Forum Replies Created
- Originally posted by JULES1:
I have the opportunity to buy land which will be subdivided. However I have to fully pay for my block which I can see on the subdivision plans, before the subdivision and infrastructure are put in place.
I am thinking of buying a couple of blocks.
I know I will make a profit on the land when the subdivision is completed. Am I headed for trouble in any aspect?Would appreciate some assistance with this one.
Thanks
Jules [angel]I don’t understand why you have to pay in full until the subdivison is completed and you have a title. This is dangerous and can not occur in Victoria.
Please tell us more details so we can make a more informed statement
Michael Yardney
Metropole Properties
http://www.metropole.com.auI can give you the names of some great property lawyers in Melbourne and Gold Coast.
One’s who understand property well and I have reffered many clients to – and they ahve been happy.
Sorry I or am not prepared to give their names on a public forum (to protect them) but ssend me an email and I would be happy to pass on their details. [email protected]Michael Yardney
Metropole Properties
http://www.metropole.com.auOriginally posted by Ricksters12:Hi Mortgage Adviser and HolderCommodore,
Thanks for the reply. The site was very informative.
Holden, are you sure about selling property in melbourne dont require license if not getting commission?Regards
Rickster12
Anyone can sell their own property and you could sell onefor your sister as long as you don’t take a commision.
But being in Sydney, how could you sell a property in melbourne when most Melbourne agensta re having trouble selling property today[worried]Michael Yardney
Metropole Properties
http://www.metropole.com.auOriginally posted by Sonja:Hi Michael,
Perhaps I heard it from you at the Reno Kings seminar in November? It’s not something I’ve personally used and I suspect that with your reputation as a frequent buyer you may have more luck getting it accepted than I would. It’s definitly worth being aware of though.
Cheers
SonjaHi Sonja
Youa er probably correct – I did mention it in my presentation.
BUt if I can use the cluase so can you.
Go for it, most agents don’t understand the power of that clause.
Michael Yardney
Metropole Properties
http://www.metropole.com.auOriginally posted by AusProp:Originally posted by Sonja:I recently heard something along the lines of “subject to approval by purchasor’s solicitor” which I quite liked the sound of. It doesn’t sound too long winded or list lots of conditions that may make the vendor baulk but it gives VERY broad protection.
Regards
SonjaI saw this the other day… good luck if you can get anyone to accept it, and who knows they might. You may as well just write “subject to me changing my mind at any given moment”
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
We buy 2 – 3 properties for clients each week and use the “subject to solicitor’s approval” clause every time.
It is very broad and is always accepted.
Smart selling agents see the power of this clause and sometimes put a time limit on it such as “within 7 days”
Michael Yardney
Metropole Properties
http://www.metropole.com.auOriginally posted by The Mortgage Adviser:Hey, good info.
One question, why are there two websites for the same thing or did I miss something?
Simple answer.
The old web site was http://www.metropole.com.au It’s almost 3 years old now and needed a face lift.
You caught us in the middle of the change over
We have just been upgrading the old site into 3 sites for each of the divisions of our business
http://www.metropoleprojects.com.au for the property development management side (just went live a few days ago)
http://www.rentingmelbourne.com.au for property management new site up for only a week or so
and
http://www.buyingmelbourne.com.au for the established investment property arm of the business.- will be up in a week or soThe old site that you refer to http://www.metropole.com.au will jst become a portal for the other three sites by the end of next week.
Michael Yardney
Metropole Properties
http://www.metropole.com.auOriginally posted by Rebecca2:Thanks Yack,
Thats what my hubby said. Bugger I hate it when he is right.Beck.
“You have to leave your mouth open for a very long time before a roast chicken flys into it.” Early Proveb.Maybe you were right after all.[biggrin]
But then I am biased, because Pam my wife runs Metropole Property Management http://www.rentingmelbourne.com.au the agency in question in this post.
I know some tenants walk into the local estate agent, but that’s not the way the majority look for a property today.
Most tenants search on the internet and that’s why we advertise (for free to our landlords) on the 4 major web sites.
For what it is worth our PM’s leased 19 properties last month including 3 in Ringwood (that the local guys couldn’t lease) and 2 in Frankston. (For interstate readers – they are almost the opposite ends of Melbourne.)
This month we have leased 17 properties so far (others say pre Xmas it is quiet)again all over Melbourne.
We have found having a central office, but area specific property managers, works really well for our landlords. Especially since most have multiple properties and prefer one point of contact.
With the internet, direct debit and and rent cards, it doesn’t matter where our office is.
