Forum Replies Created

Viewing 20 posts - 21 through 40 (of 146 total)
1 2 3 4 5 6 … 8
  • Profile photo of KeyStrategiesKeyStrategies
    Member
    @keystrategies
    Join Date: 2011
    Post Count: 155
    June 20, 2012 - 7:13 pm
    Nigel Kibel wrote:
    It comes down to doing your own due diligence. As an example if you buy a house and land package in an outer area of any of our major cities the built in commission is around $30,000. So the next time you are told that its a good investment because it has land think again. The only reason they are making this advise to save tax lol is for the $30,000

    Nigel – well said and I think by your comment you have a very good idea as to who one of the Promoters is. And the Buy and Hold Strategy (currently Buy & Hope strategy) only works when there is Capital growth in the market and in some cases this will be a long time coming in some of the outlining  suburbs being promoted. Buying just to reduce tax is not investing.

    Cheers

    Profile photo of KeyStrategiesKeyStrategies
    Member
    @keystrategies
    Join Date: 2011
    Post Count: 155
    June 20, 2012 - 7:03 pm
    itsandrew wrote:
    I don't know enough about the way new homes are sold to draw conclusions but is it the profits or transparency that people are objecting to. Everything from lettuce to motor vehicles gets marked up from cost price and wholesale price for the public.  Why not with property?

    Andrew its a number of things – Not so much Profit margins but Yes Transparency, Ethics and levels of Integrity plus the value of the service provided.

    Scenario 1 – Commission Loaded on Top – this has been going on for the last 20 years and I can't believe its still happening with the knowledge of the Lenders. But its where a Property Marketing Company (PMC)  just adds a commission on top of the developers asking price. I am aware of a Queensland company that did this back in 2010 while running a seminar for around 200 people they approached numerous builders in Sydney and asked to have $20K added to the Builders Price as commission which they then flogged at the seminar to a captive audience over 3 days under the guise of an "Educational" Experience. Its called 2 tier marketing. Typically its the one stop shop approach where they have the inhouse experts – Solicitor, Valuer, Financial Planner, Mortgage Broker and everyone is in on the deal. So if the investors had actually done some homework themselves they could have easily approached the same companies and bought the properties for at least $20K less. And in most cases there are double commissions paid as there is also a marketing agent or Builders Sales person that receives a commission on the sales.

    Scenario 2 – The Loaded Commissions – This is what the article is referring to – its similar to the example above but on this occasion the Developer has actually loaded a High commission into the project for the PMC – typically $35,000 to $50,000 as opposed to a standard Real Estate Agents Commission of around 2% to 3% of Sales Price ($10 – $15K on a $500K property). The position here is that the "Advisors" are selling the property to the investors to receive the High commissions while portraying to be looking after the investor they are Not acting in the interests of the investors at all – essentially if the PMC's where not involved the property prices could be reduced by thousands of Dollars and in some cases they are not valuing at Purchase price but due to the One stop shop approach they are being sold and financed generally using equity from other properties. If the investors then need to sell these properties in a hurry they are not selling for what they paid – Once again its Buyer Beware – Get Educated.

    To be continued later

    Profile photo of KeyStrategiesKeyStrategies
    Member
    @keystrategies
    Join Date: 2011
    Post Count: 155
    June 19, 2012 - 5:22 pm

    Without naming names – there are some Property Marketing Companies (PMC'S) doing deals with Developers at different levels via different entities. So a PMC enters into an Option agreement to buy a property from a developer at a Bulk rate price and loads anywhere from $20 to $50K into the price. The "retail price" is then put out to the public and the PMC markets the properties at the retail price also – So while the PMC claims it only receives standard real estate commissions, which is true (at one level) the PMC also pockets the difference between the option price and the retail price, on the sale .

    Generally Its done to allow the developers to claim presales in order to obtain finance to fund the project and gives the PMC a bigger chunk of commission while they appear to be charging standard real estate fees.

    It seems to me that its just a smoke and mirrors illusion for the public – Is it Legal ? I suppose so – Is it Ethical or Moral well I suppose that depends on the level of Ethics and Morals of the people behind the PMC's – what more can I say – people do interesting things to make money.

    Would you buy a property knowing that there was actually $30,000 to $50,000 commission built into the deal for the Advisor ?

