Recent content by hschmid

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    Is 50% ROI REALLY obtainable in this market?

    Hi everyone I was presented with this offer. Small development total cost $300K (land & buld) Sell for $450K off-the-plan. Property sold before construction. That's 50% ROI! Sounds too good. Value your thoughts. Thank You The details of their offer...
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    Fractional Ownership

    Hi everyone! There is a new resort project being proposed for Mt Hutt (South Island) offering fractional ownership of apartments. This is where you buy 1/2 or 1/4 or even 1/12 of an apartment (as tenants in common). I've googled fractional ownership and it seems to be a popular and...
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    JV's - Structures, Taxation, Finance and Stuff

    The vendor solicitor usually will demand time frames and sunset clauses. Again I think the spirit and expectations from these negotiations are 6 month delays. If you are applying for a complete new rezone that takes time but a DCP/LEP compliant proposal is usually with the 6 months...
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    Are over 55's retirement appartments good investments ?

    The spirit of SEPP 5 (over 55) is to create affordable products for boomers to BUY! Planning allows for more development on a block, under SEPP 5 than traditional development would allow. This would reduce land costs per unit therefore making them more affordable. I am not sure if...
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    JV's - Structures, Taxation, Finance and Stuff

    settlement 1 to 3 yrs is a bit ambitious. These are more 3 to 6 month delays. Enough time for DA and subdivision. Releasing deposit is ok under prudent circumstances. Be careful that the vendor does'nt default on any existing debts on the land during your settlement period as any...
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    Commercial shop In Mt Druitt - Lethbridge Park

    Daz, do u ever succeed with these low ball offers?
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    Price vs Depreciation

    Sometimes new is also more tenant friendly and appealing. 7 year builder warranty also helps sleep at night (assuming sound builder). This is a buyers market, you will strike a better deal with a developer than a vendor. You might even buy new cheaper than some used (definately in some...
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    Negotiation Tips needed pleeeease

    presumably there is an agent involved. They should be fighting harder.. this looks like a deal from every angle. Suggest the agent reduce his commission by 2.5k to close the deal.
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    Are over 55's retirement appartments good investments ?

    < 80% lend cannot get LMI for this type of product
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    Are over 55's retirement appartments good investments ?

    Returns on IP are measured but both yield and CG. These little babies tend to self fund. 8% + returns are handy. Often the yield is pegged with CPI or pension rates, some growth will occur. They can be a welcomed cash flow balance to small yielding (potentially) high CG IP's.
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    JV's - Structures, Taxation, Finance and Stuff

    Ebbie, some vendors might allow u to seek DA under a PUT/CALL option or 5% exchange with delayed settlement subject to subdivision approval. You won't need any SPV (special project vehicle). You can even negotiate to even start footings, create 2 titles and then settle each block to each...
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    Presales - How do they work??

    Be careful that discounted or incentived pre sales don't establish a low valuation precedent for the rest of your project. When we presell at 'incentive' prices we make sure that the 'public record' of those sales are at full value and that the incentive is an agreed rebate or after...
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    Just aquired 2nd IP!

    Now u need to discover how to acquire IP's with NO MONEY DOWN.
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    Which one would you go for?

    I think house 2. Depr helps.
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    Is this the best time to invest?

    The challenge is to buy UNDER market value. Why not develop a small site and keep some of the end stock? If you cannot do it yourself, create a syndicate with like minded investors.