Forum Replies Created
Thanks Steve,
Greatly appreciated.
Cheers,
PeteHas anyone got a link to for the mega conference as I can’t find anything about it.
Thanks.
Hi All,
Can anyone recommend a reliable residential Property Manager in Chicago?
Also any suggestions for insurance companies for house insurance would be greatly appreciated.Thanks!
PeteHi Everyone,
I am a long term PI.com member however haven’t logged in for a couple of years.
I’ve been reading this with interest as we are looking at investing in commercial properties in the States and are currently in negotioations on one in Memphis.
Can anyone recommend a bank/ financier who will lend to Australians? We set up an LLC and bak accounts in the States over a year ago as well as American Credit Cards.
Any assistance would be greatly appreciated.
Pete.
Thanks so much for the info.
We find it makes such a difference knowing who owns the property, when they bought it and how much they paid. We use the Tassie site all the time. It's especially good for contacting owners direct.
Cheers
Jackie
Hi Troy.
Any luck with finding someone to help?
We are in a similar position in Tassie. Have 2 lovely 2brm units ready to be tenanted and NRAS would be ideal but the allocations seem to be all tied up. Want to build more but Money Partners are hesitant but NRAS would certainly help us in this regard.
Just wrote a comment on Opee's post named NRAS Property Investment if you want to check out our comments.
Hope you are well. Love to Bec and the girls.
Cheers
Jackie & Pete
Hi Opee,
In Tassie the scheme has been run so badly and is a total mess. Pete & I are small time developers and have a couple of lovely 2brm units that have just been completed in Sorell, 15 minutes from Hobart CBD. They are on the market for $265k each and would rent out for atleast $275pw each. We have had a few people interested, including investors, however Hobart's property market is extremely slow at the moment and people are hesitant to jump in and buy. Don't know what everyone is waiting for!
I came across the NRAS scheme by accident and thought how wonderful it would be if our units could be sold under the scheme to an investor as they would be totally cashflow positive. Upon further investigation I found out who to contact in regards to the allocations only to be told that they were all gone and I was too late. Not happy at all about that outcome I happened to come across a Liberal MP who has been questioning the way the scheme has been run in Tasmania. Apparently of the 670 properties that were to be made available by Sept 10, only 91 were delivered. One particular candidate who received an allocation of 261 failed massively to deliver. That was just from the first 2 rounds. We emailed the MP and to our surprise had a call from her office to arrange a meeting with her. We are meeting this week.
For the lower end purchase price (under $300k) this scheme is fantastic. Why wouldn't you want a cashflow positive property, professionally managed by a Property Manager it would be an awesome investment. Sit back and enjoy a cashflow for the next 10 years. If by chance you want to sell, you can. As long as you bought at market price in the first place.
We have found a fantastic site just 15 minutes south of Hobart where we can put 3 units on one part of the site and 8 on the land next door. Unfortunately our Money Partners are currently hesitant to invest on this project at this time due to the uncertainty in the market. If we were able to tap in to the NRAS scheme and sell the properties with approved tenants in place upon completion, I couldn't think of a better investment. Our end sale price would be mid $200's and market rent would be $250pw. Discounted rent of $200pw over a year is a loss of market rent of $2600 however with the Government's incentive of nearly $10k, you would be totally CF+.
I thinks its awesome and as a developer I would love to see more smaller developers being able to build the type of properties that would work well with this scheme.
Fingers crossed our meeting goes well and we can get some of the allocation away from the big end of town.
Cheers
Jackie & Pete
Hi Steve,
Thanks for your reply.
The reason for my post is that we have come across a development site which can fit in total 11 units and sums stack up very well however finding people to help finance it at the moment is another matter. Tassie is extremely slow at the moment.
That's why I thought that if we could get NRAS approval, get the DA and sell the units off the plan as +CF investment properties, it would help us get the finance we need.
How I currently understand the scheme to work is :-
We build 2brm units and sell to an investor for $245000
Market Rent would be $265pw. With NRAS 20% discount the rent would be $212pw
Initially the property would be -CF by $3640pa, however, with the 20% reduction in rent and the $9500 Tax Free the government gives you back each year, the property would be then $3520pa +CF.
