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the funding offer was in 2 x tranches, 1 for the land, 1 for the build. the land was roughly $2m, plan was to split the block in half, build a $1m house each side, sell each for $2.5ish. they funded the land, then GFC took a grip, my end product halved in value. the lender, allco finance, said I...

nah, no chance

interesting story. A life destroying one if you are the subject of it. I knew and heard of several people taken down during the gfc that had $xx or $xxx million in equity. banks are funny beasts, they will goto the end of the earth tracing some poor sod down for his delinquent credit card, yet...

Collapse? no idea, maybe, maybe not. Not much in the economy is giving me confidence, one out of control price bubble in Sydney and you'd be forgiven for thinking Australia has found an elixir. A bubble has developed because of pure asset speculation, not economic fundamentals. Pimco issued...

real estate doesn't grow in a linear fashion, it moves in cycles, so it will happen it's just a matter of when. the higher it goes and the later you are to the party the more it will hurt

yeh have messed around with plenty of those sorts of developments, can't see me rushing back there in a hurry. there's more fat and quicker turn around in single resi spec homes IMO. where it does seem to work well is for vertically integrated developers/builders/trades

people tend to feel that because the thought of prices dropping with the market as hot as it is now just seems too far removed

you only need to look at that office complex I was doing to see that in play... between buying the land and doing the plans the market completely nose dived. The only way I can see of mitigating such risk is either going in low LVR (syndicate the thing and buy land with cash so you can just sit...

really? it's quite common. and of course was particularly rife during the GFC... St Gge have a reputation now after their conduct during the GFC with developers. Don't trust the banks for a minute.

DK... one minute I am told overseas are not fuelling the market, next I hear they are the devil

if postcode restrictions is meddling then that meddling is already happening with all the consequences that go with it. this is just changing things around a little. Simple as any postcode 2xxx is deemed high risk, LVR Max 70%

postcode lending restrictions are the obvious answer