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You are talking about a few hundred dollars.
If that is going to be break the development don’t proceed.If its not, why even consider the magistrate’s court .
Think of the big picture and what your time is worth and the negative emotions involved with having a dispute with your neighbour.
Pay for the fence. Complete your project. Make lots of money and enjoy your life,
You don’t need that type of hassle
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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You are right – in principal what you have expained is my understanding of this loan product.
Just to clarify things – we don’t have anything to do with the loan product and get no refferal commisions.
It sounds like an interesting product that will suit some but definately not all investors.
Obviously one product or loan etc can’t suit everybody.
It helps with cashflow if the interest you are paying is half the going rate and I understand it will start off at 3.75% ( that’s what I have been told)
The balance is deffered and you pay it out of capital growth. So you need to own the right type of property otherwise you can get yourself into real trouble!!
But that’s only one of the hundreds of things the 3 speakers will be discussing.
You can find out more at:
http://www.metropole.com.au/newsletter/0606/juneflash.htmThere’s a heap of wealth creation bonuses and some credible speakers – but then I’m biased aren’t I?[biggrin]
I’ve received a stack of emails over the weekend about the bonuses as they were for the 1st 100 bookings – so this is a great chance to explain things.
They went in the first hour. We had over 700 bookings so far in 2 days. So we extended the bonuses for everyone – to hard to do otherwise.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 15,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auI will just keep buying more properties while some others will be wondering what is going on around them.
I’ve done this for 33 years and what seemed to be a bursting bubble for some turned out to be a great opportunity for others with a big picture view and an abundance mentality.
Michael Yardney
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Author of Australia’s leading property e-magazine.
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FREE subscription http://www.PropertyUpdate.com.auPaligap
You will find that the neighbours are unlikely to pay.
It is implied in the permit that you – the developer – will do all the work required in the permit conditions including the the fence at your cost.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.PropertyUpdate.com.auI remember the events well. I even remember I was on vacation in Sydney when I heard news of the crash.
Many inexperienced investors were caught in the sharemarket crash – many having invested near the peak of the boom, egged on by the normal hype and greed that occurs during booms.
The crash wiped out lots of investors and for a few months everyone lost confidence – in shares , in business, in the economy.
So there was a period of property bargains – I remember well because we bought our family home in November 87 just after the crash and there was no competition.
The government helped things move on and lower interest rates to stimulate the economy and starting in 1988 we had a serious property boom particularly in Sydney, Melbourne and Brisbane.
An unsustainable boom that led to the recession we had to have that wiped out lots of businesses and property investorsMichael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 13,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auIt is interesting because the first reference I ever heard about buying “wholesale” (and I have been in property for over 30 years) is when we I used it in marketing our property development services http://www.metropoleprojects.com.au in 2001.
Since then it’s has been bandied around and a little basterdised.
In general retail purchases, if you miss the retailer and go straight to the manufacturer or distributor (lot’s is manufactured overseas now) one used the term wholesale – this meant buying without the retailers margin.
And that’s what our property dvelopers program allows – investors to become an “armchair developer” and get their investments at wholesale by making the final developers or retailers margin.
Now sorry if this post smacks of advertising – its not mean to – over the years I don’t think I ever got a development client (as opposed to a buyers agency client) from this forum.
I’m only mentioning this becuase I know where the term wholesale began if you take it in the context we are speaking of. I remember the early days of the somersoft fforum well, when I first introduced it – long before this forum was alive.
To me buying an established house well, because of good negotiation is not really wholesale. It is buying below market price .
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.PropertyUpdate.com.auDeveloping is not really an excercise for teh unexperienced.
While it can be profitable; very ,very profitable – most begining developers don’t make money and frequently loose substantial amounts.
Do lot’s of due dilligence (as you have started to do by asking these questions) and get advice form people who are actually doing what you want to achieve and are successful at it.
Here are some links to artcicles that could help you.
The Benefits of becoming a Property Developer
http://www.propertyupdate.com.au/articles/19/1/The-Benefits-of-Becoming-a-Property-Developer
The Risks of Property Development
http://www.propertyupdate.com.au/articles/70/1/The-Risks-Related-to-Property-DevelopmentThe Property Development Process
http://www.propertyupdate.com.au/articles/19/1/The-Benefits-of-Becoming-a-Property-Developer
I hope these help and good luck with your project
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.PropertyUpdate.com.auOriginally posted by BillyT:Thanks Michael,
I will try that one and I have also ordered your book.
Look forward to recieving it.
Billyt
Thanks Billyt
The book is selling amazingly well and lots of very positive feedback from readers.
I hope my book helps you grow your own Multi Million Dollar Property Portfolio.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 11,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auOur research suggestes that some parts of Melbourne, in particular the middle ring south eastern suburbs, are past the slump stage of the cycle and already in the upturn. long way befor the next boom
There are half a dozen suburbs, where we have been actively buying properties where prices have risen at least 10% in the last year. This is not hypothetical, nor speculation, but a fact.
For an update on where Melbourne and the other states are in the property cycle check out the following link
http://www.propertyupdate.com.au/articles/45/1/The-State-of-our-Property-Market
The cycle has moved on, and astsute investors are actively buying properties, while most investors are still wondering what is going on
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.PropertyUpdate.com.auIt depends on how well the builder coordinates his tradespople, but what you described is a major reno and could take 3 to 4 months
Michael Yardney
METROPOLE PROPERTIES
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Join over 11,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auThanks for pointing out the article on my http://www.PropertyUpdate.com.au web site.