    Profile photo of KeyStrategiesKeyStrategies
    Member
    @keystrategies
    Join Date: 2011
    Post Count: 155
    June 19, 2012 - 5:03 pm
    HJBH wrote:
    Hi guys, saw this article http://www.cqnews.com.au/story/2012/02/22/millionaire-buying-up-mining-town-bit-by-bit/ about a Sydney business man buying up houses in Dysart… was wondering if anyone knew who this guy is? and if he is still buying up after Norwich Park? thanks for your help, this is a great resource for investors, well done!

    The answer is YES and NO and its not me! Why do you ask?

    And Josh – This guy is smart he runs more than one entity

    Profile photo of KeyStrategiesKeyStrategies
    Member
    @keystrategies
    Join Date: 2011
    Post Count: 155
    June 19, 2012 - 4:54 pm
    band-aid wrote:
    No, just a first time user & have been to one of dean's information nights. As most of central QLD has been.

    It seems that you yourself know more than the average person in dealing in property & tax?! Maybe shed some more light on what your commenting about? I'm very interested. Regards.

    Since you are interested here is the short answer – without naming names – there are some Property Marketing Companies (PMC'S) doing deals with Developers at different levels via different entities. So a PMC enters into an Option agreement to buy a property from a developer at a Bulk rate price and loads anywhere from $20 to $50K into the price. The "retail price" is then put out to the public and the PMC markets the properties at the retail price also – So while the PMC claims it only receives standard real estate commissions, which is true (at one level) the PMC also pockets the difference between the option price and the retail price, on the sale .

    Generally Its done to allow the developers to claim presales in order to obtain finance to fund the project and gives the PMC a bigger chunk of commission while they appear to be charging standard real estate fees.

    It seems to me that its just a smoke and mirrors illusion for the public – Is it Legal ? I suppose so – Is it Ethical or Moral well I suppose that depends on the level of Ethics and Morals of the people behind the PMC's – what more can I say – people do interesting things to make money.

    Would you buy a property knowing that there was actually $30,000 to $50,000 commission built into the deal for the Advisor ?
    http://www.hotspotting.com.au/article/2332-investors-being-robbed-blind-by-advisers-

    Cheers

    Profile photo of KeyStrategiesKeyStrategies
    Member
    @keystrategies
    Join Date: 2011
    Post Count: 155
    June 17, 2012 - 10:37 pm
    APWPG wrote:
    HI Michael Andjelkovic ,yes please can i have your builders contact Cheers

    APWPG – sent to you by PM and SMS

    popelich wrote:
    Hi Michael,how many units are in the builders pipeline for Moranbah?Cheers

    This particular Builder has over 100 he tells me – As far as I can calculate  from a couple of months ago there were close to 1000 dwellings in the pipeline comprises 4 x medium density unit blocks of around 100 units each, over 200 knock down rebuilds, I don't know how many backyard additions and another 300 plus blocks of land about to be released with some duplex sites. So supply of accommodation in Moranbah will increase over the next 12 to 18 months for sure – Are you aware of anything else or different?

    Profile photo of KeyStrategiesKeyStrategies
    Member
    @keystrategies
    Join Date: 2011
    Post Count: 155
    June 15, 2012 - 12:12 am

    What was the outcome ?

    Profile photo of KeyStrategiesKeyStrategies
    Member
    @keystrategies
    Join Date: 2011
    Post Count: 155
    June 15, 2012 - 12:10 am

    Hi Everyone

    I know a builder up in Moranbah that has over a dozen houses he has to move/demolish in order to build new units on the sites.

    Is anyone interested in relocating any houses up in the area? – He has advised me you can have them for Free it you want them otherwise they will be demolished and taken to the tip as rubble.

    Send me a PM if you are interested and I will give you his contact details

    Cheers

    Profile photo of KeyStrategiesKeyStrategies
    Member
    @keystrategies
    Join Date: 2011
    Post Count: 155
    June 14, 2012 - 11:59 pm
    Jamie M wrote:
    Hi Marie

    I haven't heard of him.
    Is the price of the property inflated compared to similar properties within the area? What does your accountant say about the proposed financed structure?
    I can tell you're being cautious (which is good) – because you wouldn't have stumbled across this forum otherwise. Continue to do your research and don't jump into anything until you're 100% certain.

    Good Advice Jamie

    Profile photo of KeyStrategiesKeyStrategies
    Member
    @keystrategies
    Join Date: 2011
    Post Count: 155
    June 14, 2012 - 11:57 pm
    band-aid wrote:
    He uses the standard REIT commission which is paid by the builder and land developer. 5% for the first 18k, the 2.5% for everything over.

