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mattnz
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November 9, 2011 - 7:33 am
I have heard of people purchasing in Gladstone being caught out unable to get finance as next to powerlines, so just make sure you do your due diligence, whether in person or through some other means.
mattnz
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November 5, 2011 - 6:09 am
I met my first one on here. Turned out we worked in the same building and did a deal together.
mattnz
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@mattnz
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November 4, 2011 - 1:07 pm
If you sold the investment properties, would it free up enough cash to do a small development?
If the development has enough margin in it (like 40-50% on costs) and the rental yield will be high enough at the end of the process, it should fund itself if you can raise the initial 20% deposit plus stamp duty etc.
Alternatively, if you have a great understanding of the construction process and can identify strong opportunities, with great returns, find a JV partner to provide the cash and share the profits. That’s what I had to do on my 2nd development to make it happen, until I can get my money back out of my first development.
mattnz
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@mattnz
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November 4, 2011 - 12:34 pm
The banks use these tools for automated valuations these days. While it may not be a guarantee of value, the banks see it as close enough to the real value that they are willing to accept it in most cases. This is probably actually more important, knowing that the bank valuation will come in at least at the purchase cost.
mattnz
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@mattnz
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November 4, 2011 - 12:14 pm
I’m on the same path as you. I am planning to be out of the workforce in 2 years. I have 2 development projects at the moment, one that should return approx $400k and another that I own half of that should return $800k. At that point I am expecting to be able to leave the workforce with enough money behind me to do what I want to do (of which development is likely to be a component).
Send me a private message if you want to discuss further (your profile won’t allow PMs)
mattnz
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@mattnz
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November 2, 2011 - 1:05 pm
I think offering more is likely to trigger thoughts that they mispriced it. An offer at full price is likely to be accepted.
I recently purchased at 20% below the real market value of a property, simply paid the asking price and took it off the market. The agents phone was ringing off the hook with around 10 others trying to put in offers.
The key thing is just to get all the paperwork signed, which allows you exclusive rights to the property.
mattnz
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@mattnz
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November 1, 2011 - 1:54 pm
What does a 100 sqm house sell for in your street and what does a 200 sqm house sell for in your street? If the answers reveal a large difference between the two figures, then the others are likely to be correct about a structural reno.
mattnz
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November 1, 2011 - 12:26 pm
Thanks Richard,
Loved the rate cut today, was loaded up short AUD and came out a big winner
mattnz
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@mattnz
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October 18, 2011 - 9:02 am
jywz99 wrote:
My house was rezoned to build five story apartments (17m high), a devolper is interested in buying my house and my neighbour's, should I sell now or not sell but cooperate with the developer to take more profit from the development?
Any other suggestions? Many thanks.
As hinted at by others, whether you sell or not, expect to have 5 storey apartment blocks either side of you in the next few years.
mattnz
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@mattnz
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October 18, 2011 - 6:55 am
Derek wrote:
Keep your neighbour in the loop – two blocks will be more beneficial to the developer and also, by extension, you.
I have also seen instances on the Gold Coast Broadwater where someone didn't want to sell. His neighbours on both sides and behind did and the property is surrounded on all sides with 5 storey building. Not a good look I tell you.
I have seen a whole shopping centre with a little house in the middle of the car park.
mattnz
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@mattnz
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October 17, 2011 - 8:42 pm
If you have family with experience in developing, learn everything you can about how they are doing it,then replicate the process yourself. It is where the real money is to be made in property. Instead of purchasing at retail prices, you are creating value at wholesale prices. You don’t need to wait for capital growth and can instead manufacture significant profits up front. It took me years to realise this, but I don’t see myself buying at retail prices again.
mattnz
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@mattnz
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October 17, 2011 - 6:54 am
I would suggest getting an understanding of the profit potential of the development. House and land value means nothing any more, you need to think of its value to the developer. Is the offer at a significant premium to what a standard house in the street was worth before rezoning? Are they offering you cash settlement or an option?
If one developer is interested, there may be many that are interested. You could get a number of them to submit offers and select the best one.
mattnz
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@mattnz
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October 16, 2011 - 4:16 am
Yes, got 62 Flinders St, happened to be in Gladstone at the right time to seal the deal.
Will send you a PM.
mattnz
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October 15, 2011 - 11:01 pm
There is still money in the deal at $900k, just at around 20% profit margin, rather than 40-50%. Huge demand as the property is in Gladstone.
I puchased under market, others with same land size and worse houses are currently selling for $450k. It sold the day after it was listed with huge interest from other developers. Another 1500 sqm block in the area with the same zoning, without a DA just sold for $1.1 million (with the house removed). There are huge price discrepencies, where some houses are sold without recognition of their development value, which makes it an ideal market.
mattnz
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@mattnz
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October 13, 2011 - 11:04 am
I think you are missing the point… I knew the answer after reading a few words “who had a renovation business closing down”…. good luck ever getting anything out of him, office of fair trading won’t help you.
You are an unsecured creditor to an insolvent business.
mattnz
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@mattnz
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October 13, 2011 - 8:15 am
They actually all lost money when you take into account the prizes they won, which weren’t included in the “profit” calculations.
mattnz
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October 11, 2011 - 7:56 pm
Please also check your database to confirm if credit card details and passwords have been compromised.
Thanks,
Matt
mattnz
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October 9, 2011 - 7:59 am
Contact Nathan Birch, he is the expert on renovating burnt out houses.
mattnz
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@mattnz
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October 8, 2011 - 1:09 am
Read this booklet to understand how you may be able to avoid GST and only pay CGT rather than income tax
http://www.bantacs.com.au/booklets/How_Not_To_Be_A_Developer_Booklet.pdf
mattnz
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@mattnz
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October 7, 2011 - 7:29 am
I havent purchased any myself,so not the foremost expert. If you get “stuck” with the property as they don’t pay their taxes, thats just a bonus. Those returns are possible without reposessing the house for non-payment.