Is anyone interested in joining forces for a small development in Melton VIC?

[italianstylezz]

Hi all,

I'm in the process of buying a large block of land in Melton's west (the better area of town) and am in need of a funding partner for the development of 2 units / houses.
If anyone is genuinly interested, I'm happy to provide my idea and the figures - or would you like for me to advertise the details in this thread?
You would need to be able to afford at least $200k and have a general idea on the building / sub dividing process.

Cheers,


Rick

 

[Dazz]

Is anyone interested in joining forces

I'm happy to join forces with you Rick.

My forces include an ironclad contract that was written by my solicitors to protect my business interests only. You'll have to stump up all of the cash, including my low low 35% pay-no-more all encompassing fee.

I've just got one small teensy little waiver form that excludes my company from all and any responsibility, including anything that you actually pay us to do.

If not, you may to contact my good friends at that other famous Melbourne property developer. Their contract is completely different

 

[italianstylezz]

Thanks for your offer Dazz, I have to admit I'm a bit confused as to what you actually offering me and what you're assuming I'm planning.
I'm simply looking for someone who is interested in going 50/50 in purchasing the land, subdividing and building the 2nd house / unit.
I'm open for discussion on figures and ideas. Of course contracts and agreements will be included.

 

[oc1]

Anyone interested would want to know what you are bringing to the table. e.g. previous experience, money etc etc

 

[italianstylezz]

No worries... butisn't it obvious? it's a 50/50 deal so all the costs are cut half way down the line, which means someone who can only afford $200k (like me) can get into this situation and make a modest profit, whereas they may not be able to otherwise.
I'd be funding half the operation and need someone to fund the other half. Obviosuly this wouldn't suit someone who can just go and do this completely themselves, but maybe there's other people out there in the same boat as me - I have 2 IP's that are negatively geared and unless I sell one of them, I cannot afford to fund this entire development myself.
Cheers

 

[Player]

Is there a dwelling on it at present? If so, why not keep the rental box as an IP and do the development yourself when you are ready financially?

If you are dead-set keen to go ahead regardless.....you will need to share numbers here. What are the comparable sales for your end product and how easily are they sellling in that area, which I would envisage may have some mortgage stress. What are the costs to develop and if you are intending to keep the constructed boxes (ie one each with your JV partner), what is the return now. If your feasibility doesn't stack up to at least 25 % (maybe pegged back to 20 % with any construct contingency), no bank is likely to touch you without experience. And you should expect that return regardless of whether you are selling them off or keeping and new rental stock.

You'll need to provide more figures for consideration....and I'm wondering if this shouldn't belong to Caveat Emptor threads

 

[italianstylezz]

Thanks Michael (Player), The land is vacant.
I wasn't able to open the thread in Caveat - I don't have sufficent access
In regards to figures, i'll be able to provide the details once I get home as all my data on my home PC.
Some general figures for now -
Land $92k - $95 (including subdivision costs)
Construction costs can vary depending on size of home, but approx $120(2-3 bed) - $150k(4 bed) ea
Selling costs also vary depending on what's built but I have a few plans and have viewed similar properties sell for under 60 days on the market between $209 (2-3bed) and $275(4 bed), so after most other expenses aside there still should be around $55k gross (before repayments, and other running costs) and before any deductions.

Regarding the loan, I work for one of the major banks, so the lending is not a problem - just limited to $250k max.

I also have some data on past sales reports and other useful information such as demographic data etc..
New homes in Melton sell twice as fast as older homes, as older homes tend to be the same price as newly constructed homes.

On the other hand, subdivided land for under $80k is probably the best seller, so if I can't end up finding anyone to jump in with me, I might just split it up and sell them off seperately (with or without plans and council approval).

More info to come...
Cheers!

 

[The Y-man]

.
I wasn't able to open the thread in Caveat - I don't have sufficent access

Moved it.... not sure why you were not able to create....

The Y-man

 

[geoffw]

Moved it.... not sure why you were not able to create....

Because you need a posting history in SS to post on CE