What were you constructing that allowed savings of 50%? Did that include all electrical, plumbing etc?

Were you doing the project management yourself and co-ordinating each tradesperson to do their part?

What margin are you putting on the properties when you sell them, what interest margin are you capturing above your own interest cost and which state are you operating in?

I have looked into it and they often seem to have inflated prices. If you are able to get one for the real cost then you are getting a good deal.

You should be able to negotiate a deal where they pay to put the home back to as new condition before returning it to you. They would replace the carpets, set up the garage as a garage rather than the…[Read more]

I recently went through a similar experience, my client went to about 5 laywers and all of them were either not specialised enough to advise them, or were advising against entering into an installment contract. It wasn’t until they found a lawyer who was familiar with them that they felt comfortable entering into the contract.

I think its…[Read more]

The ones that drive me nuts are the property magazines where they show rental return based on the average purchase price for the suburb vs the average rental advertised. This always significantly skews the results. Examples that consistently show the wrong information that is not representative of the market:
Ultimo, NSW – Half the units sold are…[Read more]

Thanks again Scott,

I am looking at a very well priced project home which works out at $750 per square meter (incl. GST) for a turnkey package with many luxury inclusions. $235k for a 306 sqm home including driveway, fencing, site costs, dishwasher, 900mm oven, stone benchtops, full landscaping, ducted heating and cooling, site costs etc.

They…[Read more]

Thanks Scott.

Still unsure though, as we are talking about a newbuild rather than purchase and subdvide. If I could lock in an $80k profit at the start, from purchasing the land at less than market value, why bother building a house, just onsell the land at market value.

Surely there is more to building for a profit than that.

Cheers,
Matt

Hi all, I just found this old thread.

Can anyone tell me where the profit margin comes from in doing a new build and onselling it? What expenses are able to be removed that allows you to hire a builder and all other contractors and walk away with a profit? Are you just becoming the project manager and taking the equivalent of their salary…[Read more]

There are several kiwis here, what is your question?

Just be aware it is likely that you won’t see any of the money from the sale of the property, as I imagine that if they are cross-collateralised, ANZ will just take the money to service what is owed against the other property.

You should be seeing selling as a way to reduce debt and ease your cashflow problems, not as a way to fund your living costs.

http://www.sharedequityscheme.com.au/

Hi Richard,

What is wrong with the St George offset account? I have just set one up for my new IP so would be good to understand if there are any pitfalls with it.

Thanks,
Matt

Robert Kiyosaki also wrote a book which outlines the impacts of demographics which will cause a huge sharemarket crash as the baby boomers are forced to withdraw their investments to live off. From memory it was around 2014 that it would start as in the US they made it compulsory at a 70 years old you must start withdrawing your money from your…[Read more]

Are you sure it is legal to onsell a wrap deal? My understanding is that you aren’t even allowed to refinance the mortgage on them.

Have you asked your clients if they are in a position to buy out the contract themselves? Surely it isnt hard convincing your bank that they could afford 5% interest payments, when they are currently paying 7.5%,…[Read more]

I'm in Sydney but investing in Melbourne so am there quite often at the moment. Could look to meet up at some point.

Sounds good, where are you based?

The problem is that you are the last fool. The first fools already took him up on his offer and made their money from him, hence he is going broke.

Vic's SRO have already published the details of the new grants at $32k and $36.5k on their website. No indication of any changes to take place.

For 400k property at 2.5% that is $10k, so I imagine that would be an insult.I could recommend Richard Taylor (regular forum poster) as a good mortgage broker and I am sure he could point you in the direction of a great solicitor there.Personally I think it wouldn't be wise making unconditional offers.

You could always buy a unit without a car space and lease one till one comes up for sale.