“It’s usually the land that brings most value and that goes up in value – not the property itself.”

– The above statement is not necessarily correct.

The foundation of any property’s value is supply and demand. Limited supply of land will increase value, however, properties that do not have a direct land component will also appreciate in value…[Read more]

As noted, you will need to check local council zoning provisions to determine what can be built on the site.

Being 920 sqm and assuming you have consent to build multiple dwellings by right, you may have sufficient area for three “attached” dwellings.

Alternatively, you would need to subdivide the site for multiple detached dwellings. Which if…[Read more]

In order to secure a 60 percent LVR loan with capitalized interest, as suggested above, the lender may require additional security in the form of [discounted] assets – if you do not have a positive track record, in terms of property development.

Furthermore, there can be a number of costs involved during the preliminary stage – prior to securing…[Read more]

Mini – the point of my reply was De Roos is not as experienced [beyond RE [SFH] investment 101] as he portrays. Nor are any of the projects he is involved with unique.

He has partnered with a developer who is successful in his own right, but the foundation of this partnership is questionable from my perspective. In saying this I hope for the sake…[Read more]

“I don’t put conditions in a contract. Finances are organised, inspections are done, contract is checked, and then I sign, with no CO period.”

The above may be fine in the perfect world, but in reality quite often a contract/option has to be secured before adequate due diligence can be conducted – which appears to be the foundation of this…[Read more]

“subject to due diligence” is not a condition of contract due to being subjective and not easily defined.

Terms and conditions of contract cannot be ambiguous.

“the more “subject to” clauses attached to your offer, the less appealing it will be to the vendor”

This is not correct nor the mindset to have. The “number” of terms and conditions is…[Read more]

“We have recently upgraded our property market forecasts from potential crash to rather bullish.”

– The potential for a “crash” has not existed in the most recent downturn/market adjustment.

The best time to invest in any market [within reason] is when capital is limited, i.e. too risky for the mass/less sophisticated investors.

The key to…[Read more]

As noted above the filing only affects Trumps Hotel and Casino’s Group.

The group has filed chapter 11 bankruptcy protection which is a reorganization of assets and liabilities. Or in other words, it enables the group to write down most if not all of its debt.

In the United States this is often more a strategic move than indication the company…[Read more]

“Some things he [De Roos] is doing in real life are visible for all to see.”

— Correct.

“Check out his website for the property ventures he’s doing. They are great,”

— The facts and figures behind the projects are what is important.

“and he’s the first to do anything like that in his areas.”

— Incorrect.

“So he may be a big time developer…[Read more]

Take from the following articles what you will, but having read these authors [“?”] books quite recently – and having intimate knowledge of transactions both parties have been or currently are involved with, I would have to agree with most of John T. Reed’s comments – although somewhat cynical at…[Read more]

Although the government plays its part, you will likely find smaller lots are a result of demand and maximizing capital gains.

I have just completed a transaction where the only option was to acquire multiple adjoining lots [due to their size and to prevent view obstruction] in order to meet the developments objective.

At first acquiring…[Read more]

“NZ offers better cashflow, however at present QLD provides better capital growth.”

What data do you have to back this up?

Following are a couple of figures [capital gains] for the last quarter – compared with the same quarter last year.

Applies to the New Zealand housing market, not apartments which in some sectors have increased at a higher…[Read more]

The above recommendation is your best option.

It really should not matter how long you have been with the bank – although loyalty plays its part, a better rate of interest can be more important.

The level of debt is also inconsequential in most circumstances because banks/lenders are reliant on securing new customers and holding as much [secure]…[Read more]

I do not know the details of the project you’re referring too, but two points that stand out – and should be approached with caution are as follows;

“because he’s built or building it cheap”

“his risk of doing it this way is minimal”.

“cheap” more than often results in “increased risk” – and failure.

— Michael

Focus on New Zealand – and short to medium term [3-7 years] capital growth.

— Michael

Putting the negative remarks aside, I do have a recommendation [for Mark] that may be worth considering.

Real estate investment is not only about buying, maintaining or developing property. In fact, a reasonable portion of my portfolio is simply “investment” focused – at times we do not visit properties, but rather analyze market data and…[Read more]

“Has anybody done this before and would it work out in todays market?”

— depends on the location, product and supply/demand [market conditions].

“Would it cost very much more to build than a normal brick and tile spec home?”

— a multi-dwelling i.e. duplex, is generally more cost effective than building two spec homes, for example – economies…[Read more]

“what is the general consensus about blocks that are hills at the back, what do you do.”

– what do you want to do – your objective?

— Michael

I am unaware of a “developers license” in Victoria – or anywhere for that matter.

A “developer” is typically someone who conceives a project, then employs licensed people/companies to implement specific phases of that project, i.e. architect, quantity surveyor, building contractor, etc.

For tax and liability reasons it is advisable that the…[Read more]

The advantage of lease option agreements is there are no specific rules – because every circumstance is different.

Aside from general provisions which protect both/all parties, an LO is often structured in accordance with what the parties have ageed too.

The only “WATCHOUT” is not employing a qualified lawyer.

— Michael