Forum Replies Created
Hakbm,
I symphathise with you entirely. I never have these problems with other builders.JTW
Bob, Thats why I am investing in the Brisbane western Corridor. An extra 250,000 people , 96,000 jobs and about 80billion in infrastructure in this area over the next 15-20 years. Yet prices down in the SEQ corner still cheap by comparision with just about everywhere else. I am purchasing land , splitting or developing, building and selling enough to make the rentals CF positive. Hard work but big results. I use various project builders and they are all about this price. You can't beat project builders on price and value if they do it right. I have developed good relationships with sales staff and supervisors with a couple of project builders. But if I used Tamawood/Dixon I think I would go broke. They don't produce the product at time/cost/value that I need. That is why my opinion is that shab008 should think carefully before committing. He may find that in his circumstances they suit. But in all good concience I can't recommend them in any way.
Bob,
The guys I spoke to were good carpenters that ran there own business and subcontracted to 2 project builder of whom the spoke of highly. Building costs are $665 per M2 + carpet Tiles in living areas + light fittings + outside area concrete + landscape. I mentioned these add ons so you can compare apples with apples. The house is W41 (N3 ?) brick and colourbond with 2.7m ceilings, 3.4 metre raised entry and European stainless steel kitchen appliances. It also has remotes for the panel lift door and flyscreens. ( Contract price $236,879 / 356m2 =$665.39 ) I think the Tamawood/Dixon reputation extends beyond Western Brisbane. But if it is OK in your area that is good. Project builders are a funny thing, if you find one you can work with and they have nice designs and finishs you can't beat them for price and value. If they are bad , you might as well find the dearest local builder that has the best reputation as he will give you the better value in comparision.Bob,
Western area of Brisbane. The project was a company built project via a supervisor, as per any other project builder. I understand they also have builder franchise model and some of these people may be good. But also understand that my experience has been extremely poor. Add to this my circle of business friends etc who have the same opinion of this builder after similiar experiences, I think there is a consistent negative report that will continue with good reason. I spoke to the carpenter doing the frame on the 2 houses I have under construction (With another project builder). He assures me that the company culture is still the same, poor workmanship resulting from poor pay, delays in getting pay, no supervision and total disorganisation, I suppose that is why they have to advertise so heavily to get tradesmen. My experience is recent enough to be fair comment, my reliable sources inform me that they are still not a company to recommend on any level. My advice, don't use them.Bob,
I have had about 18 project homes built with various builders over the years, in fact I have another 2 under construction right now with a well known project builder. I have only ever had one project builder i disputed , Tamawood. They were no where near good enough. I won't use them again. I will use other project builders for investment homes etc (in fact some I have used more than once). I am in the process of ordering another 6 houses to be constructed, But i won't consider one specific building company because they were difficult to deal with, take too long, and in the end I had to spend around about 7% of the original contract price bringing it back up to a standard. Being an investor I believe that it took a disproporionate amount of my time to supervise and fight with the builder. i haven't had this problem with any other builders,ever. You seem to be taking offense at the suggestion that a builder may be less than perfect. I agree that some customers are too difficult to deal with, however this has nothing to do with my dislike of Tamawood/Dixon. I am glad that other people are now getting a good product from them, but this is certainly not my experience. In fact it is difficult to find a subcontractor or purchaser that has a good word for them. I could detail the full drama of building with this particular company, however shab008 will make his own decision based on feedback from a number of sources. My advice, don't use them. JTWI rarely bother to comment on these posts, but Scamp you are negative, rude and unhelpful. Throughout my investing career I came across many like you and luckily I had a go and went ahead with my plans. The result for me has been very rewarding.
Zebulan has not indicated he is any difficulty, he is merely seeking different opinions from other investors as to his investing options. You speak of the Australian market as one commodity, obviously this is a very limited view from a simplistic stand point.
Scamp I think your comments are unhelpful and unnecarily rude. Even if Zebulan had got in himself in hot water (Which it appears he has not) you post is not offering anything that could be used constructively. Nor does he deserve you rudeness.The investment environment has changed and will continue to change. Scamp thinks that the world as we know it will end. I hope not, as nothing can be done to avoid the devastation that such a scenario would reap. I will continue to monitor the fundementals of the economy and the property market segement I choose to invest in. I can see a bright future, remember it is always darkest before the dawn.
Zebulan, if you can afford to keep going, keep going and fight on. Review your strategy and adapt to the investing evironment. I suggest you start a detailed planning process as to where you want to go from here. I am not talking about a wish list approach many think of as planning, but a process that involves a situational assessment, an appreciation process and finally a written detailed plan that has a definite goal and strategy. I suspect that is what you are commencing by asking for a peer review of you current situation and seeking help advice in various option. Best of luck and don't give up or give in to the naysayers.
