“If you listen to the experts, they say there is good bargins from Jan – July 2005”

Define “experts”?

— Michael

First rule when buying OTP is to never go with the sellers recommendations, i.e. lawyers, references, etc.

In terms of legal advice, I am located in the United States, and although my company has legal representation in Australia, they are more geared for representing corporations.

What I suggest is contacting one of the more established firms…[Read more]

“if there were faults – is the vendor obliged to fix these before completion?”

– This provision should be included in the terms of agreement.

The developer is generally responsible for “faults” resulting from inadequate workmanship, materials, etc, for a defined period, i.e. 12 months after date of settlement.

— Michael

“the flat is a Central Equity one”

– CE apartments typically define “over-supply”.

In saying this, the investment may meet your objectives, but make sure you conduct detailed due diligence on the locality, similar current and proposed development in close proximity, market/rental trends and sales activity, valuations, CE apartment turnover – if…[Read more]

If supply is [or could be during your holding period] in excess of demand, look elsewhere.

Inner city apartments are only worth the investment if they offer a competitive advantage, i.e. spacious, attention to detail, exclusivity; and/or there is a clear demand [rental and re-sale] for the product throughout the estimated holding period.

— Michael

A cross-border tax advisor/accountant is recommended.

— Michael

There is no specific guideline for the information you require because it varies from region to region [labor costs], project to project [schedule of materials] and month to month [material costs].

I recommend contacting a local contractor to discuss the above and the general steps involved in building a 3 bedroom dwelling.

— Michael

“Shares aren’t generally talked about here due to ASIC regulations.”

– There is nothing under ASIC regulations that prevents discussing shares as a topic in any public forum.

What is restricted is promoting specific shares/stocks/equities or disclosing information that may impact the shares or company.

— Michael

“you’ll need shares – in fact, you’ll need other investments as well”

— This is not a recommendation to abide by. I personally have shares/stocks because of the liquidity – easy to cash-out. But I also have other investment vehicles to offset the risk and/or potential downturn in the markets.

Unless you understand the company/industry you are…[Read more]

“Ive been told that the area hasn’t reached it’s potential as yet as the developments here have only just started.”

Development does not necessarily mean the market is on the rise. It can take many months, often a year or more from the date the project was conceived before construction begins.

Development planning often gets to a stage where the…[Read more]

Contact your local council/city planning department to find out if you can subdivide the land and what can be built by right.

— Michael

Based on the information provided, you must abide by the covenant, which can only be amended by the adjoining property owner.

However, if you haven’t done so already, you should speak with the local council/planning office, and a qualified lawyer to determine if there are avenues to pursue.

I would have consented to the adjoining subdivision -…[Read more]

[response from “Help Needed”]

In order to acquire property by way of a loan in Europe [or any country] with a foreign entity, the entity must have sufficient assets to secure the loan.

The loan originates in the country where the entity is registered – unless the entity retains sufficient foreign assets.

For example, based on the scenario…[Read more]

“My mate is indeed a Malaysian national”

To reiterate my earlier point, the fact that your potential partner is a Malaysian alone means very little. In order to reduce your risk, it is advisable to partner with an individual well established in this market, with a successful track record and reputable network.

“How is the property market…[Read more]

Unless well established financially [prepared to lose your investment], with value-add/successful contacts/JV partners in Malaysia, then this is a very high risk market.

Given the risks involved – short or long-term investment strategy, Australia and/or New Zealand should be far more rewarding.

— Michael

In order to acquire property by way of a loan in Europe [or any country] with a foreign entity, the entity must have sufficient assets to secure the loan.

The loan originates in the country where the entity is registered – unless the entity retains sufficient foreign assets.

For example, based on the scenario outlined, you would borrow funds…[Read more]

“You wouldn’t need additional security, but the valuations have to stack up.”

– In some instances the above is correct.

However, if the “developer” has no prior experience/track record, and has not employed a reputable QS and qualified professionals, i.e. architect, project manager and/or building contractor to conduct the development – no…[Read more]

“what was your biggest and best seed (or tool) that you planted to get you where you are today?”

seed = “education” ->

resulted in no money -> ignited drive and determination -> knowledge derived through education translated into viable business concept -> still no money, but committment -> concept attracted experienced and proficient…[Read more]

Yield is important in determining whether you should invest in property A or B – similar properties in the same price range, but different maintenance costs/overheads, for example.

Furthermore, a property’s yield can be compared with other investment options, i.e. stocks and bonds, a business’s cash flow, term deposits, etc, to determine the most…[Read more]

” 2. 5-7% for these are shit. There are plenty around going at 10%.”

– correct, 5-7 percent is not generally considered a feasible ROI [return on investment].

3. I’m pretty sure they’re residential, but with a commercial LVR ie 60%

– apartment developments are generally residential; hotel developments are often commercial due to commercial…[Read more]