Sorry to hear that ausprop. would've been good to follow a project of this magnitube from start to finish. good luck with this new direction. oh, and how did this affect your relationship with KPH - hope it didn't put a strain in as people are far more important than profit. would be interesting to see how hurdles affect partnerships.
Toe in the water
- Thread starter Ausprop
- Start date
yes it is a shame as it would be an awesome project for the resume. still, we have a hand in it and completing it will earn good credentials with the bank.
KPH is a realist and accepts it for what it is. he has had a few other issues to contend with that are unrelated to this and hence we don't see him post here anymore.
KPH is a realist and accepts it for what it is. he has had a few other issues to contend with that are unrelated to this and hence we don't see him post here anymore.
..............we have been very fortunate to find a parter that, whilst benfitting from our losses, will still allow us to get to completion. Looking to wrap that up asap now..............QUOTE]
Good perspective Ausprop.
Sharing some of the spoils with the rescue party (and avoiding an ongoing non-productive interest bill) is better than keeping 100 % of nothing and waiting ( paying) for looser lending conditions.
Good luck moving forward
Congratulations!
Is there any chance you could create a website for us to follow giving indepth information and photos of your construction/tenancy journey?
Would love to monitor your progress and final outcome. Haven't ventured this far myself but would certainly like to learn about it for when I do.
Good luck!
Peter
www.privaterealestate.net.au
www.cashflowcalculators.com.au
Is there any chance you could create a website for us to follow giving indepth information and photos of your construction/tenancy journey?
Would love to monitor your progress and final outcome. Haven't ventured this far myself but would certainly like to learn about it for when I do.
Good luck!
Peter
www.privaterealestate.net.au
www.cashflowcalculators.com.au
yeh not good. after sinking a couple of hundred thou into plans etc we had an awesome product ready to roll out. unfortunately we were financed with westpac (luckily not the st george part because they just liquidated all their developers on the spot). nonetheless westpac were brutal, lifted all the funding criteria just as we were about to hit the go button. spent countless months working on alternatives. perth valuers are pathetic bunch of trend followers and were writing the whole world off - some of their doom and gloom was just plain ridiculous (and the agents were no better). long story short, we got flushed out, lost millions. now there is a chronic office shortage. blind freddy could see it coming but no one that mattered unfortunately! so we went for guts and glory - if it had gone thru it would have eventuated perfectly, alas it didn't and it has been one of many painful projects. you win some you lose some and this was a bad one.
thanks. you can only go onwards and upwards. I've followed the hot money and am into the next thing now - hence why I wasn;t posting on here for a long time, but I do enjoy property and think I will always be messign around with it in some form. next 6 months should be telling....
Indeed there is...and what a wonderful position that is to be in.
I was given access to a confidential CBA analysis last week, showing that in Q4 2010 a vacancy rate in office space of 11.3% was predicted to grow to 13% in Q4 2011....but instead it is down to 3.4% and projected to dip below 2% in the coming quarters.
Obviously great news for existing Landlords and 'brace yourself Nellie' time for Tenants.
Your office ressy development on the corner there Ausprop would have been a cracker.
It's a shame the Bankers and valuers couldn't see it. If it had of been built, you would have leased it out for good money in a flash.
Exactly right Ausprop - some people's opinions are worth more than others.
This is why I'll probably never get into developments. The lag time between approvals and actually having the product available is just too long. You can go from hot to cold, or in your case, cold to hot.
The Banks simply aren't willing to support that type of risk at the moment.
I much prefer to let some other poor sod take all the risk in building something, get it tenanted, then come along and offer about 70% what they paid to build it to then simply sit as a passive Landlord and enjoy the long ride of a Tenant working through their Lease term via the natural effluxion of time.
Thanks for the update, another example of why accountants should never run businesses, no foresight
I think you mean bankers or 'risk analysts', rather than accountants.
I gave it a good go but there is just too much to say... so after a few attempts and a few paragraphs I have deleted it all and would just say "steady as she goes, you are on your own and sometimes bad things just happen"
the last part of that will become apparant when I lay out the details of another deal in due course.
