Forum Replies Created
After years in the industry i do find some of the comments on hear quite funny.. Just because of a few bad apples the whole industry suffers!
My first question to you all is how do you value great advice?
The industry has been scaled and gutted my friend with all the accreditation you need these days its becoming a joke. I have no aspiration to become a financial planner but this is the way it is heading! I have NO issue with being accountable for my advice or disclosing the commissions received, but how much is too much??? On top of this commissions have been halved down to 0.4% plus GST in up-fronts with trails being almost non existent for the first 12 months with most banks.
We deal with residential, investment, business and commercial development finance on a daily basis. I have seen many so call professionals and moreso bank employees tie clients up soooo tight that they cannot get out of their current situations without loosing a property or two due to the banks hard lines. These clients have more equity than you can dream about but because of imbeciles like this they cannot access it to continue moving forward.
I believe this is caused by the banks making it harder for brokers to earn money, requiring higher sales (loans written) and so called refund brokerage firms. At the end of the day brokers have to eat too! You don't go somewhere and pay for a carton of milk or movie ticket etc and ask for 50% refunded, its like selling a car for 10k and asking for 5 back… How do businesses survive like this?Personally i feel broker commissions should be done away with altogether and a service fee should be charged instead. Just like an accountant, solicitor, plumber, electrician etc that way you have the fees disclosed upfront.
That's my 2 cents worth, but in closing you get what you pay for either way and cheapest always ends up costing you more down the track!!!
Hi Andrew,
What is your strategy? Resi, commercial, development etc etc.
I agree with v8ghia that the simplest way to do it is to purchase in different areas/states near capital cities…. or purchase positive and negatively geared properties. Either way you need to understand each market of each city before you even think of purchasing in different areas, it has been covered before but a GOOD buyers agent is worth EVERY cent!Try NAB they will lend 95% on investment, no postcode restrictions and internal vals which are usually a drive-by. 9 out of 10 of our deals are valued as contract price…
You can always negotiate the rates!!!
Most i see and have used are between 6% – 9% + GST, fees vary from state to state. Self managing is great for some but if you have a large portfolio I feel your time is better spent on growing your portfolio rather than chasing down rents etcFood for thought!
You might want to watch this link
http://www.abc.net.au/landline/content/2010/s2894275.htm – play bottom is on the top left of screen
These companies spend billions of dollars to get these projects going and are not going anywhere in a hurry that's for sure!
Good luck with your search.
Cheers,
Do a JV with a builder then!
50% of something is better than 100% of nothing…
Back to your original question, it really depends on how much you want to earn!
Most of the business owners on this site (i am assuming) are doing what they do for the love of property not for the money. We all have our own little niche's in various markets and we all are rewarded accordingly from the love & passion we have with investing/property/developing.
So pick a number… You can earn as little as 50k per annum – millions per annum all dependent on how many projects you are involved in, what strategies you have in place and what size they are!
Cheers,
No worries Gambler, you will have no issue with the team at Global they do this sort of thing day in and day out.
Keep me updated!
Cheers
TrentI use Global Group in Brisbane – http://www.globalmanagement.com.au they have been fantastic to date. Not the cheapest around but they have saved us thousands on our projects.
Give Barry Jakeman a call on 07 3236 9000 and let him know i referred you.
Cheers,
Pascoe,
Did you purchase the land outright without DA or do you have an option over it?
320k each for a townhouse seems a little rich. It better be a massive townhouse like around 280-300m2. Most developers look at spending around $1000 per m2 for building costs. The other thing is once you have received your op works certificate (BA/CC) a decent builder would have that done within 26 weeks.
Always work off today's figures as you don't have a crystal ball.
Good luck
Warren and the team at Surat Basin Homes are a great bunch of guys. We have dealt with them many times before and use them for some of our stock.
Check out our website http://www.aifinance.net.au as we provide house and land packages in this region Chinchilla, Roma, Tara, Dalby, Miles etc all of which are achieving superior rental yields.
Good luck.
Trent Giumelli
Director – AIF
0404 902 623
[email protected]
http://www.aifinance.net.auHi Melbproperty,
Congratulations for taking the first step. A few questions for you:
1. What is your plan to get going?
2. Do you have a target area that you would prefer to start in? and Why?
3. What hours are you willing to commit to this?
4. What developers/companies have you contacted so far to ask about doing a free weeks work etc (work experience)?
5. What is your working background?
6. Why property developing?
The best thing you can do is go out and get your hands dirty, anyone can sit in a seminar and waste money. Get on a job site and ask questions… No two developments are the same, you are always learning something new each and every time, be open minded. The logical thing is to start small with something like a boundary realignment or subdivision just to become familiar with council requirements and work your way up from there.
DON’T jump into a development blind as it will cost you dearly.Trent
