Elizabeth Downs -Hot lead for low cost Mortgagee Sale

D.T. said:
So you're saying it'd be similar to those last 2 project threads you've written up Erica? :)
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yeah- is this just a case of someone not knowing what they are doing (just like me) and losing money in an epic way, or is there genuinely something I am missing?
 
Erica said:
yeah- is this just a case of someone not knowing what they are doing (just like me) and losing money in an epic way, or is there genuinely something I am missing?
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Sorry, was tongue in cheek. And nah completely different :)

I honestly don't know what they were thinking when they did that sub
 
D.T. said:
I honestly don't know what they were thinking when they did that sub
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Makes me feel quite a lot better to know I'm not the only one that has ballsed things up.

There is lots to learn from other peoples mistakes.

So if this pair was left on the original 900m square (ish) lot would it still achieve about $250,000 today?

Good thing one side was bougt in 1995 for $34k and the other side in 2003 for $80k - they might just break even if it has been cash flow positive all that time.
 
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I'd take a stab to say that anyone who think's it is a good idea to do a hammerhead subdivision on a pair of semis in Elizabeth isn't doing enough DD to realise their reduced capital values.

That pair of semis if not subdivided and in reasonable condition would sell on the market for 275k.

I've seen a lot of amateur developers taking hits because they don't do their figures accurately. Many confuse activity with profitability - you can subdivide, build two properties and LOSE money very easy.

Meanwhile if you factor the time, money and energy expended into some projects compared to just buying an undervalued/poorly maintained property and complete a cosmetic renovation where you can make 20%+ for a minimal capital and time cost.
 
What about a subdivision in elizabeth on a corner block so the original house is retained?

I bought the house for 150k + stamp duty 8k

Planning to do subdivion of 1 new allotment 30k

Do some renovations on existing dwelling 5k

Hopefully sell new block for 75k ( cheap but would have to be to sell as most blocks are 85-90k)

and sell original house for $150k again.

Profit is only like 20-25k doesn't seem worth it.

May as well just keep renting it out and don't bother with sub division as am getting 9% return as is
 
Joeyv said:
What about a subdivision in elizabeth on a corner block so the original house is retained?

I bought the house for 150k + stamp duty 8k

Planning to do subdivion of 1 new allotment 30k

Do some renovations on existing dwelling 5k

Hopefully sell new block for 75k ( cheap but would have to be to sell as most blocks are 85-90k)

and sell original house for $150k again.

Profit is only like 20-25k doesn't seem worth it.

May as well just keep renting it out and don't bother with sub division as am getting 9% return as is
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I think you answered your own question. :)
 
Joey , you could possibly get 3 out of that corner block?

But yea, same as mine, the numbers don't quite stack up yet but happy to collect the cf & cg from them for a few years til they do
 
D.T. said:
Joey , you could possibly get 3 out of that corner block?

But yea, same as mine, the numbers don't quite stack up yet but happy to collect the cf & cg from them for a few years til they do
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Yea could get 3.

But thought If I subdivide just one the original block will leave a balance of just over 600sqm enough for future sub division again.

My plan was to make the original house an attractive return also so that it will sell for more than I paid... Maybe I am being to hopeful!
 
I think you're better off putting those funds into more properties. Spread the asset base wide to get a good foundation, then go up :)
 
Have to meet with bank see how much they will lend me now.

Property I just bought is $90 per week positive cash flow.

Just need to replicate this 20 times lol
 
Always deal with same person at bank who is pretty knowledgable about loans etc.

Don't know if a broker could do a better job.

I guess I could search around for discounts but currently paying 5.05% with 475k debt. Am I getting ripped off?
 
5.05% is a touch high - though rate isn't the only thing. Go hard with a singular lender and you may find yourself backed into a corner one day, when your serviceability crumbles from singular lender exposure/policy exposure.

But that's a conversation for a different thread. :)
 
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Swearengen said:
Might be a controversial statement on a forum full of brokers but my strike rate approaching the bank directly has been much better than going through s broker.
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This is a topic for a different thread, but I'm betting most banks will kick you out of bed around the 1.5mil mark and say you've had enough. Then you'll have to go find somewhere else that'll accept you. Meanwhile you won't be able to pull equity out of the original place because you're already at max with them. So to me, a broker is more about making sure everything is in the right places and for the right amounts so that there's no upcoming potholes.
 
Did anyone make it down to this one today? If so, how much did it go for? I wanted to go, but wouldn't have been able to do my due diligence in time without a lot of stress.
So I'm hoping that it didn't sell, but don't really think so.
Otherwise, there's always another one.
 
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