>>Couple of answers- show me the money- unfortunately, the owners want a contract, not an option, or they will let the properties rot till they get their price.<<

That is fine of course. The thing to do is to move onto the next prospect.

There is a lot of truth in the saying : A winner never quits and a quiter never wins.

This is a numbers game.

However, have you shown these owners what similar properties in the area have sold for ?

Have you explained to them that you are going to spend prhaps as much as $ 30,000 on plans and an application to council ? (which implies that you ARE committed).

Have you explained that the very reason you are willing to pay more for the property than it it worth as a normal house is because of you looking at it from a development point of view ?

Have you mentioned to them casually that there wouldn’t be a builder or developer in the world who can afford to pay top price unless he is assured that he can do what he thinks he can do there ?

If all that fails wish them a nice day and move on.

(The only time to buy unconditional is if it is a steal AND you are absolutely convinced you will get
approval from council)

Remember, the quickest way to go broke is to buy a property at an inflated price and being stuck with it because council either refuses to approve the plan or because they take too long to deal with the development application.

>>but I have no experience in developing. However, I have an intelligent brain, a willingness to learn, and an old man who can hopefully steer me away from trouble.<<

All of that are necessary items but it isn’t going to establish confidence in people’s minds unless you have some successes under your belt already.

If that were the case they will be asking you whether then can possibly participate rather than the other way around.

You mention that you have a willingness to learn.
If one is learning one is bound to make mistakes during the process.

Is it fair and reasonable to learn and make mistakes at other people’s expense ?

Normally people hand over money because (they think that) the other person knows what to do.

Once you have acquired the necessary skills all one needs to do is make them keen, make them hungry, make them desire, to be your partner.

Without previous success to help you create a successful image you will be like a beggar, asking, pleading, others to please put some money in your kitty, in your project.

>>I have ditched the prospectus idea, and will form a company, and throw in some cash to get the ball rolling.<<

Just about the only good chance you’ve got to get someone to contribute moneys is your mother. []

>>I am currently leaning towards Melbears idea. If I tie up the deal, and get a da through for subdivision, my options instantly expand.
I can sell a couple of blocks (retiring some debt), do a JV with a builder or two, or try to do the whole lot myself (but only with a very successful raising of funds by selling company shares). As a bad movie once said, If you build it they will come. If I come up with a good deal, I should profit handsomely, if not, then I wont!<<

Some people think that if they build the best mousetrap in the world people will beat a path to their door.

I doubt it.

Start off small, Get involved in a couple of Dual Occupancy houses and move on from there.

With a Dual Occupancy house project at least your friends will be more easily be able to see (and be less fearful) that it is quite simple (though of course it isn’t).

But ……….., with such a small project it will be a lot easier for your friends to have some confidence.

Out of all the people on this site Michael R. is probably the only one whom I would feel confident (skillwise) with to entrust some money to in a deal.

Cheers,

Pisces

Wrappack, no offense, you appear to be very ambitious (which is fine) but my question is ‘Have you been involved in any development at all sofar ?’

Starting at the top is probably only a good idea if your father’s name is Kerry.

There are so many pitfalls, so many things to watch out for which one cannot really all learn by asking questions on a forum.

Pisces

I give up

Pisces

>>In 15 years it is likely they will have either refinanced and paid you out or will have sold the property.<<

If I were to do a wrap (and I doubt I ever will) I would want to see the property transferred out of my name within five years or so.

I think Lawrence summed it up pretty well when he said : “wrapping properties in the areas I speak of is difficult. They are awesome for having a property pay itself off , but difficult to sell.. i.e. a house on an acre of land in the middle of a town of 400 people. Sold for 14,000 and rent is 50 dollars a week. thus in only 5 years you have 14,000 with minimal effort, and a bank manager eager to lend you more money. BUT it took 3 YEARS to sell the property. See the dilemma. There are often no capital gains in the places I speak of.”

That is such a significant statement that I don’t feel I am wasting your time by repeating it.

In fact I will hang this statement on the wall in front of my desk just to remind me if ever I get infected with wrapping enthusiasm.

After all who wants a paltry $ 50 a week (if we are fortunate enough to have a tenant in the property that is) if after some years all that surplus is eaten up by repairs.

What does it cost to rewire a house ?

What about the cost of roof repair ?

What about the cost of repainting when we need to fill the house with a new tenant ?

The whole wrapping situation for $ 50 K houses is a mirage, a self imposed hoax.

There are no shortcuts to wealth. In this country, in major cities, there WILL be a steady increase in values over a period of some years. What more do you want as a formula to make money ?

Besides, as PurpleKiss says : “How long will it take to find a tenant (in a population of 400 people – or 4,000 for that matter) ?

Pisces

Often the style of building or the inside (kitchen, bathroom) dates it.

Also, have a look at the water taps in the yard.

Often they have a year stamped on it (for example 1950 – so you know that the building is at least that old)

Pisces

What is the Orbital project ?

Pisces

To get a promotion , what counts is seniority, not ability !!

Many teachers are deadwood, not very capable, bludging, doing as little work as possible.

Then again, others are hard working and dedicated.

What about getting rid of the incompetent ones ?

Not incompetent ?

Who should we blame for the fact that so many pupils are virtually illiterate, unable to put simple sentences together ?

Yes, that was determined by studying university students !!!

Should the incompetent ones get a raise ? Absolutely not.

Does it make sense to have long holidays ?

Do you really think that teachers are the only ones who work under pressure ?

And as far as getting upset about the private shcools
being subsidised is concerned, the government couldn’t logistically handle taking over these schools’ work, nor, for that matter, fund the setting up costs.

Pisces

Tjal, you ask ‘Where is a good place to find unbiased information on the state of the property market?’

Have a look at this site :
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=8000&sortfield=&sortorder=&whichpage=1

Pisces

Redwing, Hedrek was talking about $ 1,200 takehome pay (i.e. $ 1,200 after tax !!)

Pisces

>>but Tony was asking about flood areas not the rates at westpac!!<<

That is true but the impression I gleaned that the extra risk was just thrown in at no additional premium.
I actually compared their premium sometime ago and Westpac appeared dear.

Pisces