My "Armchair Development" Experience
- Thread starter Crido
- Start date
Yes, not the best for the budget, that's for sure!
Just had a good chat with the developer. Reason for blowout in the timeline is he underestimated from the start, so hopefully now this current timeline is more realistic and they are able to adhere to it! At the same time, however, there is a lot that's out of their control.
Remaining hopeful!
Cheers,
Crido
Time will tell, unfortunately I think they outsource everything, therefore there is little/no control.
Let's hope the budget does not blow out, as the investor will be wearing this.
I would also want to know if the Directors of EOS have purchased any of these deals, whether they have any "skin in the game".
Good luck
MTR
Until you go to site there is this large grey area which can suck so much time that is very hard to estimate. Luckily I only have to answer to myself (plus DH who says "what's the hold up!!").
No way did I think Gwelup would take 12mths from offer to go to site and the pre-site side for Highgate is at 6mths and will head surely to 10mths.
When I was building land and house packages and I built quite a few, they all came in at the estimated building time, however with the multi unit developments I am sure its a different ball game and I will find out shortly.
I hope I can keep my project on track, or learn some lessons along the way
no, not yet, I always say "multi" cos more than 1, I should say 3 unit development, not at that stage yet, I am a spectator at this point in time.
you can learn a fair bit being a spectator!
Absolutely, I am sucking it all up.
OK, back to this thread, I think what Myf mentioned very important, if you have control of the project at least you can strategise and reduce risks of blow outs time/budget.
This is in part why I am not keen jumping into syndicates etc, I guess all to their own
Any updates Crido??
Here's their latest project
http://eosproperty.com.au/properties/perth-investment-property-coming-soon
Here's their latest project
http://eosproperty.com.au/properties/perth-investment-property-coming-soon
I must admit I've been following their developments. I'm not liking the cannington locations as much as the north Perth ones.
I'm still contemplating buying in to one of their projects - I'd like to see some completed projects in Perth first though.
Crido - how involved are they once the process starts? My understanding is they set up the joint venture, appoint an independant project manager & sort out the construction loan. Once that is all done do they wash their hands of the project (as there is a project manager for the building side of things)?
On a similar note - I presume the EOS guys make their money by finding a site with potential for more than 20% profit - then sell on the units at 20% (which they would get through the initial 'deposit'). Is that roughly how it works?
The above is from my first post ... somewhat explains the roles of EOS and Bird.
Cheers,
Crido
Hi Crido
Any updates on this?
I don't believe this company have completed any projects yet, so very curious to see how this all works out.
Seems like they are now sourcing properties in outer suburbs, Beckenham, Cannington, I am guessing its harder to source inner city development sites.
Cheers
MTR
Any updates on this?
I don't believe this company have completed any projects yet, so very curious to see how this all works out.
Seems like they are now sourcing properties in outer suburbs, Beckenham, Cannington, I am guessing its harder to source inner city development sites.
Cheers
MTR
Yep, inner city Perth sites are getting really hard to find. I guess it goes well for Capital Gain if you are already in the market:
Apparently two or three of EOS's Pilbara developments are due for completion soon. Very interested to see how these go!
Tenders for our Windsor St development are in from three builders, so a builder will be chosen soon. The builders will sign a 14 month contract.
EOS are discussing finance with various lenders on a regular basis. More on this soon hopefully!
Thanks for the reminder to keep this post updated!
Cheers,
Crido
Unfortunately, I think investors will take a hit with the Pilbara projects, with 25% drop in values and rents, currently oversupply of both.
