Fair enough , should have been more specific.
I was saying this from the perspective of investing 100 k in the market as a deposit for an ip .
Cliff
Landbanking Perth @ 50% Discount
- Thread starter Rixter
- Start date
Fair enough , should have been more specific.
I was saying this from the perspective of investing 100 k in the market as a deposit for an ip .
Cliff
Hi jbeena
I don't know the Perth market so not in a position to say .
I've never gone down the path of recommending particular properties ( except on one occasion when I posted a links on properties in an area ( north arm cove ) which was an area where we've just bought a weekender , and that was more of general interest for people who may not of heard of the area. Those where definitely not as investment .
The only IP's in sydney that I think are worthwhile are on my list of properties to look at . Waiting for finance to be approved.
Cliff
Although there have been members who have enquired and one who has invested that doesn't mean that it is safe or trustworthy - merely that the deal suited their requirements and risk profile.
You would need to do your own due diligence and work out if the area is where you want to live, that the developer and development is sound and that the deal will work for you.
For example - I don't know whether or not it is possible to borrow money for such a deal so if you need a mortgage for this then it might rule it out immediately.
It would be prudent to have the contract and/or deal vetted by a Solicitor. The only one I have used is Devita and Dixon Lawyers.
Note: I have done no due diligence on this deal myself except some basic reading.
Regarding return of capital.
> What is the likelihood of a successful application? This might be a very difficult question to answer and could involve high level planning and council knowledge? Presumably it's less than 100% just going off the discount to potential end value.
> Liquidity and exits, is there a market to exit after X years? Is there potential for the time frame to be extended, 5 years into 7 and so on? What happens to the value of the combined block of land when/if a development application is declined?
> Counter party risk, who has your money for these years and what are they doing with it? What check and balances exist and what happens on/if bankruptcy?
That would be a starting list.
Also these questions could well and truly be answered (Prospectus?) and the deal could be an excellent one, just that all I see so far from the thread is a clearly defined value for a finished block of land and no coverage of the potential risks.
> What is the likelihood of a successful application? This might be a very difficult question to answer and could involve high level planning and council knowledge? Presumably it's less than 100% just going off the discount to potential end value.
> Liquidity and exits, is there a market to exit after X years? Is there potential for the time frame to be extended, 5 years into 7 and so on? What happens to the value of the combined block of land when/if a development application is declined?
> Counter party risk, who has your money for these years and what are they doing with it? What check and balances exist and what happens on/if bankruptcy?
That would be a starting list.
Also these questions could well and truly be answered (Prospectus?) and the deal could be an excellent one, just that all I see so far from the thread is a clearly defined value for a finished block of land and no coverage of the potential risks.
I don't always agree with every thing Rixter does , but he is very thorough with what he does , however his aim with this may be different to you, and I'd expect its money he could afford to loose if it doesn't come off.
Is that correct Rix ?
Cliff
Correct Andrew & Cliff - one needs to collect all the prospectus information, carry out the appropriate DD and then make a decision all based around ones personal risk profile.
is it ok for me to put $100k on black at crown casino?
IP in Sydney, have a look at various threads, posts on West Syd, formite - Skater....
Me to , but I want a money back guarantee if it lands or red.
The short answer to your question is no.
Cliff
Cliff
Jbeena - we are not going to tell you if it is ok or not for your own circumstances. You need to contact the company running the deal, look at all the information and decide (with or without professional assistance) if it is right for you.
How about 0 or 00
What gets me is you bet on evens and if it lands on 0 or 00 you still loose
