To sell 60 properties in WA - how?

[boomtown]

Thank you for your sporting nature and recognising that anything posted on this forum is fair game.

*Edit* I was going to suggest sale of the entire package through a UK brokerage house to a UK investor but then I remembered they would never get FIRB approval. Bugger.

*Edit 2* I recall some LPTs were considering getting into resi. Maybe this would be a suitable transaction for an LPT to pick up. You should contact some high end property brokers and / or investment bankers to see if they can shop it around within Australia.

Best of luck in your endeavours.

 

[Kamak]

Well if you are going to sell 10% below bank valuation and gaurantee above market rents for a year dont bother sending me any vouchers, both those will do me nicely

Good luck with it all, not sure why the vendors dont just pull equity out for the deposit.......

 

[marg4000]

Why would the deposit be larger than normal?
Marg

 

[willair]

THE QUESTION - how else / what other techniques can you use / etc to get these 60 properties sold ? [/b]

You could always try if the location is close and group the properties
into 3 lots and auction the properties off all at the same time over several nights might work,if the public knows that the properties are too be sold undervalued,as i know nothing about the WA market you would have a better understanding of what value is..willair..

 

[Token Funder]

Its none of my business but:

1. No finance means unsophisticated counterparties.
2. PPORs fully paid off means they most likely old (senior citizens).
3. Providing a substantial deposit in advance means the unsophisticated old counterparties are taking on significant exposure to credit risk of the developer / build quality which they likely don't understand.
4. Selling their houses in advance means they have nothing in the event that the builder falls over or goes into liquidation.

Personally I would stay a 100 miles away from this one. Go ahead and cut the deal but realise what you are getting yourself into (ie perhaps an exclusive interview with Today Tonight and quality court time).

Reasonable supposition.

 

[Sean]

Property WA, are you the developer, a financier, or a middle man onselling the properties from a developer? Just wondering where you fit in given the hypothetical...

 

[WASP]

Thank you for your sporting nature and recognising that anything posted on this forum is fair game.

*Edit* I was going to suggest sale of the entire package through a UK brokerage house to a UK investor but then I remembered they would never get FIRB approval. Bugger.

*Edit 2* I recall some LPTs were considering getting into resi. Maybe this would be a suitable transaction for an LPT to pick up. You should contact some high end property brokers and / or investment bankers to see if they can shop it around within Australia.

Best of luck in your endeavours.

same thought in regards to instituational investors and the impending government rental garuantee scheme

 

[Sean]

bs price of food

- a $50 a week fuel voucher to each buyer ($156,000 total cost)
- a $50 a week woolies/coles voucher to help with the bs price of food

Re the bs price of food and fuel, do you think housing inflation and movements of international capital from bubble to bubble have had anything to do with that? As the 'investment clock' hands turn off property into commodities. And it looks as though house prices in the US are continuing to plummet with increasing numbers of foreclosures, not decreasing, and this credit market in turn has been propping up lending in Australia. You might have trouble building up your $2m 'cashbox' unless you actually have $2m in cash right now.

 

[Sean]

same thought in regards to instituational investors and the impending government rental guarantee scheme

I think he has all his buyers lined up already, without requiring such handouts as the mooted rental affordability scheme. On the NRAS though, it's funny how such brave entrepreneurs rely on govt handouts and middle class welfare to landlords like negative gearing and the NRAS so they can be free of govt handouts in their retirement and feel proud of themselves.

 

[TheAnalyst]

Property WA, are you the developer, a financier, or a middle man onselling the properties from a developer? Just wondering where you fit in given the hypothetical...

I have similar questions? Why donot you (Property WA) just advise what the exact situation is? My guess - you might be a developer who wants to sell those apartments in the city (maybe you already asked them to sign somekind of agreement); or you are a land developer (less likely). The more you said here, the more it shows your vested interests in it.

 

[accumulator]

Probably not ideal, but here is an idea.....

You say you have $2m....
There are 60 properties...
You have $33,333 per property.
You say that the properties will be 5%-10% below market.
And range from 400-600k price.
Sounds like > 10% on each property as equity position.

You could probably buy them all, rent them out and sell them down over time assuming you can service some of the debt with proceeds from the development.

 

[yadreamin]

I reckon l may have worked this out.

there is a company that builds Lifestyle villages.
They are a gated community and the homes are all demountable/portable.
You buy the house and lease the land.
You pay a weekly rent which is set depending on the facilities provided in the village ie. pool, clubroom , bowling green and other sporting activity facilites.Rents are of $100 p/w +
The houses are very close together and puts a whole new meaning to down sizing. Very popular with the poms these villages.
The villages are focused on the active retired age group not elderly that need care.
You have to pay cash to buy these homes cos the bank wont touch them so the people who want to move into the village have to sell their PPOR.

There was a huge rush on these places early in the WA boom. People got good quick money for their existing PPOR.Then had spare cash to spend.
The villages were flying and so the developer was able to continue to build and provide good facilites.
Once the homes stopped selling the cash flow with the developer started to dry up very fast .

So now the developer has 60 + offers to buy[into the villages] on condition of sale of PPOR.
The one thing l have noticed with these villages is they have not dropped their home prices [maybe by 10k] but the market out side has tanked.

So as it takes longer to sell in this market this group of sellers are prepared to drop their prices to get into the villages[will they be sorry or not]
Has Propery WA got a list of these sellers. sounds like it.
As an investor its always good to buy under market value.
I have found an example of the type of Village l am refering to.
This is not the only company doing this so please see it as only an example

http://www.nlv.com.au

cheers
yadreamin