Sounds like a good thing to me. We get to develop 11 units and 11 investors end up with Positive Cashflow Properties.
Am I missing something?
Cheers
Jackie
Hi Kristin,
Our unit is in Warrane, a suburb 10 minutes out of Hobart. I believe the Gold Coast market is pretty bad at the moment so the chances of her unit up there selling is slim. She has reduced the price considerably however not prepared to go further.
We are having another Open Home tommorow. On previous Open Homes we had no one turn up so I'm not confident. That's why I think we need to try another aproach plus we are in search of another development project.
Cheers
JackieThanks for your feedback.
The Agent put a price bracket of $315-$335k on it and we have reduced it twice in the past 3 months and it's now sitting at $289k. Properties in this area are selling in to the $300's so I don't feel we should reduce it any more.
Although, what do you think if we put say $250k on it, maybe it would get more interest and offers might be pushed up if they are in competition.
Hi,
We use Mark Unwin & Associates in Kew and Mark is excellent. We have been Property Developing for about 8 years now and have used Mark for the past 5 and he is extremely knowledgeable and approachable.
Regards
JackieThanks for the info Debbie.
We have a really slack agent and haven't signed anything with him for the sale of them.
I have asked numerous times as to the cost of advertising in the Commercial section but he's been very slack in finding out the info. We are in a tricky situation whereas he is the only agent in town that can collect the rent on our behalf and we don't want to hassle him too much as he could turn around and say he doesn't want to do that any more and we are just too far away to handle it effectively. Mind you, we haven't made it a priority either. The local newsagency could collect the rent for us.
It's been cruising along nicely at around 75% occupancy. It's in a cashflow positive position which is great. Pete and I would be happy to keep them however we are in a joint venture with another couple and they want out.
The mining industry is set to boom in the area and there is enough room to build another 6 sheds as well.
I must put some time aside to really get serious about it.
Thanks everyone for your inputs.
Cheers
JackieThanks Duckster for your info. Will look into them all.
Cheers JackieCongratulations Tugger,
Great area
Hi Tugger,
I will give you a run down on the night once it's happenned.
We are not taking notes or anything like that. Our investing group isn't that far advanced at this stage.
We are planning to hold meetings every 2nd month so we will try and give you as much notice as we can.
Cheers,
PeteHi Everyone,
Just bumping this back to the top.Please read below as the venue has been finanlised.
Regards,
Pete
Hi Misty,
I posted this on your finance post as well.
I'm a registered builder in Tassie and have had exactly the same problem. Nearly everyone classed me in with owner builders when I was trying to get finance to build specs.
The only bank we had any luck with was the NAB. That was back in 2004 and we still enjoy a great relationship with them, using them for all our developing.
Best of Luck,
Pete
Hi Misty,
I'm a registered builder in Tassie and have had exactly the same problem. Nearly everyone classed me in with owner builders when I was trying to get finance to build specs.
The only bank we had any luck with was the NAB. That was back in 2004 and we still enjoy a great relationship with them, using them for all our developing.
Best of Luck,
Pete
Great story Andy.
Make sure you bring your scar for show and tell at our next Tassie get together.
Cheers,
PeteHi Everyone,
Due to the number of responses we have had to change the venue from the private room at Irish Murphy's to the Golden Junk Chinese Restaurant, 9 Cambridge Rd, Bellerive. It is licensed and BYO. Could everyone who has RSVPd please let me know that you have got this message.
We have 9 in total at the moment.
WHAT : Tassie Investors Group
WHEN : Thursday 22nd November
WHERE : Golden Junk Chinese Restaurant,
9 Cambridge Rd, Bellerive.
Licensed and BYO
TIME : 6.30pm for drinks. Dinner at 7.30pm
AGENDA : Meeting like minded people and discussing future meetings/ guest speakers.
RSVP : Let Pete know on [email protected] or 0418 450051
