Forum Replies Created
Richard,
I can see that we are looking at the equation from different sides of the fence, You as a developer quoting your cost to build and Me as an investor having to pay a builder to build. So from my side of the fence the builders marginis a real expense unless I can convince you to build for me at cost. (which would sure give me a better bottom line). We did in fact pay $1782 per m2 and the saleable value of the townhouses would be in the High $400's and one would perhaps be valued at $500K but we are not selling. Have rented all out at $440 to $470 per week.
I still believe that Ian would be better off working on a higher value than a lower one while doing his feasability study – just my thoughts.
Jon
Thanks G
Jon
Hi Mat, When you say committee meeting, I'm assuming that you mean Body Corporate Committee and if so is it your annual general meeting? If it is I would definately put your idea forward for discussion. This should be done by way of a motion and needs to be in writing prior to the meeting so that other owners have a chance to think and talk about it.
Contrary to HGWells thoughts, it will not effect rateable value for the owners nor will it affect the Body Corporate levies (in fact if you are paying a gardner at the moment, you may well reduce the cost to the BC because once the courtyards are given exclusively to the unit owners the responsibility for maintenance falls to the owners not the BC.)
The only costs that would be involved in this process would be
(a) A surveyor to draw up a survey plan showing the area and position of each courtyard
(b) Lodging the survey plan with the relevant Govt Department and having it anexed to the Body Corporate Management Statement as exclusive use areas
(c) Fencing the relevant courtyards.All of this could be done through the Body Corporate either by raising a special levy or by increasing the quarterly fees for a period of time and doing the job in stages. Good luck with the project, if done corectly it will raise the value of each unit.
Jon
V8ghia said
Wow Jon – you must have had a bad week selling those units to all those property investors who judging by some of your other recent posts have a major gripe with.
No, not a bad week at all but thanks for the concern.
Ken asked an honest question and I gave an honest answer, however, having been blasted previously by people on this site with regard to opinions on real estate, I got in first with the comments that seem to be the norm. I can point to any number of posts to substantiate my comments – sarcastic as they may have been. And yes, I am aware that sarsasm is the lowest form of wit, but I wasn't trying to be funny.
Jon
Richard please contact me, my last block of three bedroom townhouses (just completed) came in at $205,000 each. Yours at $85,000 means that the extra 15m2 for the third bedroom cost me over $100,000. I have as much work as you can do.
Jon
Richards estimate of $90,000 to $100,000 is OK for a single story building but would be lite on for two story – you can almost double it.
Jon
The real answer would be, Commission $7,950.00 plus GST at 10% which would be $795.00 or a total of $8745.00. Legals on sale would be approx $375 and then you may have to do some advertising to sell the property. (after all you can't sell a secret)
The answer from this site however will be screw the agent don't pay any advertising and do your own legals.
Sorry in advance for my sarcasm.
Jon
I have been reading this post with interest since it was first started and from what I can see there is one group of people that seem to have been totally ignored during this hate session on Tradies.
WHAT ABOUT THE MONGREL INVESTORS WHO WANT – AND EXPECT – EVERYTHING FOR NOTHING. WHAT A PACK OF VULTURES.
KA010, In order to answer your question, there is more information required. Are the units on one level or are they two story? or are all of the units on the ground floor? If the complex is two story or more then I would suggest that the exercise is really not worth persuing as from past experience of this concept, I have found that the courtyards are rarely used and do not add to the value of the unit. On the other hand, if they are all ground floor units with direct access to the courtyard, it will definately add value to the units.
1) Can the common property be turned into privately owned individual backyards – Yes
2) If yes what is the best approach to take? The easiest way to do this would be by giving exclusive use of the courtyards through the Body Corporate. This would be the cheapest approach and almost as good as title.
3) If Yes what hurdles may I approach. From past experience there will almost always be someone who is not interested.
4) For it to go ahead will 100% of the committee need to agree on proposal. It will require 100% agreement of all owners not just the committee.KingB says
From what i have learnt so far you can gamble and buy an investment property by cost and return alone. or you can look at all the information, like average rent for the area, % of rentals in the area, growth in area, zoning ect ect. which is what i want to do!I probably would have advised trhat you employ a Buyers agent who would happily give all the information that you require and then some. Because they work at it every day they see many things that you will not find out till after the event – most news articles and research data is at least three months old and the opprotunity has passed.
But then I read your next statement and realised that like many others you want it handed to you on a plate.
but here is the thing, i don't want to have to pay for the information
Good luck in your endeavors.
Jon
I really can't believe the wingers and tightwads on this site. The difference of one percent on a $300 a week property is $156 a year or $3 a week.
Now before everyone jumps on me and reminds me about the "look after the cents and the Dollars will look after themselves" adage, I can't help wondering just how many uncers some of you are getting trying to save the cents.
