The Interview #13

Good onya Tracey - a top read.

Excellent to see you grit your teeth and tough it out when the going got a bit treacherous. Enjoy the rewards from taking the risk and pulling it off.

Onwards and upwards !!! :)
 
Shucks, thanks Dazzling and Steve! :) You sure learn a lot quicker when the going's tough and your financial future is in jeopardy, hey? ;)
 
great read Tracey..!

got to love your positive, optimisitc attitude -

and Thanks Ruby for organising another great interview !
 
Thanks very much Tracey, (and Ruby), really interesting read.

Lol on the ungated, gated estate! :)

Well done on your student acc project property, great footwork...enjoyed reading this all very much, and thanks for sharing all the happenings so far.
 
Nice interview Tracey - was very refreshing to read, and has given my partner and I some extra enthusiasm to get the ball rolling a little further :)

Thank you for spending the time to share with the community!
 
Great story Trace;

good to see how success comes to those who persevere, take a calculated risk and leap of faith, and learn from the mistakes.

And even had time out for a pair of twins.
 
Very interesting interview Tracey.
Many would have crumbled with some of the obstacles you have faced.
Good luck with your future endeavours.
 
great interview and very solid advice for people at every stage of investing ..

thanks for the insights into the legal side of transactions too btw.

well done on the achievements so far and all the best to your future ambitions
 
Thank you all for your support. I was a bit apprehensive about sharing, I must confess. But you guys are the best!

Yes, Stan, the legalities are amazing. It still somewhat staggers me that my solicitor can so blatantly screw up and cost me nearly $100K, and not be held responsible. Even though I eventually got the dispensation, the combine drain debacle still cost a bucket in delays and lost rental, and we nearly went bankrupt. Not to mention the intangible costs - to our mental health and our credit rating. But because I'm a legend :p and managed to salvage a profit out of this debacle, the court takes the view that that's a profit I wouldn't have had if my solicitor had done his job properly, and hence even though he was negligent, I have zero damages and he owes me nothing.

My intuitive response was "yes, but I would have had a bigger profit if my solicitor hadn't screwed up", but I understand now this is the difference between contract law and tort law. In other words, if the vendor - who we had a contract with - had told us there was no combine drain, then we'd have a cause of action against them for the extra costs. But the laws covering damages attributable to third parties to the contract are covered by torts, and it's a different standard for measuring damages.

Anyway, the whole debacle is also outlined, with pictures, in API magazine's "Our Property Nightmare" in the April edition. A dubious honour, that one!!!! I'm hoping to "move up" to a different section if ever I make it into the magazine again! :D
 
Hi Tracey, thanks so much for telling your story and sharing the ups and downs of your journey. Great read...lots of lessons for me to learn from your experience.

Many thanks to you too Ruby. I really do enjoy the "interviews".
 
Do you mind me asking what your insurance and fire levy are for the student accom?

And does it look anything like this?
Thanks, sailor and WW. Yes, that's my property, WW. The insurance is done through a broker who specialises in multi-tenancies, and I have a whole bunch of different policies, which I think add up to about $5K a year. There's public liability, one for the building, one for the business etc... haven't gone too much into the detail because my broker is a gem and I know he's asked all the right questions. I don't have the contents in common areas covered :eek: because it would be prohibitively expensive, so I "self-insure" these.

With regards to fire safety, I outsource it. I have a consultant - who referred me to the broker, they both specialise in this niche - who set up the fire system, inspects the property monthly, developed the fire safety management plan, responds to alarms, everything. If there's a fire and it ends up in court, HE goes to court on my behalf. It cost me about $10K to set up initially (signage, the FSMP, emergency lighting, smoke alarms, extinguishers, control panel etc), and I pay less than $1K per year for monthly inspections, updates to the FSMP, all required testing, etc.
 
Tracey, am I missing something? The last photo on that link is a little cottage - no way that would have 13 bedrooms? Is it deceptively deep?!?
 
WW's quite right. Deceptive, isn't it? And it actually has SIXTEEN bedrooms. :D It is very deep, it has the attic lined (3 bedrooms up there), and it's on a block that slopes down and away from the street, and there are another three bedrooms and a kitchen downstairs underneath. Actually, what the heck, a picture's worth a thousand words...

080313layooutforSomersoft-1.jpg

The floors are fairly well lined up in this diagram, with the street at the bottom.
 
appreciate the sharing OP.....I see a lot of upside for this sort of thing over the next 10 years.....think you might do better than expected with growth and cash flow........though there's a lot of pressure on the BCC to relax the town plan and building code to allow more stuff like this.....but I still see demand outstipping supply.

The ppl I talk to reckon more mainland Chinese will want to study in Oz and holiday here as their middle class builds.....will be interesting to see how the Chinese handle their rolling out of tertiary education .....and what emphasis they put on English as a second language....if they scale up english, then you'd expect more students spending a year over here.

and then China's success will drive Vietnam and Malaysia to seek education or english assimilation here too....possibly....

Checked the sales history on your property.....seems a couple of guys may have tried to redevelop and given up on the sewerage.....power to you for taking the risk with the big commitment....soli's can suck huh.....

BTW, I'll never agree with your politics...and am starting to believe you aren't a glazed eyed Dymphna devotee..... :p
 
wow, very deceptive!

Few follow up questions Tracey:

- Is it strange that there isn't a bigger inside common area?
- From satellite it looks like there are no carparks on the premises?
- Is the width of the block around 11m?

It's giving me ideas on Enfield! :D Probably wouldn't be able to have second level, but by my quick calculations I would be able to build 2 of the main floor dwellings side by side for a total of around 15-20 bedrooms (give or take). Haven't really explored this avenue yet.
 
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