Forum Replies Created
I think the price has been left off deliberately to force you to enquire or leave your email details…
Interesting that the office is in HK.
I heard that it was Canadian money.As far a finding anything good, ther was plenty that looked very interesting, but more homework is needed before making a commitment.
Right now, there is a reasonable return to be made in Aus (especially WA ) without the risk level attached, albeit at higher tax penalties if you decide to take your profit.
Mei, consider Batam if you are interested in Indo. its a bit closer to Singapore, and you can purchase in Rp but resell is Sg$…. just an idea.
Anyway, PM if you are interested in more details on Bali prospects…..am happy to share.
kp
Ouch again !!
kp
Well,
Have just got back from over there where I was looking at land and property.
Apparently the ownership laws for foreigners have recently been changes, to encourage and promote foreign investment.There are various pros and cons with investing in Indonesia which I am still working through.
Having said that, I found that there are lots of ‘ex pats’ who are currently investing and have invested over there, inclding Canadians, Dutch, Germans, French, British, Japanese, Taiwanese, etc.
There seems to be numerous tax advantages to investing over there, and the prices I was quoted were extremely reasonable.
The only thing that kept ringing in my ears was what a jewish solicitor said to me many years ago with regard to investing in Indonesia.
All he said was ‘soverign risk.’Bottom line is that high risk = high return, so in the end it will depend on your risk profile.
But without wanting to talk the place up, I would say that it is a hive of construction activity and very very busy.
This was one project I was introdued to by the owner of the land:
C151.net
complete with helipad….kp
There is the other grey area of GST.
You may be liable for gst as well as cgt upon the sale of the block.
Puts a huge dent in your profit (assuming you declare, and pay the dual taxes, and/or do not cop an ATO audit if you decide not to declare the profit)I would be looking at the market rent you could expect to get for a house down there, vs what it cost you to ( house plus land cost) build and complete a house, ready for occupation.
If it is a reasonable yield, then I would consider building and renting, and tapping the equity as previously suggested, for further investing.Bear in mind that if your intention was to build a rental property on the land, then you are within your rights to claim the interest incurred to date on the land only, even though you have not generated any rent from the property yet.
This can be a huge windfall in the form of a tax refund.
kp
I received a fax from Celebration Homes Sale rep today who has just started his own business where he is offering complete home finishing: ($20,000 incl GST)Carpets to all bedrooms, lounge.
Floor tiles, living areas, kitchen
Internal wall painting
Light fittings installed
vertical blinds to main windows
landscaping including retic, roll on lawns, plants mulch
Brickpaving including council crossover
2.5 hp split system reverse cycle air con
Cleaning of property after works are completed.Full written itemised quotes provided.
If you are overseas or interstate they will do final inspections and property handover on your behalf.
This is based on a 600 sqm block and 210 sqm home.
Any thoughts on this and price??
Thought I would bump this post.
In hindsight, this appears to be a serious bargain !Marisa are you on the air, and can you PM details of the rep to me pls ?
As well as a contact at Celebration for a house plan/price ?
I have bitten the bullet with Singleton and am ready to organise the building ….Thanks
kpHey crashy,
Depending on which state you are in, the laws may be different with regard to a periodic lease.From memory, in WA for example, the tenancy agreement states that the lease reverts to a periodic if a fixed term lease is not renewed at the end of its term.
Under the periodic lease, either party can give notice to vacate by giving 14 days notice( or is it 21 days?).
If your agreement has a similar clause, then it sound like they do not have a leg to stand on…alternatively if they have not informed you of your rights as a tenant, then a magistrate will favour a tenant over an agent.
Especially if you have paid the rrent on time, and looked after the property.
Would be pretty hard for them to evict you imo…kp
Hi django,
Do you have a contact number for them ?Sounds like a reasonable price..
kp
You seem to be aware of your rights as a tenant.
Seems like the agent might be trying a bluff.Call them and advise them of your rights under the tenancy laws, and see what they say…
Seems like a hostile reaction on their behalf….are you sure there is not more to the story than you are letting on ?
Anyway…sounds like they don’t have a leg to stand on.
It will take a while to enforce an eviction order and get a sheriff to evict you if it comes to that.Based on the attitude of the agent, I hope you retrieve your bond OK !!
kp
Looks like the smart money is bailing out of the US before their curerncy collapses.
Running trillion dollar defecits is no receipe for success, and is not sustainable.
The day of financial reckpning must come…its not a question of if…its a matter of when.kp
Hi Leo,
Your last post pretty much hit the nail on the head…
You have to start somewhere and preferably start small.The multi million price tag may look scary but when you divide it between 5, 10 or even 20 investors, its no different than a typical residential property sized investment.
