Deals you missed out on and are still spewing about

[tom32]

In early 2009 when we all thought the mining boom was finished in Perth there were more deals than you could poke a stick at while companies were going to the wall even up in the North West.

The classic was looking at buying up in the North West and speculating how much it costs to float things back to Perth where you could get more for it at the time. Better to have left it up there and capitalised on it now.

Front End Loaders, Drill Rigs, Dump Trucks, Hydraulic Excavators, Acess Equipment all was going for about 60% to 70% of what it was 12 months before and 12 months after.

 

[Monopoly]

Wow Dazz,

Makes my lost 2 pitiful deals hardly worth mentioning, but wait hang on....I didn't!!! Seriously, that kind of deal falling over would have left me more than "spewing" I'd have been seething for the next 20 years!!

 

[RumpledElf]

Rumpled elf, if its such a good deal, why is it still for sale? seriously?

Its in a town of < 2000 people which pretty much guarantees noone from Adelaide or interstate will be interested, which leaves local developers. Those all seem occupied with much much larger subdivisions that are all in progress (started before that block came on the market). Its not going to sell as a single block because it is opposite the ex-sawmill vacant lot (who wants that view?) so it will only sell as a subdivision project - where two of the three blocks won't face the vacant lot - and that drastically limits the market.

It also suffers from being "too small" being only 3x600sqm blocks (14x43m each). I commented on being interested in the block to one of our tradies and he was like "three? That's not big enough for three, that's not even big enough for one house, why would anyone want to buy that block".

Its a good deal purely because noone sees the potential. There's nothing wrong with building cheap, small houses on small blocks and selling them well under median to FHBs or less-rich retirees. And you'd probably never be able to sell the third house at all since it will face that vacant lot, that one will forever be a lower-grade rental, which I have no problem with

Here's hoping that it stays for sale long enough for the owner to lower the price more and get desperate enough to take lowballs

 

[Aaron Sice]

we can collectively feel bad, I offered them out to forumites (here and on the other forum I think?) but was told I was a spruiker and the local market was a bubble waiting to pop Got a dozen or so away for mates and associates and a couple myself, but gees that was a good one...

2 years too late.....

 

[Ocean Architect]

A bloody horrible story

I commend you on your restraint in not launching molotovs at your bankers house every friday from then until forever.

 

[intrigued]

Not completely missed but certainly still spew over it, it was extremely frustrating.

In 1989 Karratha a radio ad, 7 homes for urgent sale between $78k for 3 off 3 x 2 and $87k for 4 off 4 x 2, with 6 months rental return guaranteed for 6 months. (@ 21.0%) The house were just over 18 months old.

Company was finishing up on the Burrup and wanted out (EPT), we tried organize finance for as many as we could, but only organized one, no problem then called the RE agent told him that, the bank told us if we saved ex$ for 6 months the bank would give us finance, so we will give them unconditional offer with 6 month settlement, less the rent they would have paid us $69.5K they came back with counter offer of $70K.

We then went back to the banks with 24% rental return for more homes and still said no.
They could not move the other homes, as it was D & G, I begged our bank for more finance without success, only years before you could ring your bank for an over draught tell them over the phone how much you needed and produce an order for works you were doing and start writing cheque’s no equity required or guarantees as long as you had the work.

Begged family, begged anyone with no hope, all thought I was crazy.

They rented the house off us for another 24 months at $325.00/week first 6months, $350 there after.

Thing was, that the morning I heard the radio ad, I had been at a meeting with a builder mate and two Geo’s from HI, they required us to convert a warehouse to office’s and labs in a hurry to houses a “s**tload of Geo’s” as the head Geo put it and then gave us the “China story”, and that they needed to find more ore in a hurry, everyone in town thought it was all about LNG.

Oh and then, also offered a % of MRM well before it was listed and they only had one vessel for what I would call next to nothing now days but that’s another story.

 

[Aaron Sice]

In the final wash up, they picked up the income producing factory on 6.5 acres for about 1m of holding and carve up costs, which is now pouring 1.45m pa nett rent into their pockets, and at a cap rate of 10% is worth 14m to them.

Each of the 20 Victorian investors has got their entire 900K investment back, and is sitting back collecting over 72K per year in hassle free nett rent mortgage free money every year.

"it's okay - we weren't exposed..."

pays to be cashed up always - but in all seriousness, this is the proof in the pudding for commercial subdivision.

 

[intrigued]

7 hectares

Dazz

What would a 7 hectares block (just land) be worth around the forrestfield area be worth (industrial) with good access. roughly?

 

[Dazz]

Hi intrigued....according to the latest research - published May 2011, raw land out in the eastern suburbs of Perth - Forrestfield being an example, exhibit the following sales rates ;


Smaller than 5,000 sqm.................$ 250 to 400 per sq metre
10,000 to 50,000 sqm...................$ 160 to 250 per sq metre
100,000 plus...............................$ 100 to 160 per sq metre
Englobo......................................$ 60 to 90 per sq metre


Based on that, I'd be using a figure of $ 150 per sqm metre.


So, 7 ha = 70,000 sqm * 150 = 10.5 million, plus or minus a mill.

 

[buzzlightyear]

In 2005, a 7m x 40m with rear access block in Sth Melbourne, with a nice period home, with plans for extension was being sold. Couple were having a second baby and wanted a bigger place. They bought in twelve months earlier for $582k. Went to close bid, sold for $603k. I had offered $595k.