There was a book published a few years ago -How Commercial Property Really Works by Roth & Lang – it gave a good overview
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 11,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auThe best indicator of future performance of a suburb or region has always been its past performance and the longer the past history, the more accurate this will be.
In other words, if you are researching 2 suburbs and for the last 45 years suburb no.1 has had average capital growth of 12% (just above average for Melbourne (like many south eastern suburbs) and you compare it to suburb no.2 which has had average capital growth of 8% (like many western suburbs)… the most likley thing to happen is:-
Suburb no.1 will keep growing at 12% p.a.
and…
Suburb no.2 will keep growing at 8%
And the longer the past history of this level of growth, the better the predictive factor.
This is not always true – things like major infrastructure changes etc can effect growth.
Sure suburb no2 will be cheaper, but people don’t choose where they live on price alone.
It’s just that more people choose to live in Melbourne’s SE suburbs. If they are born there they rarely move across to the other side, yet lots of people born in the northern and western suburbs move to the south east.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.PropertyUpdate.com.auJoel
The rules for commercial property are very, very different to the rules that govern residential property.
Yet in the last few years I have seen some investors buy commercial property using the same criteria they would use choosing a house and then they wonder what went wrong.
You can get a summary of the differences here:-
http://www.propertyupdate.com.au/articles/49/1/Residential-Or-Commercial—Which-is-right-for-you%3F
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.PropertyUpdate.com.auOriginally posted by aliandmike:….. As I read Michael’s post (no offence Michael) I was thinking “Yeah, whatever” but then, what do you know, two other posts come on about his book and how good it is. I might just look into it (the extras when you buy online also look good)……
Cheers
Mike (perhaps a bit cheeky tonight)[thumbsupanim]Mike
You are right -why would you believe what I have to say about my own book – I’m just a proud father [exhappy].
To get unbiased comments from other property investors have a look at what they have to say on the somersoft forum;-
http://www.somersoft.com/forums/showthread.php?t=24555
As to where you should buy it.
I don’t mind. Obviously there are on line sources that are convenient or go to your local bookshop.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 11,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auWith regards to the deposit, you cannot access it. It will have to be held in the solicitor’s or agent’s trust account.
You try and protect yourself by signing a fixed time and fixed price contract with the builder.
But there are always contingencies and PC items and provisional sums that they can add to the contract price.
Protect yourself by having an accurate feasibility before you start, strict budget control measures and an elemnt of luck[biggrin]
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 11,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auIn Australia to be able to legally charge a commission for finding properties for others, you must have an estate agent’s licence (at least agent’s rep) plus work under the umbrella of some one with a full license who has a trust account and proffesional indemnity insurance. In other words an estate agnecy.
I know not everyone does so, but it’s breaking the law and there are new regulations coming out to control the property investment industry and protect the consumer -about time
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.PropertyUpdate.com.auOriginally posted by bardon:Cyclist,
Not suggesting it is a bad thing but you should be aware that there was a lot of landbanking scams in the UK recently. One of the scammers was rumoured to be starting up in Oz.
google it in UK have a look at least you will know what not to do with landbanking
You’re right Cyclist and a good point to make.
They were taking unsuspecting investors and getting them to
investin land that would never be developed in a million years.Apart from being a sham – they were speculating. That’s not something I would recommend.
If you read my book How to Grow a Multi Million Dollar Property Portfolio – in your spare time http://www.PropertyUpdate.com.au/pages/book you will realise that I am not not a speculator looking for the latest fad or the next hot suburb.
Speculation, by definition, has a high degree of chance.
I am in investor. To some that’s boring, but it’s safe and stood the test of time for me.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 11,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auLand banking is a concept used by the big property developers when they buy up large tracts of “raw” undeveloped land for their future stock.
They add value, sometimes a huge amount of value, by rezoning or developing and subdividing.
It’s a great concept in a rising market but can break the biggest of developers. In the 90’s it sent Hooker Corporation broke and almost bankrupted AV Jenning.
So that type of land banking is not what I am suggesting to the average investor. It would be foolhardy.
But there is an adaption of this technique that I have been using for over 15 years that has worked well and it is the right time of the property cycle to do it all over again.
That’s what I will be talking about.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 11,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auWe do those calculations every day in our office.
Please send me a copy to [email protected] and I would be happy to give you some feedback.
Currently we use Feastudy and some spreadsheets developed inhouse.
Of course the programs are only as good as the data you input and the assumptions you make.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 11,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auWelcome to the forum, and investing for capital gains has made many investors wealthy.
But “diving in right away” has made many investors regret their decisons.
The best way to assess how an area will perfrom in the future with regards to capital gains, is to look at its past track record, and the longer back you look, the more accurate the prediction of the future growth.
Another way you can achieve capital growth is to buy below market price (by doing your rerearch) and by adding value such as through renovations etc.
If you are new to investing:-
1. gain some knowledge such as by reading books. Many have been recomended in other posts, but I ma going to give a blatant plug for my new book, which was just released – How to Grow a Multi Million Dollar Property Portfolio – in your spare time– details here http://www.propertyupdate.com.au/pages/Book
2. Go to some seminars – but be careful who you listen to!
3. hang around positive people who have achieved what you are trying to and learn from them- you will find some smart people on this forum.
The property cycle is moving on, but there is no need to rush into your investment decision.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 11,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.au