JTW
Adam,
Depending on the degree of difficulty, planning scheme requirements Min block size, SEQ Regional plan implications etc the costs could be 20K-30K to who knows how much. I have completed a similiar project recently and found the costs can in at about 75K each block. Costs covered stamp duty , solicitors, engineers, construction costs, energex, ……… on and on. Do a financial analysis carefully before you start. Get a good town planner. (I use Goodwin Midson & Partners and they have an office at Buderim I think).Have a look at 'Property Divas" website. It is run by a forumite at Ipswich andisone on thebest summaries ofthe development process I have seen so far. Also the Lady that runs "Property Divas" is very helpful.
Hope this helps.
JTWI have already started sand bagging my position for any economic bombshells.
Here is an interesting thought.
Let's say you had a really bad tennants. They weren't paying thier debts and are wrecking the house. They run up a debt that is sending you broke. In fact you discuss passing this huge debt on to your kids to pay off it is so big. You finally evict them.
Put in a really good tennants that looked after the place, paid on time, and had not caused you a problem in 11 years.
You get ahead, and pay off the mortgage you once though would drown you. Golden days instead. But you get bored with your new found economic prosperity. What could go wrong you say? So you decide to kick them out and bring back the Tennants from Hell. (After all they had nice new Kevin 07 T- shirts now).
Hmmmm. Quite an interesting choice.Amanda,
I can symphathise with you on the frustration levels involved in developing. I have just completed a small sub division (3 blocks) and I have learnt a heap. In balance the rewards have been exceptionally good. I am now undertaking a 100 lot subdivsion and I am applying my experience from last time so I hope the process will be easier. I found it is not the local council that is the problem. I sincerely believe it is the tortured process under the Intergrated Planning Act (Qld) and the SEQ regional plan that are making the council staff hamstrung. I note that nearly all states have similiar legislation and the same problems around Australia with gaining council approval. The current housing affordability crisis in large part can be sheeted home to the various State governments around OZ, that seem to be clones when it comes to development policy. In QLD the council amalgamation process will add about 10-15% to the cost of a block in my opinion. I base this on extended holding costs associated with getting approval, increased council fees /charges /levies and the log jam it will create in getting anything done. I will also factor in a premium on land dev costs for developer frustration compensation. Anyway, I had to let go of some steam and there you have it. Let us all know when you have the sealed and registered plans back. Congrats on having a go.
JTWNicoleK,
There are still some of areas where you can buy for $250K but probably more the outer areas of Brisbane. One that immediately comes to mind is the Ipswich area which is undergoing mega growth. Another forumite AmandaBS knows this area pretty well and has a good website 'property divas'. Other than that I don't of many areas off hand , that you can buy into for $250k and still get growth and returns.JTW
BDM,
Amazing how a public holiday long weekend can adversely affect plumbing. Guess what? Yesterday, I had 2 seperate plumbing problems with my investments. Phone rang at 9.30 (tennant A) and 11.00 am. (tennant
Total bill ? 550 +Gst. I know how you feel. The trials and tribulations of a landlord.JTW
Crashy, Each area has its own benifits and draw backs. As with reno's, subdivision is about creating a saleable product in the end. There is a process to follow and tricks of the trade you learn along the way like doing renos.
I am just finishing a small subdivision project in QLD and I must say that AmandaBS should be commended on that great post. The actual process can be very frustrating , but in the end very rewarding. I am not just refering to the monetary rewards but the satisfaction of finding something in the rough and polishing it to a saleable item that people fall over themselves to buy.
My personal experience has been to become very familiar with my local area , the local authority and the planning process. Over the last 2 years I have developed great contacts in council and professional services that will greatly reduce the 'friction' and delays in any future process. Because each council has it's own town plan and regulations, i intend sticking to the same area to capitalise on the knowledge and contacts I have made. How much will I make from my project, in excess of $500K.
Will I do it again? if I find another gem in the rough, you bet I will. Is it hardslog ? not like renos (which I don't do anymore) it is more frustrating and requires confidence. Is it a step up from renos? No, it is just a different product that you are getting ready for a purchaser. It will come down to personal preferences, but also you own abilities and character.JTW
I agree with Queenslander 07's comments. I wasn't aware of the water from Tieri being piped in, I can't think of any major water resource out that way? The idea of piping from Fairburn Dam (Emerald) had been floated for many years.
In my humble opinion CF+ deals are not what they are cracked up to be IF you don't get real reliable capital gains. The investment of a life time can become the biggest Albatros around you neck. Bank are still going to see the debt, The capital gain prospects for Capella aren't great so the bank is unlikely to lend much against them in percentage terms(LVR). If you get higher rent returns, usually there is a reason like low capital gain prospects. I always go for capital growth in my assets, rents are 'nickel & dime' in comparision. Sometimes you can buy a property in a major capital or regional centres with great capital growth potential, reasonable rent returns. You may have to put in a small sum to subsidize the holding costs (tax deductable anyway) but in a couple of years you will see increased rents kick in, but most importantly the capital gain will have moved along nicely.