So two points…jv or syndication is the way to go, and looking a little further out from urban areas is also the best option.One last thing as per P Spann’s post, by having a dweling on the land, or even running cattle by agistment ( if you don’t want the hassle of looking after them yourself ) you are able to generate some income off the property, thus allowing you to claim all the costs in holding the property till it is ready for development.
Its not just theory…it does work and is a feasible strategy to persue, if you are inclined in that direction..
kp
Hi tony lau,
Typically, the rental return in Perth is usually lower than you would get in other capital cities around Aus.
A yield of between 2.5 and 4.0 % is pretty standard.I would expect that you would get a better rent return in Qld.
An alternative would be to consider commercial property where you could expect a yield of between 8% and 10%Having said that, there are pos cashflow properties in WA, but they are in the regional areas and mining towns.
Basic laws of risk vs return apply here…..so it depends on your risk profile as to how you decide to proceed.
kp
Exactly Gross!!
The process of subdivision is no different ( even in WA !!)
You can’t go ahead and start a second construction without approval. Approval has to come from the local council. They will not give approval till conditions of subdivision, connection of services, etc, are met.
No approval = no building licence = no construction…kp
Hiya Marisa…
The $20k cost looks reasonable imo…effectively if you ask the builder to do all these extras ( IF they are prepared to do them, that is !!) then they have to levy the cost with their margin of 20%.
Everytime I have asked a builder to qoute these extras they have advised that I am better off organising it myself for that reason.
Either they don’t want the hassle or organising it…or…Bottom line in what I am trying to say is that when I have completed all these extras to finish off the house, it costs in the region of $20k anyway…and that was with me doing the internal painting. So if your rep is offering to do it for that price, it seems half reasonable!
Only things I would add to this:
Cleaning is done by the builder before handover anyway, and you need to add a letter box and a clothes line to the list..Back to Celebration Homes….is the 256m2 house area living space only, or does it include garage, alfresco, etc. ie total area under main roof or just living space ?
And what is the time frame they are quoting before they will go to site and pour the slab, and thereafter, how long to completion and handover ?
The last two I built was with Ventura….and I am keen to build with someone else ( enough said..)BTW…I took up your suggestion re..Singleton…
The agent offered good settlement terms so it looks like I will be going ahead and building there soon..kp
Thanks Bob & Gross for clarifying…..
Reason for the query was that I am lookimg at something similar on a land subdivision…where total cost ( aquisition plus developemnt ) is in the area of 1.0 to 1.25 mil and gross realisation looks to be 2.24 mil thus lvr will be under 60%
Just going through the exercise of whether presales will be required before finance can be set..
kp
Have a read of the post by Karina on Somersoft….she did a lot of her due diligence over the phone and with photos, and in the process has bought up half of Geraldton.!!
Her NETT equity is up well over 1.0 mil as a result of her efforts.( buying sight unseen, as long as the property fitted her criteria )
Of course it has to be better if you can view the property, but it is not always necessary to do so.
It is possible to build up a relationship with someone who can provide an accurate and honest appraisal of the property and do the viewing on your behalf..
kp
Is that a typo?
Do you mean lending of $7.5 mil and not $750k ?Based on the original post: gross is $9.0 mil, and lend is $7.5 mil, so isn;t this an lvr of 83% ??
Hi Relly,
I am not sure how your client managed to get approval to construct two dwellings without approval for either green title, survey strata or strata subdivision ??
Where did the approval to construct come from ??The last two that I completed in Perth, were for green title subdivision, and it took no longer than 3 months to get the approval back from DPI.
Strata subdivision approval through the local shire is quicker.
Why will it take 8 months in your case ???If subdivision approval will take 8 months, why would you wait till end of construction before going ahead?
Something does not sound quite right from what you are suggesting.
Sorry for all the questions, but from my experience with subdividing and building…it does not seem to make sense.
kp
Anette,
There is a clause in the management agreement with the agency that lets you get out of the contract.I do not recall where exactly it is, but it effectively says that if they are not performing their job the landlord can terminate the contract.
It has a number of clauses which allow either party to terminate, for non performance, by mutual agreement, etc, etc.Have a read of the management agreement and see if you can find it.
Otherwise, contact REIWA or REBA and get some information from them.Hey Gross,
When you say full lend are you saying you are borrowing 100% cost for land and construction?If this is the case, are you providing something else as security against the borrowings, or is the final value of the completed project sufficient security for the lender?
kp
Hey Marisa,
Can you advise what was included with the Celebration house??
ie…internal paint, floorcoverings, dbl remote l/u gge, etc, etc.Regarding your query with the landscaper….quite a few of the builders include everything on a turnkey basis…( including landscaping), would this not be a better way to go ?
costs more, but saves you the time and effort in having to organise all the bits at the end ??
kp
