Forum Replies Created
The answer for Victoria is yes you have and or nominee at the end of the purchasers name. However there are now serious stamp duty issues with using a nominee clause in Vic and if you are not careful you might be up for double stamp duty. Best to check it out with a solicitor
I was always taught that when considering advice ask the following two questions;
1. Who are you?
2. What have you done?Those that are critical and dismissive of Martin and his approach let me know if you have been more succesful then Martin and if so when you are going to be holding seminars as I would be interested in attending. If not , is it possible that you might learn something new?
Even exceptional business leaders make mistakes eg One Tel. Would your logic be that if Kerry Packer was alive and was holding a one day money back seminar you would not attend because of the Packers involvement with One Tel?
He was processing the application however his lanscape plan needed a boost so i ended up with having to get a landscape architect involved. My costs were;
$1000 draughtsmen
$1600 sewer plan
$2000 stormwater plan
$1200 landscape architectThat includes the feature level survey. Unfortunately the guy is in the country so cant do stuff in melb.
cheers bill
I am currently in the process of developing 5 units. I found a builder who’s design i liked got a price from them and then found a draughtsman to site the buildings on the land and prepare the application. The whole process cost $1000 total for the 5 units plus council application fees. Do some ringing around it can be less daunting then you think
You will be pushing to get 3 3 br with dlug that are single storey.
An excellent builder in the area is Paulding Constructions or Rodian homes and if you are looking for a good town planner/designer/surveyors call Taylors Development Strategists 95012800
If you speak to them they will give you a good indication of costs. I would of thought that you would expect to be at $145 – $155 including all costs per unit (no land)
cheers bill
Hi Rayson
I am an REA and only sell development sites. My sites are rarely sold in the local paper, Here in Melbourne we use the Age on Saturday under vacant land or investments commercial. I also do developing so I understand your frustration 99% of REA have no understanding of development and the costs involved and therefore often in their haste to list a property list it at a price that is unrealistic. See if there is an agent in your area that seems to specialise in development sites. If so see if they email out the development sites to their clients (this is what I do) Explain to them what you are looking for so they understand what deals to pitch you. Once you have a few agents putting sites to you the deal of a lifetime will come to you once a week
good luck
The deal is skinny, as it is only 11% margin however the experience you gain is something that cannot be valued.
We all have to start somewhere so good luck
The rules are the same, work on 400 sqm per unit and check the councils DPO for the area, even if it says that it is okay for medium or high density check that there are no new strategic plans for the area as i know one council where this will happen and those that have purchased will come unstuck. Note a good development site where you will make money is as rare as hens teeth today and you will only get one crack at it as there are plenty of people ready to snap it up.
I understand that we all want to buy something for less then market value its human nature. However let me tell you why i dont stuff around
1. Property 1 5 unit site i bought at full ask 80k i could have sold it for 125k the day after i bought it however i decided to develop it myself and have already sold 1 unit off the plan. we will end up with a 300k profit
2. Property 2 12 unit site plus childcare i looked at today we will pay the full ask and perhaps 15k above to get a few extra months settlement. all going well we will make 1 mill off this site why would we risk stuffing around and give someone else the opportunity to buy it.
3. Property 3 I sold a client a property where he can cut it up into 5 blocks plus keep the home
the deal works like this
purchase $542500 (100k more then the local agents said it was worth)
development costs 100K
total $642500
He will sell 5 blocks @ $140K = $700K
Home will fetch 270K
total 970k less gst less agents fees etc
He paid full ask and got a 12 month settlement and the blocks will be sold before settlement
Maybe we are not seasoned investors or very smart purchasers. we just look at it from a different perspective
Note properties 1&2 are bought from other agents not through my office.
each to their own i guess
As an agent and a buyer of real estate i can see why you have tales of woe. I sell only development sites and most of the buyers understand that there is no point in playing games. These are seaosoned professionals who do plenty of deals. Sometimes they pay above the asking price…If you were prepared to pay more why didnt you offer more in the beginning. I have done what the agent has done before however the vendor is kept fully informed that the buyers may or may not have been told that there are other offers. So long as the vendor is kept informed the decision is up to them. Learn the lesson well that if you want a property offer them your best price up front and if they want more you will walk away.