Worst case scenario : Imagine in 5 years the economy hit a major pothole, It becomes hard to rent out the house at Capella because they have mothballed a mine (Happens!) and the only other industry farming is hit by a drought. You lose your job orhave reduced income. If you have to sell in Capella it could be a real small pool of buyers. The CF+ can suddenly look like a dead ender and I bet you wished you had chosen Brisbane for example, still underpinned by population growth. Think it through. Mining towns and similar can look exotic and at times become flavour of the month.
Plain vanilla is my favourite investment flavour. Major cities, residential, high land content.JTW
Raddles,
Glad you got value from it. I don't think I am 'ignorant' , perhaps cautious, skeptical and tight with my money
I was trying to give renabelz another view and other options.JTW
Having lived in Capella many years ago, I would offer the following for consideration. Yes it is actually a nice little town and i have fond memories of it, but I wouldn't invest in it. Water supply has always been a problem. Several booms have come and gone with rents at sky high prices for rent and then years of low rents and stagnation. Most of the boom times are related to the construction phase of the mine , not the operation of the mine. Most miners (from Gregory and Gordonstone) prefered to live in Emerald which is about 35 min drive to Gregory. Check out Emeralds skyhigh prices. Peak Downs Shire Council has done an unbelievably good job promoting the town and building excellent facilities (eg pool is fantastic and` was used by an overseas country to train athletes prior to Sydney Olympic). I would also wait to see the outcome of the forced council amalgamations by Beattie. If that goes ahead, Capella and many towns like it may wither on the vine. If you are in Capella, speak to the local newsagent (Harold) and a few locals at the bowls club. They might have some local gosip on future developments. Gordonstone mine was talked about for at least 20 years from drilling investigation to commencement. The only thing under the ground out there is coal and that is getting unpopular in the current greenhouse debate/panic/hysteria.
Raddles,
I am glad that you got value from the course. I still think that reading books and this forum/somersoft are necessary to begin with. Personally I would take the 4K to get good personalised legal and accounting advice directly from a professional accountant and lawyer. Before this I would still need to have base knowledge, obtained from books, short courses like Steve's or Micheal Yardleys that cost a fraction of the price. The checklists etc are readily available from other forumites and books.
Dunno about this course your considering, I am with L.A. Aussieon this, $200 in books and bounce ideas off the greater wealth of knowledge on this site. $4K spent over time, wisely would go a long, long way. It would also give you the time to soak it up gradually and form your own opinions, develop your own investment preferences and identify your strengths and weaknessess. I personally would not blow it on one course.
JTWHi Foundation,
I'd forgotten about this thread too. I am still a 'slow and steady wins the race' type investor . I think that the sustained real estate prices and the improving outlook is still related to affordability. We have very low unemployment, lower taxes, higher rent yields. I think this will support prices and mildly improve them. An earlier post mentioned migration inflows- This will mean continued demand. 2 years ago when this tread started , things looked more uncertain
Overall I am reasonably confident about the outlook but not expecting anything spectacular in capital gains. What do other forumits think??jtw
Renabelz,
4K seems a lot of money to pony up with for course. Of course the DVD will look fantastic, would you expect otherwise?
Before ploughing in heaps for a course that may have a narrow focus on a few methods, I recommend READING WIDELY.
Steve McKnights books are good, subscribe to Micheal Yardleys news letter, read Rich Dad Poor Dad series and I am sure there are many more books other forumites will recommend. If you undertake a course before you establish a general grounding of property investing it will go straight over your head and money straight out your wallet.I am assuming you are a novice in this area mainly because of your recent membership on this site. If you are a seasoned investor I think that most of these 'programs' ' boot camps' etc are just rehashing what is in the books. I attended one of Steve McKnights courses and really only learnt that I already knew most of it. If you are a starter, go to a one day course like Steve's for the $700 range and you will get value. I was recently told (by another forumite) that Micheal Yardley holds a 1 day course and it was the best thing she had attended, so there you go……
JTW
Have you looked at Yatala area in Qld ? It is midway between Brisbane & Goldcoast, some major developments there. In terms of capital growth & security I can't think of better.
Golderneye,
A couple of things. Firstly I would make serious enquiry about getting your trade Qualifications transfered. We have family friends who moved over from the UK and settled at Forest Lake in QLD. He had his qualifications transfered after some minor testing on the plumbing code and working with a licensed contractor for a year. Look at other employment options, the only people unemployed at the moment are those that choose to be. Check out the Commonwealth Govt employment services, they have free support in job placement for people with disabilities (Such as hearing impairment)Secondly, get settled in over here and really work out what you want from the lifestyle change you have embarked on. Sydney may not be the place for you in the long term. There are so many beautiful places in Australia to check out.
It might be important to securely 'Park your money' until you buy a PPOR. If you take your time to get to know the market you will do better in the long run. I don't foresee any massive increases in the market in the next 6 -12 months, just an upturn in investors. Increase you knowledge in the meantime. Welcome to Australia
JTW
Total bill ? 550 +Gst. I know how you feel. The trials and tribulations of a landlord.
