[GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73]

July 8, 2013 - 10:33 am

Depending on what state you are in the average discount we find successful is between 7% – 10% of the asking price.

[GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73]

June 21, 2013 - 6:36 am

Trickeymickey,

Thank you for the opportunity to reply.

Emerald, Port headland & Moranbah have been going for quite some time in various guises as we have previously sold in each area some time ago now, however these areas seem to be typically reliant on either coal or iron ore or both which have copped a hiding in recent times due to the high dollar and “lower” so called demand according to the media. Personally I have always found Emerald to be a bit of yo-yo market which is contrary to what others have stated but that’s another matter.

Chinchilla however has been a completely different proposition for us over the past 4.5 years & beyond. Population is now just over 7,500 with estimates it will be hitting upwards of 14,000 by 2031; McDonalds, KFC, Woolies, Jamaica Blue, Gloria Jeans are just some of the big named retailers now in town along with talk of some other major chains like BCF, Supercheap, Bunnings, Masters, BigW on the radar. The area is backed by many different minerals as well as agriculture and now has 4 schools with the Christian school being the first to accommodate years 1 – 12. Whilst there has always been speculation about the workload slowing in 2015, if that were to come to fruition per say, the research we have conducted with the many local companies, councils, government departments, trade groups & speaking to the locals on the ground whom have inside knowledge, is there are plenty of other industries to take up the slack in this area as it is not solely reliant on Gas construction.

Investing in property particularly in the mining regions is all about research and I implore all potential clients to do their own research before committing to anything to make sure it fits within their desired portfolio goals.

The comment about missing the boat however has raised some questions for me; you’ve stated that you own an investment property in Emerald with the ‘hope’ it will rise in value in the future versus purchasing in an area that is consistently rising in value, this doesn’t make commercial sense to me. Being a professional investor it’s all about the numbers now not the future and even in the worst case scenario if all mining ended in 2015 why not get in now make your profits and get out before that time?

Each town is very fickle with the product that needs to be supplied to meet its local market. For Chinchilla the ‘desired’ packages to suit the towns criteria consist of 650m2 of land or greater, 4/2/2 plus media room located out of flood affected areas and below market value which we supply. Packages are priced from $428,000 off the plan; these same products once completed are currently being valued at closer to $500,000 through Herron Todd White, Taylor Byrne & Fraser valuations. On top of that clients are achieving up to $850pw in rent (furnished) which averages approximately $250pw cash flow positive so it’s a little hard to go past these opportunities as an investor.

It’s all about choosing the right stock in each area that meets local demand as the only properties that will be stuck on the market in the longer term if there were to be a down turn would be those lots that fall outside of these guidelines i.e. 450m2 – 550m2 which the Giumelli Group DO NOT endorse or recommend in any way.

As I always state when investing in property “you make your money on the purchase not the sale” and I do hope this has clarified your questions raised.

[GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73]

June 19, 2013 - 9:10 am

Daniel,

There are many estates in town that are FAR better options than Oasis & Stockwood estates for a similar price. Every man and is dog is trying to flog this stuff at the moment with every conceivable out of area builder trying to promote it also, don't get hung up on the cheap price there is a reason it is cheaper than everything else in town, our research indicates it will have very poor resale value down the track and the rental figures quoted are WELL off the mark.

<Moderator: delete advertising>

[GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73]

June 19, 2013 - 9:03 am

Matt39, Yes they can be but it always remains buying the right block for the right price is where you will benefit as you always make your money on the purchase not the sale.

Some other things to consider as I have personally come into:

*Arborist 2k – 5k

*Tree removal 3k – 5k

*Excavation & dumping 4k – 10k

*Neighbours – arent they a chore 2k

*Council delays relodging for amendments 1k – 3k

*Renovating contingency for the un expected as Qld'ers are very expensive to paint if it is lead paint for example – 20%

*Water & sewage this can be a massive expense 5k – 15k

*Telstra connections 1k -3k

*Power pole installation 1k – 3k

*Driveway costs – this will depend on what council sets as a requirement 4k – 10k

*Retaining – sky is the limit here

*Second house – 75k – 200k

Boundary realignments are the easiest way to go and most cost effective i find, along with enabling you to still create solid profits if you do the job right.

Hope this helps

[GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73]

June 19, 2013 - 8:48 am

Some great comments above.

As previously stated a lot of would be developers understate the timeframes considerably and overprice their end products thus bleed money. One very simple rule to run by is the 80/20 rule meaning take 80% profit and leave 20% in it for someone else something i live by. I personally will not touch a development that does not yield under 35% profit margins as you can always expect that 10% of the margin will be dwindled down at some point in time for something you will never ever see coming.

Get the right team around you. Your consultants are your life blood of a project, a good consultant can make you huge amounts of money a bad consultant will cost you a huge amount of money! 

I always found on the job experience is the best way to gain knowledge, whether you do a JV with an experienced developer, sit with a financier doing loans, do a small development first (duplex, triplex etc) to mitigate risk or doing work experience these are invaluable lessons needed to be a successful property developer.

Developing is a difficult game to succeed in as everyone wants a piece of the pie – especially councils & legal firms, timing is everything & make sure you have the relevant resources available to you at all times just in case (contingency).

[GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73]

June 19, 2013 - 8:32 am

trickeymickey, The Surat Basin hasn't peaked yet it still has a long way to go as prices are still very affordable, however if the council doesn't pull their finger out and mean soon then its only going to be a completely different story over the coming years as they are well short of housing lots due to the flood affected areas of town.

Our clients rents have jumped from $600 – $800pw+ for a fully furnished property.

[GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73]

June 19, 2013 - 8:21 am

If you want to PM me i can give you a list of builders whom to deal with, im sure one of them can recommend a good draftsman.

[GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73]

May 18, 2013 - 1:36 am

Chinchilla remains as an unbelievable investment at this time. Prices have gone up somewhat and will continue to do so in the future, you have to be extremely careful which estates to buy into and putting the right product on it as the wrong product will greatly hinder your future resale options. Don't be fooled by the smaller 450m2-580m2 cheaper blocks and contrary to what people say if you have or do purchase a smaller lot don't expect top dollar rents as it wont happen.

We have clients in town whom are obtaining between $600 – $650pw for a unfurnished house & between $800 – $850pw for a fully furnished house on 800m2+ of land with 4/2/2 with separate lounge/media rooms. Another great addition is an external garage this jumps the rents up further again.

Chinchilla is a unique little town, there are limited land lots due to the flood plans and current town plan with a huge workforce coming to town; population is growing very steadily as too a lot of large retailers, shopping centre etc. It is still my personal favorite investment area hence why i have just purchased another property in town, if you want to know more please feel free to call me at anytime.

[GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73]

May 18, 2013 - 1:14 am

Well said!

[GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73]

May 18, 2013 - 1:12 am

We typically work off an average of 5% per annum, however as Jacqui stated it all depends on what you buy and where. Remember you make your biggest gains on the purchase not the sale.

[GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73]

May 18, 2013 - 1:08 am

I am personally doing this right now in QLD which is a very simple process up here. Which state are you in?

[GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73]

May 18, 2013 - 1:05 am

A good buyers agent is worth their weight in gold if used correctly.

[GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73]

March 6, 2013 - 8:01 am

Toowoomba is a great place to invest into for two reasons 1. its in Brisbane and 2. its location to the Surat Basin and what is going on throughout that region. We have had clients achieve fantastic returns in both Toowoomba and the Surat basin for a number of years now and it is still priced very well even after there has been growth already.

[GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73]

August 30, 2011 - 9:31 am

Renoah04 wrote:

Can someone with an IP in QLD let us know what are fair current Property Management/Letting Fees? Being new to investing in this region we do not want to get ripped off. Happy to pay fair value for a good service of course but they are so much higher than down here in VIC. Thank you!

Hi Renoah04,

The prices vary greatly depending where your property is at. For example the lowers we have experienced is 6% + GST including all the fees in larger towns and up too 10% plus GST in some of the mining towns out west. You can always negotiate the rate down as they need your business just as much as you need them.

Hope this helps

[GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73]

August 19, 2011 - 8:36 am

A very good statement sent to me today about what is going on around the world!

"The only person who can assure you of health, wealth and happiness is – yourself! Altitude is determined by attitude. If you choose to listen to, take on and acknowledge all the negative stories and events that are thrown at you every day, then what will your waking attitude and outlook be – negative, of course."

Follow what's positive now and reap the rewards even if it is only for a short period of time – 50% of something is better than 100% of nothing…

[GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73]

August 19, 2011 - 8:20 am

Absolutely it is as long as you have in intention of renting the property out for investment!

[GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73]

August 16, 2011 - 9:53 am

Global Group
345 Ann St Brisbane
07 3236 9750 speak to Barry Jakeman

They do project management, construction management & build, they can also look at new intuitive ways that you can save a lot of money on your development.

[GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73]

August 1, 2011 - 8:19 am

Shoooshoo,

The talk of dodgy builders in Chinchilla has been raised by one group in particular (i will not name names) only to make them look better in certain estates throughout the town. We are in contact and deal with 90% of the builders locally and they are all good people, this rubbish about them being dodgy is utter nonsense as they all have the same building standards and council requirements to adhere too.

If you want to find out more or have any questions around this please don't hesitate to comment.

Josh, sorry to hijack your thread but this needs to be cleared up. Great thread!

[GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73]

May 18, 2011 - 11:46 am

It can be quickly if you know your figures back the front. From building prices, project managers fees, council lodgement fees, time it will take to go through council, pre sales period, land tax, rates, building time frames, finance fees, broker fees, interest over the period, gross sales etc etc etc. The only stumbling block will be council contributions but if you allow 22k – 25k that usually covers most councils.

As said above hard research and time is your best tool!

[GiumelliGroupMember@giumelligroupJoin Date: 2010Post Count: 73]

May 17, 2011 - 11:39 pm

Hi Matt, please see below for responses.

Trent – Thanks mate ill try to stay positive!
Do you mean move far away from CBA will all my finances? I have multiple business accounts/SMSF term deposits, Loans (personal and mortgage) Credit cards ect all with CBA! Should i cut all dealings with them? I DID AND IT WAS THE BEST THING I EVER DID, HOWEVER I DON'T KNOW YOUR COMPLETE SITUATION SO YOU MAY HAVE TO DO IT IN STAGES AND LEAVE SOMETHINGS WITH THEM FOR THE TIME BEING!
 
My CBA business manager called me today and advised me my only choice to separate my personal and business debts was to refinance into a business loan and use my person residential IP’s as security!! I’m guessing this is the cross collateralization you where talking about? THAT'S HOW IT ALL BEGINS JUST TIGHTENING THE NOOSE ON CLIENTS! YOU NEED SOME PROFESSIONAL HELP VIA A GOOD ACCOUNTANT, THEY WILL STEER YOU IN THE RIGHT DIRECTION.

I’m glad things are going well for you and hopefully i can get in contact and hear some of your stories and adapt them to my situation or help motivate me to continue with my original goals! I really need direction and advice i can trust, currently i find it hard to believe or trust anything anyone is telling me regarding money   AS PREVIOUSLY STATED MORE THAN HAPPY TO HAVE A CHAT WHEN YOUR FREE