So I buy a beachside duplex site at the peak of the market for near on $2m dollars, with the intention of knocking down the old house and putting up 2 x 2 storey luxury homes by one of the premium builders in the south west. the subdivision was to run the length of the block, creating 2 lots. the build on each was about $1m, end value about $2.5m. finance all in place with the lovely folk at Allco. Everything set to go and GFC hits. You couldn't give the end product away anymore... a comparable product down the road dropped from $2m and eventually sold (to a mate on my recomendation) for $1.2m... land value so he got the house for free. Allco is presuring me to go to development... I tell them it's financial suicide. They really crack it, the guy I dealt with was a real nob - the funds are in place and I must make use of the facility, despite the fact it makes no commercial sense whatsoever. I stay my ground and advise that I won't proceed. so about 4 days before xmas they pull my facility in its entirety and advise i have 7 days to pay out the loan.
stress...
so my NAB banker does a superb job and actually manages to get it done in about the space of 10 days.
needless to say it was a joyous day when I read that Allco Finance had collapsed. really guys?? probably because you were half wits!
so here I am with an approved development that makes no sense and has dropped massively in value. I then hear the health dept is now refusing anymore developments like this as there is no sewer (uses ATU's).
I consult with Aaron as to whether there was any chance I could change the direction of the subdivision (basically start again), carve off the existing house and flog it, then develop the remaining land. It's a heck of an ask... council concessions galore required. the house would sit in the minimum set back area for the main road, health dept no longer approving, there are native trees galore that may need to remain to get this thru. Aaron comes up with a design that would save most of the native peppy trees, not require earthworks, saves the old house (which is one the originals for that community - an old farm house). He goes in to bat, taking on the council and water corp and health dept, shooting their objections down and... gets it thru.
It's finally under way now with a great local builder. Started last week and will be finished by xmas. Will post images as it goes up....
Thanks Aaron - great job!
stress...
so my NAB banker does a superb job and actually manages to get it done in about the space of 10 days.
needless to say it was a joyous day when I read that Allco Finance had collapsed. really guys?? probably because you were half wits!
so here I am with an approved development that makes no sense and has dropped massively in value. I then hear the health dept is now refusing anymore developments like this as there is no sewer (uses ATU's).
I consult with Aaron as to whether there was any chance I could change the direction of the subdivision (basically start again), carve off the existing house and flog it, then develop the remaining land. It's a heck of an ask... council concessions galore required. the house would sit in the minimum set back area for the main road, health dept no longer approving, there are native trees galore that may need to remain to get this thru. Aaron comes up with a design that would save most of the native peppy trees, not require earthworks, saves the old house (which is one the originals for that community - an old farm house). He goes in to bat, taking on the council and water corp and health dept, shooting their objections down and... gets it thru.
It's finally under way now with a great local builder. Started last week and will be finished by xmas. Will post images as it goes up....
Thanks Aaron - great job!
