I saw this one in the building which had a great return.

http://www.gavagnagroup.com.au/pol/property/search.asp?f_propertyID=852507&xsl=2604&f_st=1&f_ct=1&f_ps=2

Not sure if that was a sustainable return long term though and financing would be difficult as only 40 sqm.

Great thanks Terry, helpful as always.

If they are going to be relatively cheap units, you may want to look into NRAS. This would increase your cashflow. It is normally only available for large scale developments for cheaper housing, so this could fit in perfectly. It could potentially give you a guaranteed cashflow with significant tax benefits and no vacancies.

Doesnt matter now, the Senate stopped ETS.

dnh, positive cashflow really isnt that hard to find right now, but if your goal is $250k, positive cashflow is unlikely to get it for you (unless you could consider it based on the NPV).

Lewis is knowledgable but I found him to be very unreliable. I had him prepare a vendor finance contract for me and it took him several months to write it for me. I had provided him with all of the required details for the deal up front. I was chasing him up at regular intervals the whole time and advised continually that he would have it for me later that week, or early next week and I was high priority for him.

I came within 1 day of being stuck with a house I bought for my client to purchase off me, as my client would have missed out on a FHOG of $32k and would have only received $26k. My client advised me that if my lawyer couldn’t prepare it in time he wouldn’t sign the contract, which was fair enough.

Has anyone else used Lewis? I don’t intend to use him again.

This really is a fascinating concept. Interesting to note that they can offer this product in highly cashflow positive locations like Moranbah.

The only concern I have is the cashflow considerations for the building products company that doesn't have any funds coming in for the next 5 years. Surely it can't be a sustainable model?

Just from a quick look online, it appears that 80% finance is available and that you can depreciate the lease value at 10% per year for 10 years. Could be a real money spinner on a cashflow basis, especially as part of a SMSF.

Interested to hear the thoughts of others.

I tried the free trial of the site, but it is so limited it was of no use. Any idea of the cost to subscribe?

There are 2 markets there, werribee itself which is relatively inexpensive to buy into and werribee south, where the wyndham cove marina is going into. I am planning to invest in werribee south, but I imagine werribee is likely to benefit also from the development. I would suggest trying to purchase in the southern part of werribee township, as close as you can get to the new marina.