Anyway… in your search for a good property manager maybe the following report will be of help
http://www.metropole.com.au/reports/bonus_report2.htm
Michael Yardney
Metropole Properties
http://www.metropole.com.auThis is something I see many clients initially suggest as they think it decreases their funds required for a development as they don’t have to fund the land.
The problem is this rarely works.
Lenders won’t fund the development as they can’t mortgage the property as it is being built, since it is on someone else’s land.
Also if you don’t have control of the land and a dispute arises (as Terry suggests) you are in trouble.
I currently have one client in exactly this position and they are in the midst of an expensive legal dispute
Michael Yardney
Metropole Properties
http://www.metropole.com.auOriginally posted by persistence:Can anyone tell me how I would find out what the value of a block of a particular block of land is? This block currently has a v run down house that I want to demolish and I am trying to work out what to offer. There are no other vacant blocks in the area that I can use as a comparison.
It’s in Victoria.
Any thoughts?
While there is no historic records of land values in established suburbs, market research will help you ascertain these values.
Firstly council valuations are a good start to ascertain unimproved value.
The way we ( as property developers) work out the land value in a particular area is from the prices of properties that are sold where the dwelling adds little or no value to the area.
So for example I know in that East Brighton land value is $850 – $900 per sq mt. I have worked this out from recent sales of run down properties.
An old property on the average block of land of 700sq mts sells for $600,000. When people buy this type of property they tend to pull down the house and build a new home or group of townhouses. This means they do not attribute any value to the house and so they have bought close to land value.
Michael Yardney
Metropole Properties
http://www.metropole.com.auOriginally posted by Piper:Hi. Could anyone who has excellent Property managers working/ acting for them in Inner City melbourne,vic, recommend them for me to talk to- to look after a property there/ Also(2) What are the general costs and charges that these PM charge?
Property is a private dwelling . Tks /PiperMy reply may be too late as I haven’t logged on to this forum for a while, and I must decalre a vested interest because the property manager is my wife, but if you are still looking for a great PM give Pamela Yardney a call at Metropole Property Management http://www.rentingmelbourne.com.au
Don’t tka e my biased opinion ask the right questions and make up your own mind. For those looking for a PM here is a list of great questions you should ask
http://www.metropole.com.au/reports/bonus_report2.htm
Michael Yardney
Metropole Properties
http://www.metropole.com.auOriginally posted by Ambo72:Hi all,
On many of the advertisements I have seen for commercial property, it often mentions outgoing costs. What exactly is included in outgoing costs and what are the tenants of a commercial property responsible for paying?
Thanks,
Ian [?]Tenants of commercial properties usually pay all outgoings which include water and council rates, land tax (on a single holding basis) insurance and even body corporate levies
Michael Yardney
Metropole Properties
http://www.metropole.com.auOriginally posted by Rugbyfan:Thanks Michael for your advice, call me silly but I am going to go out of my comfort zone and give it a go. My father in law has done a few dual occ’s so I will be getting some advice from him, but I really wanted to do something a little different to the usual.
I see that buying +ve cashflow prop’s will be harder to do so I want to make money in a different way. I am not a total novice at investing (not a pro either, I might add!).
‘Eat rich food, barbeque a yuppie’
Rugbyfan – you are right, with the changes in the market it is much harder to find +ve cah flow properties and property development is a great way to achieve this. You buy/build your invetsment at wholesale prices and the tenants dn’t know this so they pay you retail rents.
My point was its a difficult time in the cycle for proeprty developing also and if you were not sure of the basics, you could end in a little bit of trouble. It’s great that your father in law has some experience. He should be able to guide you. Another thought is to find a development project manager who could guide you.
Michael Yardney
Metropole Properties
http://www.metropole.com.auWe have been running a series of articles on property developing in our monthly newsletter that may assist you. As my company is currently involved in 65 individual development projects around Melbourne, I believe we are in a good position to advise on proeprty development.
Usually development costs are based on a cost per sq mt as you suggest but you will find it is considerably higher than the cost of building a standard display home. You must also consider the additional costs associated with a multi unit development that you don’t have with a single dwelling development such as subdivision costs and council levies.
If you don’t know the basics of costing you probably should not venture into development. Especially at this stage of the property cycle. By the way you can find out more about property development as well as property management from our newsletter:-
http://www.metropole.com.au/html/Subscribe.htm
Michael Yardney
Metropole Properties
http://www.metropole.com.auDale is a great accountant and understands property -well worth the trip.
