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use http://www.pricefinder.com.au they have free 3 day trial which will allow you to down load this contact information.
I’m currently reading his book. Much happier paying $25, rather than $5k+ for his course.
You may not need to build at all to do this deal. There is often no greater profit in building the extra house than there is in subdividing and selling the land. Even if there is a greater profit, if you could do the deal on your own without building, the profit margin you retain is likely to be higher than splitting the profits with someone else.
I’m attending one in September for 4 full days in San Antonio. Max group size is 12. They take you through all of the legals, accounting, understand the types of deals they do etc and show you around. I’m happy being in a group this size for this length of time. I am then going to do my own research for another 9 days in 2 other markets.
Definitely won’t get a quote without plans.
Tell them what inclusions you want to have, aircon throughout, stone benchtops, construction materials, one or two storeys and ask for a per sqm rate on a turnkey basis for the build itself. Then make a further allowance for the civil works, including any retaining walls, stormwater retention tanks, fencing, driveway, letterboxes etc.
Some of the key things to watch out for when choosing the right block include:
– A gentle slope towards the road is ideal. This will keep your costs down when dealing with stormwater as it flows naturally towards the road. Too steep however and the costs will escalate to build retaining walls
– Look at the 1 in 100 year flood plan and make sure the property isn’t within the flood zone
– Try to avoid blocks with the sewer line (or other easements) running straight through the middle of it.
– Consider the placement of power poles when positioning your driveway, you dont want to have to move a power pole. Watch out for anything else which will be impossible to move to make the block useable, i.e. a bus stop outside the property.
– Find out if your council are tree huggers and what their rules are. If they are tree huggers, you may need to engage an arbourist. If the council are tree huggers and there is a 100 year old massive tree in the middle of the block, you may not be able to remove it. This can significantly impact the value of the block.You may find that it is actually a better option to go single storey with a smaller build due to the difference in building costs between one and two storey. This will also depend on the setbacks and FSR.
Sounds like a great deal for you.
If your business partner has the experience in these suburbs, then they should understand the council costs.
They vary greatly around the country. In Gladstone where I am developing, the council costs are approx 5 times what they would be for the same development in Melbourne.
There will be many councils in Perth. Which one are you dealing with?
By the sounds of this post you have no experience as a developer and this is likely to be too big a project to start with. I would suggest starting smaller.
At least go for 2 bed 2 bath. 1 bath devalues its rental potential significantly.
Mackay is my next safe boomtown pick
4×4 is great. Rent it out to corporates fully furnished for a great yield.
If it is a newbuild, the council won't have allowed it to be built in an area which is subject to flooding (in theory at least).
I highly rate Flynn, he was providing fantastic analysis on Gladstone being a boom town in 2008/2009. His articles in YIP magazine are the reason I invested there early.
This is his company http://www.omegainvestments.com.au/free_articles_and_reports.html
The agent had an offer that the bank was willing to accept, that was higher than your offer. Of course they are going to accept it and take their commission. It seems you should have offered more for the property initially in order to secure it below market value.
They were saying on one of the property investing shows that Campbell Newman’s government voted against it when they were in opposition, so the chances are slim to none.
The best commentary I have seen on the situation in Moranbah has come from Results Mentoring….
Housing Supply Risks
Prices and rents in mining towns are driven up when there’s a shortage of available housing compared with the demand for housing in the town.
Rents (and property values) will stabilise and possibly fall if new rental accommodation is made available at a faster rate than the rate of population increase in the town, leading to an over-supply.
What could cause a significant increase in the housing supply in a mining towns? An obvious possibility is the development of a new housing estate, or a large scale development of units/apartments.
Some mining companies are even building their own houses – either for the purpose of accommodating their own staff, or as a required contribution to community housing needs. For example, as a condition of approving the $4 billion Caval Ridge Mine near Moranbah the Queensland State Government required the BHP/Mitsubishi Alliance (BMA) to build 400 new homes, with 160 of these due to be provided in Moranbah by June 30, 2013.
But the dynamics of mining towns give rise to another, less obvious way in which the supply of rental housing may rise all of a sudden…
Remember that not all housing in these towns is already owned by investors – a reasonable proportion is currently owner-occupied. An influx of investors paying premium prices can result in home owners ‘cashing-in’ by selling their property to an out-of-town investor, and then leaving town – suddenly increasing the supply of vacant properties for rent.
Moranbah, for instance, became a ‘flavour of the month’ among mining town investors late last year. The supply of vacant houses for rent has since substantially risen in a short space of time, at least in part due to the transfer of a large number of houses from home owners over to investors (with the former home owners then leaving town rather than staying back and renting). Supply appears to have run ahead of rental demand in Moranbah, and there may be a lag before the available supply is soaked up.
Rental Market Manipulation
With the rate at which rents have risen in many mining towns over the last couple of years, it’s hardly surprising to see some of the bigger miners looking for ways to contain the substantial accommodation costs involved in housing workers in these towns.
In some instances it can actually be cheaper for a mining company to fly personnel in at the beginning of a day, and fly them out at the end of the day, than it is to rent properties in the town. Constructing temporary accommodation ‘villages’ can also be more cost-effective for a mining company than leasing established houses.
Either option helps reduce the demand for rental accommodation in the town, taking away some of the pressure on rents.
We can see these approaches reflected in moves by BMA last year where pressure was put on the Queensland State Government to allow a 100% Fly-In/Fly Out (FIFO) arrangement for the huge Caval Ridge Project, and to approve a 2500 bed accomodation village to service many of the FIFO workers.
There’s also the potential for large mining companies to use their economic ‘muscle’ to directly influence rents. For example, there are anecdotal signs that BMA is currently refusing to sign up new leases at the current high rentals in Moranbah. Given the commercial to house employees and contractors, it’s almost like a ‘staring match’ has begun between BMA and the landlords in Moranbah, and we’re waiting to see who ‘blinks’ first!
I hope they renovated them before onselling
Developer or renovator?
What do you think they would do with your unit that will significantly increase its value? Could you do this instead and then sell?
Terrible name, given what happened to Baring’s Bank, wouldn’t inspire me with confidence.
I am currently working around similar easements.
An experienced builder recently advised that it is possible to encase the sewer line in concrete instead of moving it. This is likely to be a cheaper option.
What a stupid idea and a certain way to crash the value of property in the complex as all investor owners are forced to sell immediately…. Like the Las Vegas property market wasn't bad enough without this.
Did you get a chance to vote?
Maybe you can do a rent to own deal with your tenant, then there is no issue
Including project management that sounds good.
