Forum Replies Created
Thank you for the fast response. Will send you some details in the next hour or so.
Thank you for the fast response. Will send you some details in the next hour or so.
Thanks for the advice Adam, will take it on board. I understand the need to offer a good price whith such conditional terms. When doing my analysis on the deal I will account for that. The profit margin should still be more than satisfactory otherwise I will move on to the next one!
Just read a property book and in it, a developer mentioned taking out an option. I assume the strategy behind it is offer a small option fee to take property of market . Conduct due dillegence including subdivision approval and exercise option if satisfactory. If not, walk away and lose the option fee.
To those that have done this before, is my summary right and would an average option fee be a few % of the purchase price?
Anyone used this strategy on a simple two block subdivision or is the option strategy more common on the bigger deals?
When appying for subdivision approval during settlement, I assume you would need vendor to sign application. Is this correct?
I would appreciate any thoughts / advice.
Regards
Markus[biggrin]
Thanks Michael for the advice. Great to read your posts as you are a seasoned developer.
Will give council a call, find a surveyor specializing in the area and take it from there. I will definately allow for possible delays in my scenario / sensitivity analysis.
Mck – Thanks also. Will search them out in the development forum and ask. Also have a few developers as clients ( I do foundations ) so I will ask a few of them also.
Regards
Markus
Re: Books on property development,
I just read Ron Forlee’s “Intelligent guide to Australian Property Development”. Found it very informative and well worth the $30.
Believe he has a new one out re: a step by step guide to prop dev.
Cheers
Markus
Thanks for the info Terry.
Hi,
I attended Steve’s Masterclass in Brisbane and loved it. I guess whether they are worth it depends largely on whether you use what is learned to improve your investing. A succsessful deal could pay for a seminar many times over.
I am weary of presenters getting people excited and then upselling a much more expensive product or seminar at the event. I would always take the info home and think it through when I was not on an emotional high. Best wishes
Hi Lea,
I wish you well whatever you decide. I am from Adelaide and planning my first investment property purchase. I work in the building industry and have worked on many developments in the “trust” areas. The old trust homes are being bought,buildozed, split down the middle and two courtyard homes built. Maybe explore the possibilty of subdivision in the future if the land size and council allows it. Not advice, just an idea I am exploring myself. Best wishes
Markus
Hi All,
I am currently researching the possibilty of buying and renting out on a per room basis in SA.
Do most investors who do this pay for electricity, water etc themselves and factor into per room rent? I would imagine this is the simplest way. Any thoughts are greatly appreciated. Best wishes
Markus
Hi Sue,
Yes I remember you. Have your card in front of me. A JV could be a possibilty. Have a few things to do ( get house ready for valuation, setup company/trust etc) before I could do anything realistically so I am working hard on doing that but I am doing my research at moment. Will email soon or feel free to contact me.
Regards,
Markus
Was at Masterclass in Brisbane and keen to try a reno and sell within 12 months and possibly part fund a long-term buy and hold.
I understand many use the company as trustee for trust setup. Is it common for people to use the company to do short-term projects such as renos or developments or should this be a strictly ” no trading company ” when it is acting as a trustee?
Should short-term projects done in a completely seperate structure?
Would appreciate anyone’s thoughts. Best wishes
Markus
Thank you very much. Will sit down with mortgage broker and discuss best way to move forward.
Markus
Thank you for clearing that up. Will help me in my planning. For info house is worth $270 – $300k. Loan is $130k. You can only borrow max of 80% of equity I believe so I may even have more than $100k.
I work in building industry. My plan is to buy one house, do a cosmetic reno and either rent out to keep or if market is ok sell. Is a line of credit most suitable or are there better products these days? Appreciate your help
Markus
I was at Brisbane Masterclass too.
Is property in question near university, TAFE or hospital? If so worth exploring possibility of renting to students/nurses on a per room basis to boost income. I am exploring that option down here in Adelaide.
Best wishes
Markus