You probably will only need to see your accountant once or twice a year. Most routine questions can be answered over the phone or by email
Michael Yardney
Metropole Properties
http://www.metropole.com.auLenders won’t lend to your trust as it is not a legal entity -they will lend to the trustee company, using the property as security. As the trustee is ususally a $2 company they will request you guarantee the loan unless you keep the loan to value ration under about 60%. This way they feel they have sufficient security and may not ask for a guarantee
Michael Yardney
Metropole Properties
http://www.metropole.com.auquote:
I suggest to keep things simple, Fullout.There are two kind of options.
A simple one page option which just details the property, a price and a time within which the option should be exercised etc. (which your solicitor will say about that it isn’t detailed enough).
Or an option created by your skillful, knowall, theorising solicitor which perhaps is as much as twelve or thirteen pages long.
The problem is that if one wants to place too many dots on the iii’s the document becomes so complicated that the person who has to sign the document will refuse to sign because he becomes frightened.
When he therefore consults his solicitor the solicitor will do him a big so called favour by talking him out of granting the option thus making his client miss out on a sale.
So the choice, Fullout is really between a simple option which is so simple and straightforward that the option writer will be happy to sign it there and then or a complicated, detailed one which will never be signed.
Cheers,
Pisces133
Sorry to disagree Pisces
A simple one page option does not protect you, that’s why your solicitor wants a more detailed document.
Similarly the simple one page document will not protect the vendor and if he has half a brain he will also show this document to his solictor who would reject it.
Recently a few of our clients have bought substantial properties using options written by solicitors and the vendors have accepted them, Of course it takes a lot of eductaion to get a vendor to accept any type of option
Michael Yardney
Metropole Properties
http://www.metropole.com.auquote:
Hi all,Just hoping some of you might be able to give me a couple of names of financial advisers / accountants in Melbourne or the western suburbs (ie. Altona) that specialise in property investing? Michael Yardney (thanks Mike!) has been very helpful in finding me a solicitor and I’m looking for someone to help me with the financial advice and set up of a trust.
Thanks
J [
]Dale Gatherum Goss is great and I reffer a lot of clients to him. Very few finacial advisors will give you sensible advice about property. They don’t understand it.
Michael Yardney
Metropole Properties
http://www.metropole.com.auquote:
I Look in the sunday age
and the sunday sun
all the reported ones are listed there
What I meant was look at Sturday’s Age and see which auctions were listed for that day. You will find many of them will not have results reported on SundayMichael Yardney
Metropole Properties
http://www.metropole.com.auquote:
how can i find those properties that didnt sell in auctions?
I read in the newspaper that the auction results and ratios are not accurate, since the agents dont report the aucts that didnt sell.Fullout
It makes sense to look for these properties as when you find them you will almost certainly find a motivated vendor who has had the “stuffing knocked out” of them with the emotional trauma of an auction that did not sell.
You are correct that agnets don’t report all passed in properties, but they will almost certainly report all sales.
To find the properties that did not sell at auction have a look at the auction ads for the geographic areas in which you are interested and then after the weekend look inn the papers to find those properties that were passed in or were not reported. they are the ones to follow up.
How to take advantage of the new auction rules is a lead article in this months Property Investmant Update ezine – subscribe4free at
http://www.metropole.com.au/html/Subscribe.htmMichael Yardney
Metropole Properties
http://www.metropole.com.auquote:
WARNINGPhil Jones and his mob are becoming notorious in NZ.
As Bill says, “They will eat you alive.” They are the Kiwi version of Henry Kaye.
Many of their “great deals” are “horror deals”. They are barely out of nappies. Mark my words – they are going to fall down and take lots of people with them.
This is all I am going to say about them, at this stage.
Stick with Bill’s advice. PLEASE!!
Bec
We need to be careful from whom we take advice. What are they doing with their money? How long have they been doing it? Have they traded through a few property cycles?
Over the last few years everyone things they know about property. That’s because you could buy almost any property, go away on holidays and come back and it was worth more.
A lot of the people giving advice today have been trading or investing in property for 3 or 4 years.
As someone who has been investing for 30 years and owns a very substantial portfolio and is still very active in the market today, I have seen it all before. Different names, different people but the scenario is the same.
Take advice from someone who is out of “nappies”. There are not many of them around giving advice and what they may teach you is not as enticing as what the new age of gurus may say.
It may not be what you want to hear
You may not be able to be a millionaire by Xmas. It may take 10 – 15 years.
You may not be able to buy 130 properties, maybe only 3 and own them in your own name.
As others have said educate yourself so you can make your own decisions. There is still great value in books and seminars from the right people. It’s just hard to know who the right people are
Michael Yardney
Metropole Properties
http://www.metropole.com.au
]
