New investment opportunity

[urban cowboy]

thanks Craig - appreciate your sentiments!

BV - they are certainly not for everyone...with that we whole heartedly agree!! However for those in this sort of market - they are exceptional!

With regard to price, they are actually very well priced if you look at what is around to compete with - anything under 400k gets jumped on pretty well nowadays anyway, but then take into account the sizes of these compared with standard Brisbane town houses and the premium for being on a golf course with views and they are very good...and given there are small homes locally going for around 600k etc.

I didn't price them either so am not defending any decision I made. Values are based on Michael Matusik's recommendations anyway - who am I to argue with him?

still - appreciate your thoughts - thanks for your post!!

 

[geoffw]

As you are probably aware, a full interior repaint is not cheap and then there is carpets and the like as necessary too.

I've just been through the exercise. DHA got quotes for a full repaint (interior and exterior) for a 3BR house (with a very big living area)- it came to $9K. It was half carpeted, half tiles. The carpet quote was $2.5K. So certainly there would be a LOT of change left over from 10% of any of those prices.

 

[urban cowboy]

Absolutely agree with your overall point Geoff - and with Marg as well!!

have had a long conversation with one of the owners tonight to hash this out a bit and pass on concerns raised here.

The concept of the 10% came from other large managed developments including high rise apartments, resorts and retirement (and over 55's) villages and the like. 10-20% is common as a sales fee and often will take a percentage of the capital gain as well.

Once I went through the issues and concerns with them - they have promised to review this point. In the interim I have been authorised to negotiate this point and see what is on offer from prospective purchasers. Any % will need to at least include sufficient for agency fees (2.5%) plus any marketing if required and enough for a light refurb etc.

Certainly there will be the opportunity to use ones own agent now, but that will come after the developments existing database has been exhausted.

does that make sense?? comments??

 

[urban cowboy]

OK - Had a meeting with the developers last night and brought the concerns about the ten percent to a head.

In short - that 10% sales cost is now 5%...

That is to allow for the full REIQ commissions (2.5%), ALL legals (owners as well) and any marketing and administration costs (new lease lodgement etc.).

SO, thanks guys for your thoughts on that one - it helped a lot to be able to defer to the opinions of seasoned investors.

cheers
UC

 

[urban cowboy]

Thanks to those folks who contacted me privately with some ideas and suggestions...

for your info the property is now live on RE.com with some more impressions and piccies... http://www.realestate.com.au/105909945

The best competitor to this development has just started advertising. The Petrie on the Park development (http://www.totalprojectmarketing.com.au/pages/realestate.php?listing=84&lo=MHx8fDA=) is selling from $395k for a 3 bed 127sqm townhouse over three levels with a SLUG.

Question for those out there who understand marketing - how would you target a market outside your immediate area??

i.e. i have heard of a couple of developments around the place now that are targeting only southern or overseas investors - how do they do that??

 

[depreciator]

i.e. i have heard of a couple of developments around the place now that are targeting only southern or overseas investors - how do they do that??

Seminars.

I remember Central Equity used to do a fair few OS seminars.

Recruting for seminars can be tough. You'd find some southern planning groups with data bases who might do client seminars, but they're going to want a comm.

Scott

 

[urban cowboy]

Cheers Scott...

that's one idea I hadn't put a lot of thought into yet.

Comms is not necessarily a problem - will suss that one out a bit more...

thanks heaps!!

 

[Lynchy]

Hey Urban,

Just wondering how everything is going?

Havent heard from you for a while

 

[urban cowboy]

hey Lynchy!! sorry, have been out of action for a while...

things are all good - very good indeed. We have the sales we needed to get moving, with contracts being sorted and are just waiting for Council to sign off on a couple of things before we can push some dirt around.

Best guess is within the week hopefully.

I was considering starting a new thread once we are underway and using it like a blog so the community here can follow the progress (and heartaches) of a large scale development from the first dirt being turned to completion with progress piccies and the like.

with any luck this may launch next week - once the bureaucrats stop stuffing around with minor details!!

feel free to ask any specifics - happy to answer them!

cheers
UC

 

[Lynchy]

Thanks for the update Urban,

Would be very interested in a thread with constant updates on how the development is going!


Keep us updated and good luck!

 

[Lynchy]

Oh also just wondering if you have had any enquiries from people on Somersoft in regards to purchasing any of the townhouses?

 

[urban cowboy]

The hot news off the press is that we are hoping to start pushing dirt around within the next week - so once that happens I will create the thread and post updates and piccies in there.

no queries from somersoft folks - but then again that isn't why we posted here - it was as much for me to gain some insight from seasoned investors whose opinions I am used to gauging so I can know where to put them in the marketplace and to also give some unique insight to folks here who are interested in following a large scale development from first release to completion with all the issues and "fun" in between!

(saying that - we can offer expected returns of above the magical 5% figure!! hehehe - sorry, couldn't resist!!)

 

[urban cowboy]

sent this out as an update to our agents - further info as to where we are at and an updated pricing list.


There was a fair bit of comment originally that the prices seemed to be high...would like some comment on the below - I can sell the next four with 15% off as a bit of a pre-Chrissy flutter...means a few are well below valuation...


comments???


------------------------------------

Good Morning,

Time to touch base with regards to our progress at One Mile – we have had some delays this past month with council red tape, but now all appears to be sorted and we are elated to announce the commencement of earth works from next Monday. We are still aiming for completion late Easter, but will be offering a June completion to the general public.

Now for the really good news from a sales perspective...

1.Most are now aware, but there are now no exit fees – any future sales would be treated as per a normal property i.e. contact preferred agent and sell at REIQ etc.

2.For the next four properties I can put a 15% discount on the table – prices pre-discount are listed below, so you can take 15% off. This puts a few of the prices below the current HTW valuation and will ensure a rental return above the sought after 5% in raw terms. I stress this is only for the next four – so let’s get cracking on them and see what we can do!!

3.We will be holding a mini-launch in the not too distant future – a turning of the soil party if you like...consider who you would like to invite along. I will provide more details of this soon.

Unit #--List Price--With 15% Discount
1----------sold---------SOLD
2----------499---------424150
3----------505---------429250
4----------505---------429250
5----------520---------442000
6----------525---------446250
7----------535---------454750
8----------535---------454750
28---------Sold---------SOLD
29---------Sold---------SOLD
30---------440---------374000
31---------450---------382500
32---------460---------391000