    Interesting comment from a new single post anonymous user- Perhaps Barings might be charging the REIT commissions but  I am wondering what an acquistions manager for JLF Group is doing running his own sales seminars? Then I started wondering whose stock is Barings selling and how much commission is actually built into the deal ? WHY would I wonder about that you ask?  Well I am aware that some Property Marketing Companies have been acquiring land from Developers in NSW for a number of years now and securing/ Loading/Building in much higher commissions using property option agreements rather than acting as agents and charging the standard real estate industry commission scale. And why would it be any different in Queensland the home of the white shoe brigade. Interesting Isn't it? – but then "Its just one of the things they don't tell you about property Investment."

    Interesting Questions Or maybe its the cynic coming out in me after 20 years of witnessing the rort's that have gone on in the Property Investment, Building and Property Development industries.

    Cheers

    Profile photo of KeyStrategiesKeyStrategies
    Member
    @keystrategies
    Join Date: 2011
    Post Count: 155
    June 14, 2012 - 8:45 am

    Hi David

    To answer you questions

    "Are there a lot of company rentals?" – I can't tell you – you are best off speaking to the local agents – I have been leasing out my properties to private individuals.

    "What is the potential for the next 20 years ?"-  Mate how long is a piece of string? I believe there is good long term potential in the area but things change year to year, it will depend on a number of variables including how the mining activity is during that time. I believe the next couple of years will be OK due to the amount of construction work around the area in both the  mines and in other civil projects that are around – EG Freeway extension, rail duplication and Shopping centre expansion to name a few.

    Do your Homework, buy well and you will do well.

    Cheers

    Profile photo of KeyStrategiesKeyStrategies
    Member
    @keystrategies
    Join Date: 2011
    Post Count: 155
    June 14, 2012 - 8:26 am
    Amit Thaker wrote:
    KeyStrategies, What you are doing in something I aspire to do in near future. I would love to know your journey.

    Amit – I shared a part of that journey in my  3 Workshops that I presented in Melbourne at Steve McKnight's MegaConference a couple of weeks ago – I actually had one workshop recorded and I am just reviewing it before sending it off for production. We can talk about it at the Parramatta meeting next Monday.

    Cheers

    Profile photo of KeyStrategiesKeyStrategies
    Member
    @keystrategies
    Join Date: 2011
    Post Count: 155
    June 14, 2012 - 8:17 am
    Amit Thaker wrote:
    Hi Michael, Parramatta RSL sounds good to me. I will come and see you before or after your speech. 3rd Monday of this month could mean Monday 18th June (depends how you calculate it). BTW, what company is running this or Are you THE company? See you then. 

    Hi Amit – yes its the 18th of June – I am just a guest speaker this group is run by Results I believe – The mentoring group that was set up by Steve but is now separate. I have attended a few meetings it is run by volunteers who have do the course and has around 20 people attending on a regular basis.

    Look forward to seeing you there

    Profile photo of KeyStrategiesKeyStrategies
    Member
    @keystrategies
    Join Date: 2011
    Post Count: 155
    June 13, 2012 - 12:23 pm

    My creative Project was a couple of years ago. I purchased a large corner block with a DA for 2 x 3 bedroom houses on it. I knew I could better and put 2 x 4 bedroom Houses on it as the previous owner had not really used the best designs for the project.

    The twist came when I really sat down and figured out that I could put a 4 bedroom house and a Duplex on the site – it was a slightly longer process but the extra profit was worth it. So I ended up doing a 2 lot subdivision, building a 4 Bedroom house on one lot and a Duplex on the other being 2 and 3 Bedroom – I tried for 2 x 3 bedrooms but could not quite fit it on.

    That and the former School site I purchased and did as a JV which we turned into 5 individual lots and then had 10 townhouses approved over 4 lots in 2 stages of 4 units on 2 lots and 6 units on the other 2 lots would rate as my most creative to date. The 5th lot was sold to another developer that put 3 townhouses on it. It took 18 months from acquisition to getting the final approvals but a nice project.

    Profile photo of KeyStrategiesKeyStrategies
    Member
    @keystrategies
    Join Date: 2011
    Post Count: 155
    June 13, 2012 - 11:44 am
    DWolfe wrote:
    Lol, 6 mths, I wish!

