lawyer was not good enough, and the developer did indeed slow down the earthworks on the land subdivision to pass the sunset clause date.

We purchased 10 lots off the plan and they increased in value 30k each in that time.

There doesn’t seem to be much you can do though in though in those situations, as in a hot market (such as last year) if you try make the conditions on the contract in your favour for this type of situation, the developer will just sell to someone else.

As for taking the developer to court, it sounds good in theory, but we found the legal bills and time wasted would not be worth the exercise.

The developer was also a prominent Brisbane lawyer who I would love to name here but I would probably get sued so no chance of that.

On the other side of the coin, if values dropped I’m sure we all wouldn’t hestitate to use the sunset clause to get out of the purchase.

Cheers

Brendon

Hi B37

I hav not dealt with them but have had a look at their designs before and wasn’t impressed. They are certainly at the cheaper end of the market for building homes but I found their deisgns lacked any open-plan areas and were too compartamentalised (is that spelt right??).

Have you checked that they will build out in your area as I would highly doubt it.

regards

Brendon

Gap Finance in Sydney can do 5% per month.

If this is your last option, offer the developer 1% per month. From their position, they sell their property, and get some cashflow for a period after.

Brendon

Hi Robert

First of all, I would recommend changing to Interest only. It will initially ease your cashflow and P&I is pointless in my opinion if you are looking to invest again in the future.

As for costs, don’t forget to budget for Council rates, landlords and building insurance (which I hope you have already, if not, GET SOME!), maintenance, and bank fees if you have an ordinary loan from a bank, and managers fees.

Hope this helps.

Brendon

It’s b….y freezing up here. Was 21 degrees yesterday! Had to put my beanie on!

I bet you’re only coming up for the glorious amber XXXX nectar Gatsby? NOT! Still tastes like cat’s p..s every weekend!

Brendon

Hi Nikola

And many lenders will take permanent part-time into account.Casual may be a little more difficult.

Have you thought about renting out the property initially, as then you can use the rental income to increase your servicibility?

Brendon

Hi DD

Went last month to their launch and I can confirm that the setup was excellent, very well organised, and great for business owners to network with similar minded people.

You must be dedicated to be driving 3 1/2 hours to it though, better make a weekend of it as you said with some footy!

Brendon

Alright guys I’ll take more inititative.

What i would also like to do is setup a regular meeting for games of cashflow 101.

I realise there are some clubs around but apon contacting them, I haven’t recieved a reply.

If I organise a time and place how many would be interested? I find groups of 4 are best to keep the game flowing.

Brendon