Jon
Hi Eternit,
While it is an obvious mistake on behalf of the agent (or who ever typed the contract), I don't believe that it gives you the right to pay at settlement. I am assuming that this $5,000 is the balance of deposit for the contract and the agents duty if it is not paid on time is to get the permission from the seller to accept it. This acceptance, if given, must be in writing. The Seller has the right to decline the payment and recind the contract on breach of conditions.
You should check with your Solicitor to make sure of your contractual obligations.
Jon
Just a thought for all you guys that want to save the 8% or 9% by doing your own rental management and yet want all of the benefits (like TICA) that wouldn't exist without the dilligent work done by the Property Managers that you are now trying to do without. Talk about want your cake and eat it too. Do your own checks, that's the responsibility that you take on as managers.
Jon
Wow!!! What an interesting topic and one which is close to my heart. Given the experience that has been expressed here, perhaps now some people may now understand the plight of the (Mungrel Millionaire) Developers. When I began selling development sites in the early 90's my Developer clients could obtain a DA (Development Approval) in 90 days, it now takes our brilliant educated council almost 2 years to achieve the same result.
Anyone who has ever had to work with a Council will know that they do not employ anyone who is able to make a decision on thier own accord. All decisions must be made by someone higher up and unfortunately the person higher up has just been promoted due to their incompetence and inability to make a decision.
It is high time that our over educated over paid Town Planners are taken to task by the rate payers for their total lack of ability to plan a town and do anything more than fix bandaids to previously poor town planning decisions. If I had 10 pages I could relate so many horror stories that your head would spin – Amandas frustration is not isolated, I guess her brown paper bag was just not big enough.
Oh! did I mention don't get me started on Town Planning.
Jon
I always respect Marcs comments although we will have to agree to dissagree on his comments regarding units.
I would agree with Marc in relation to keeping you PPOR. Depending on how long you have had it and how much equity you have built into it. Selling costs will take away profit that is difficult to earn and you will never be able to replace that property for what you paid for it. It is also Cap Gain exempt at present.
Your comment – 2. We intend to invest for long term capital gain, using the strategy of buying something that needs works, in an area 10-15k from the city, sprucing up to raise equity and renting out. Depending on how much work you intend to do, I believe that the older cheaper units are a good example of reno and increase rent. Do not be put off by Body Corporate companies, they work for the unit owners not the other way around. Get involved and steer the ship, you will find that most BC companies will like having someone involved with future plans for the complex. It's actually cheaper to own a unit than a house and rents are usually higher.
Jon
Hutch says –
Ohhh Duckster
Sun in your eyes?
Is that how you invest, or live your life?
Gee that is very lame. (a lame duck ster).Hutch,you seem very quick to belittle other peoples opinions. I happen to completly agree with Duckster on his point of view. I lived at Brookfield a western suburb of Brisbane for a period of time and my main reason for moving to the East was precisely as Duckster states. Apart for the lousy road conditions in the Western corridor, the driving into the sun both morning and afternoon really takes it out of you.
JonGood on you Milly, While I do not know Richard personally, I have always found his posts to be thoughtful and helpful.
While Crashy may be knowledgeable about the Share market, I feel that he has a lot to learn about purchasing property.
The subject to sale clause is the week point in his contract. If the Seller has in fact got 3 new offers on the property (and provided that the new offers are relatively clean contracts), why in the world would anyone expect the Seller to stand by the first offer. It seems to me that so many people expect everything to go their way and have no regard for the second person.
My 2 cents worth.
Jon
Hi Eternit,
The current pace of the market in Brisbane makes Real Estate.com almost useless as properties under $300K are mostly sold by the time that they are uplifted to the site. There are and I have sold in Yeronga for under $300K.As to your question – Is it possible to find a old lowset brick house in the area for around 300K? I would not expect to see one as the vacant land value exceeds this value, however you will find a two bedroom unit in this range. I have just sold a three bedroom 6 year old unit for $345K which returns $360/week.
Jon
Hi Nicole,
As your post is about Suburbs in Brisbane, I can't see why you would be stepping on any toes. There is one area that I would add to your list and that is Houses and Units in Yeronga/Fairfield. The reason for this statement is that $70 million is being spent on the development of the new tennis centre at Tennison right next door. Mirvac have just released their first two towers and they have sold out in two weeks. It is difficult to not see a flow on effect from such a highly publicised event.Jon
Crashy,
Apart from the legal interpritations of the contract, my main concern is your statement to install another kitchen in the property. Are you aware that it is not legal to just install another kitchen in a house in Queensland? (one kitchen per dwelling). You would have to make application to council to convert the existing dwelling into flats and meet the stringent requirements that are imposed on multiple dwellings.Have you sold or got a contract on your other property? If not it may be best to just walk away and look for another house when the timing is better.
Jon