    2 years on the one project with our VCAT hearing this Friday. I love developing! Everyone loves councils!
    I think the red tape is really holding back a lot of development. I'd love to know what councils people are having speedy success with.
    Michael, how is the Hunter going in general with developments and subdivisions? There seem to be a few blocks in Cessnock that are being touted as development blocks that may be undergoing rezoning. What's your take on this?
    Cheers D

    Hi D

    I agree with you – I must say that this DA was not my longest I have had one go 14 months and then on the plus I had one go thru in just on 6 weeks.

    I was in Cessnock yesterday and picked up some info on a possible duplex site and a 3 acre site with potential to subdivide into 10 or 12 lots. There are parts of the Hunter that are very short of land Singleton for example. Muswellbrook has land but its primarily controlled by one developer that is drip feeding it to the market to keep his prices up – smart business move on his part. Down around Maitland you have a few larger players like Mirvac and Stockland with large land holdings and now Walker Corporation has bought into the area also – so supply is there but its also controlled by these players. Cessnock on the other hand seems to be moving along – I am looking at the town with interest to see whats about – I have 2 projects on the go in the Hunter and I might go back up to Qld once BHP sorts out its issues with the unions. Keeping my options open at present.

    Oh and lots of work on the new Freeway – its moving along except for the rain delays and work still happening on the rail duplication.

    Cheers

    Profile photo of KeyStrategiesKeyStrategies
    Member
    @keystrategies
    Join Date: 2011
    Post Count: 155
    June 13, 2012 - 10:02 am
    jimmcintyre wrote:
    councils frustrate the livin daylights out of me.

    Jim, I know what you are talking about it just took 6 months for my builder to obtain a Development approval for one Duplex and I have another one in council  since February now waiting for the engineer to review it when We have fixed EVERY issue they raised a couple of weeks ago and it's still sitting there. They (Plans) are supposed to be out within 42 days – what a joke! And then the council is screaming for rental accommodation due to the increase in workers.

    The joys of being a Property Developer.

    Profile photo of KeyStrategiesKeyStrategies
    Member
    @keystrategies
    Join Date: 2011
    Post Count: 155
    June 13, 2012 - 9:44 am

    Amit

    There is a regular monthly meeting of Property Investors at Parramatta every 3rd Monday – I am speaking there next week 18th June on achieving Success from Subdivisions – which is based around the workshop I did at the Mega Conference in Melbourne.

    Location Parramatta RSL – Hunter Room, cnr Macquarie and O’Connell Sts, Parramatta. Free parking opposite the club in covered car park.
     
    ate 
    Time 7:30pm – 9:30pm
    Cost $10 Entry Fee

    Profile photo of KeyStrategiesKeyStrategies
    Member
    @keystrategies
    Join Date: 2011
    Post Count: 155
    June 13, 2012 - 9:07 am

    With the announcement that a new 3200 man camp has been approved and rental vacancies still high seems that the gloss has gone off Moranbah at the moment. Still there is lots of activity happening up there.

    Profile photo of KeyStrategiesKeyStrategies
    Member
    @keystrategies
    Join Date: 2011
    Post Count: 155
    June 13, 2012 - 8:57 am
    christianb wrote:
    The smallest lot we are working on is a proposal for 15 dwellings on 120m2 in the CBD.We are also working on a two lot subdivision on 240m2 in the inner suburbs.

    Christian'

    What city are you working in?  – these are really small sites

    Profile photo of KeyStrategiesKeyStrategies
    Member
    @keystrategies
    Join Date: 2011
    Post Count: 155
    June 13, 2012 - 8:52 am
    jonodick wrote:
    Hi Michael I was at the conference in Melbourne last week and unfortunately didn't get to your presentation. There were a couple of times over the weekend i had to choose which talk i was going to listen to…this time i might've got it wrong. I'm looking at places to carry out small sub-divisions around the Hunter region at the moment. If you have any info i missed on the weekend you think might be handy for me, i'd appreciate it. Failing that, i'm putting a couple of offers in very soon, so if i come across any issues i'll let you know John Dickson Dicksons Construction Pty Ltd

    John

    I know what you mean – I was up against some good presenters on the day and very pleased to say i had a full room at each of my workshops. I am happy to advise that I recorded my last presentation – having done 3 back to back on the Friday – I am in the process of producing a CD and DVD which I hope to have available in a few weeks time. Happy to speak to you and see if I can assist with your Hunter projects.

    Cheers

Viewing 20 posts - 21 through 40 (of 146 total)
1 2 3 4 5 6 … 8