My "Armchair Development" Experience

[FIDO]

I think they have a pretty good buffer because they make a $ on the build and potentially other revenue streams .......can't prove it so wont go further.

Fact is there are other armchair suckers losing money and they march on with recurring issues - makes you wonder why....

As per my original post investor beware and learn from the lessons learned - give it a miss.

 

[FormerLurker]

Any further updates? This is one I've been keeping an eye on.

 

[Crido]

Add to that one-sided contracts, GST implications and cost blowouts. Some ordinary build quality, oh and they also select strata managers....

Has set me back 10 years...I am such an idiot.

Hey all,

I'm back to post an update. Been reading the discussion since I've been away - interesting!

FIDO, what exactly should we watch-out for when they go to select our strata managers? I have mentioned to EOS we might like to choose our own, and I believe (if my memory serves me) they were ok with that. The only problem might be getting all 12 investors on the same page, which is why it might just be easier to have them appoint the body corp managers.

So an update ... well, we continue to receive weekly updates on a Friday, however when I recently asked for these updates to include an audit of the build schedule, I was told that this was unrealistic as the schedule "ebbs and flows". Fair enough, however - given the history of delays to the project so far - how are we meant to keep tabs on our schedule if the builder and EOS "ebb and flow"? It seems this project has "ebbed and flowed" for way too long already!

Anyway ... the build is progressing.

I can't report much more unfortunately.

Cheers,
Mick

 

[MTR]

Odin Street

This is their latest development, figures below:

The new figures are below, dont have the address, other than Odin Street, Balcatta I think?:

Two Bedroom
Initial equity required $151,000
Final loan amount $253,000
Total cost to investor $404,000
Current valuation $465,000
Est profit $61,000
Development margin 15.08%
Rent return 5.01%

One Bedroom
Initial equity required $117,000
Final loan amount $196,000
Total cost to investor $313,000
Current valuation $360,000
Est profit $47,000
Development margin 15.08%
Rent return 4.7%

Just wondering why anyone would bother with this?? margin is bad, rental yeild bad.... and even if they are correct with DD figures the market is falling, therefore there is a strong possibility that these margin will be lower on completion.

High risk proposition have to be crazy or totally suckered to jump into this investment? Just go out and buy an apartment from someone who is desperate to sell am sure you could do better and no build time.

MTR

 

[Crido]

Hi all,

It's very sad to hear that these Somersoft forums will be closing and "read-only" in the near future, but it's understandable given the costs involved.

I would like to say thanks to all involved - what a wonderful resource it's been for so many of us!

The new "PropertChat" forums are continuing the Somersoft legacy, and I'm sure they will be just as useful, so here is a link to the rest of my experience with EOS and Bird Property Group's 33 Windsor St, Perth development:

https://propertychat.com.au/communi...developer-experience-cont-from-somersoft.512/

Happy reading and cheers,
Crido

 

[hobo]

I'm glad you are continuing the story over at PC, Crido - it's been interesting reading so far.