The REA emplored me that its first offer best offer. After my submission, called me back to say, are you sure that is your best bid. (Reason why I hate closed bids)

It was on the market late last year and sold for $1.9m. (Yes the reno would have cost $400-500k imo). I suspect you could have made that much profit but just leaving it and selling it as it was. Big spew

That $700' k ish profit would have been a nice deposit on a CIP.

 

[wobbycarly]

When I first moved to Geelong just over 12 years ago, there were "heaps" of 2 or 3BR miner's cottages in Geelong West going for between $80-$120k, and renting from between $100-$150pw. Now they start from about $400k!

I asked the bank for money and all I got was "what's your deposit?" They didn't understand "I have equity in another property" and I didn't know enough (then) to ask the right questions.

And once-removed; Dad could have bought a waterfront block in Metung in the early 70's for about $1k. Now start from $1M+ . FIL-to-be - "Why would you buy in Metung?"

 

[Ocean Architect]

When I first moved to Geelong just over 12 years ago, there were "heaps" of 2 or 3BR miner's cottages in Geelong West going for between $80-$120k, and renting from between $100-$150pw. Now they start from about $400k!

I asked the bank for money and all I got was "what's your deposit?" They didn't understand "I have equity in another property" and I didn't know enough (then) to ask the right questions.

And once-removed; Dad could have bought a waterfront block in Metung in the early 70's for about $1k. Now start from $1M+ . FIL-to-be - "Why would you buy in Metung?"

My godfather was offered the Oxford of oxford street NSW in the 70s for a few hundred thousand dollars. He had the money and said no. His spew is still decorating the satellites flying in space

 

[b simpson]

5 acres with water, phone, sealed road, electricity, on a hill and new houses on either side of the block, backing onto national park in ulladulla circa 2003 - $55k.

50 acres with power, phone and water in sussex inlet for $50k circa 2002.

Acerage approved for 100 homes (and surveyed ready to go) near jervis bay around 2000for circa $600k.

300 acres on the edge of burril lake for $300k circa 1999.

As many houses as i wanted in sussex inlet for less than $40K... it pulled above 20% growth for a few years with probably above 20% yield also...

In the late 80's or early 90's I knew about an absolute beachfront in avoca which sold for $150k, then doubled in 12 months...

 

[Telejazzer]

2 hectares a couple of years ago. Owner agreed for me to option the property. My suppose to be backer (Property options guru/mentor/spruiker) didn't go for it. I didn't have the money for the option deed and deposit. After 4-5 months of trying to convince my mentor, the owner got impatient and sold the property at a lower price.

Option to buy = $2.7M which is paying 20% above the market value at the time. Estimated current value = $4.5 - $5M without DA. Between $8M - $10M with DA. Zoned residential and not subject to Growth Area Infrastructure Contribution (tax). I spent 12 months on this deal without much support talking to council, civil contractors and even spoke to a director of a big property marketing company. Oh well, I did learn a lot in the process though.

There are similar deals out there. I'll be more prepared next time.

 

[Tricia]

Yep, I know what you mean. The Boronia/The Basin area has just boomed over that last few years. Some friends of mine bought a house on a large block in Boronia for $115,000 and sold it for nearly $700,000 as a develpment block. Nice!

 

[mattnz]

The property next to my current development site in Gladstone was for sale about 18 months ago.

Sold for $565k, 6 single storey townhouses, DA approved. Would have been $1 million profit in the deal, but I didn't have a deposit at the time and didn't have my current network of JV partners back then.

 

[Ausprop]

how about the one that I am glad got away? sold a house for $2.2m, the guy has spent $400-500k renoing it, plus the $120k or stamp duty, agents fees out say $50k, 2 years interest say $300k, rates, taxes balh blah call it $3m to be kind, now on the market looking for offers from $1.9m - ouch

this one is still on the market.... add another $150k of interest to the above

 

[SamSiam]

4000 odd acres of pristine grazing and timbered forest, several kilometres of pristine aqua blue coral and beach coastline.

Missed it at tender by $100kUS........

 

[Graemsay]

I heard a good "one that got away" story today.

I was out buying a pair of shoes, and chatting to the older gentleman who was serving me. We ended up discussing Richmond-upon-Thames, where I used to live, and he said that in 1962 he and his wife nearly bought a house there for £6,000.

It was recently on the market for £2.2 million. That's 12.5% growth per year for fifty years...

To put it in context, the average salary back then was £799, so relatively speaking, that would be around £250K, or £500K if you use two incomes. The lower figure will get a one bedroom apartment, the higher buys a small, two bedroom terraced house.

 

[Tony3008]

Richmond upon Thames - Twickenham - is my birthplace and home for 50+ years. When I left uni in 1974 I was keen to get my own place and found a semi-derelict terraced house for £7000 - I was earning £2300. It was all I could afford at the time (strict mortgage limit then 3 x salary + 1 x fiance/wife if you had one). Because of its condition the only mortgage I could get was from the local council at 17.5% fixed! My dad talked me out of it: "you'd be daft to spend £7000 on a house like that" so I let it go.

Said house would now be worth around £400K http://www.rightmove.co.uk/property-for-sale/property-33564490.html and mid-1970s inflation would have melted the mortgage payments in no time. This equates to 10% CG across that period, allowing for initially putting the place in order. I suspect the same would be true of what were once regarded as working class cottages in Port Melbourne, Richmond and other inner Melbourne suburbs. Meanwhile a much newer house http://www.rightmove.co.uk/property-for-sale/property-33328831.html that would probably have been £10-12K in 1974 is now significantly cheaper by comparison.