Hi Ron
I think it is great that you are looking to do your first development. I have done a few and beleive that when you accomplish it you will realise that property development is fairly simple if you follow some rules1. Get a good planner if in Victoria try Taylors Development Strategists 95012800
2. If in a metro area use one of the big building companies like Pioneer etc… using their existing design or see if it can be modified. If you are in a country town the building costs are higher but still see if there are the big building companies i find them easier to deal with
3. Find a good broker as you are doing only 4 units it will be possible to get the rates at residential not commercial (2-3% difference) Origin who are part of anz seem to be good
4. have the worst case scenario of not selling any in your bus planExpect it to take 9 months for planning approval
good luck
I would recommend a 911 porsche because at 200K an hour down a quiet road if you make a mistake you dont need to worry about what to do anymore some other person will need to work out how to spend your hard earned.
[chill]
Hi fluffy if you are in victoria contact me I specialise in selling land that is suitable for subdivison Its not as hard as it appears but unless you know all the pitfalls it can be risky
Bill
I think its a shame that some people denigrate others on a public forum and think we are interested. I have never had dealings with Michael Yardney but know plenty of developers and agents that have and guess what, i have never heard a bad word.
I think the individual who posted such nasty replies should own up and put them in writing to Metropole and hope his facts are correct or face a nice little defamation action. [chill]
As an agent and buyer I can see the frustration from both sides. Firstly investors are a high priority in any agency as you would hope that you receive the property back to manage. If a written offer with deposit (needed for consideration to form a contract) is done then only a fool would not present the offer. The agent may fudge the owners response and be vague as they may well know that a better offer is to be signed. A reputable agent will come back to you and provide you with the opportunity to resubmit your offer. Now some of you will be saying thats not fair. Lets reverse the situation you are selling your property you receive an offer for 185K subject to finance and building inspection i as your agent tell you that tomorrow morning a buyer is prepared to offer 190k unconditional will sign up with a 10% deposit. What would your response be in that situation Would you want the agent to be slightly vague until the offer materialises.
Therefore to get the property do your homework have your finance at least approved and be prepared to make a quick decision. If you really feel that the agent is not presenting the offer deal with the owner of the agency. They usually dont care who buys it they want the commission.
If you go direct to the owner and the agent has been playing a straight bat most agents will not keep you informed of any future properties so no point burning bridges[chill]
For those that owned acreage in res 1 land it made them instant millionaires. I sold a property where the owner paid 180K in 2001 and i sold it for 1.35mill six months ago. Council certainly make it hard as they prefer to overturn large unit developments even if their own town planners are supportive
I agree with michaels comments, i specialise in selling development sites and i have seen huge developers get caught and do their money if the experts run into touble you need to really know what you are doing i have seen one developer lose over 2 mill to a problem with a growling frog.
good luck
billas an agent the best deals i come across get offered to our loyal clients and the ones we have a relationship with. if you have problems with an agent it is because either they dont take you seriously or you have not built up a relationship with them. why not settle on one or two areas and deal with a few agents and tell them to call you as soon as something comes up. let them know you have finance in place and are ready to buy now as soon as something comes up if you start dropping cards or call the owners direct you might find that you are put on the blacklist by the agents
good luck bill
What you should consider is the relative opportunity of each i know the area very well and would say that carrum downs is the most undervalued (note i own an agency in Carrum Downs) call me on 97829977 as i specialise in development if you like
cheers billNo I recently sold 3 properties all in Auckland and am waiting for a price adjustment and then I will buy up big. I tend to be more interested in doing developments and syndications today. I am still positive on the Oz market especially as people are talking doom and gloom If i was to buy out of Auckland my big tip would be whangarei or hamilton. Good luck with the invsting
