[kateej03Participant@kateej03Join Date: 2011Post Count: 112]

May 27, 2014 - 3:22 pm

Hi Everyone,
Well last week I quit my day job to invest full time!! My partner and I have settled on a few house a couple of weeks ago (we are renovating and subdividing for profit) and have just got the new one that we keep us busy over the next few months!

Kate :)

[kateej03Participant@kateej03Join Date: 2011Post Count: 112]

May 26, 2014 - 2:51 pm

Hi Phorsha,

I have done 2 subdivisions in the past year one with one block out the back and the other with two. Our costs were a lot higher because we needed a carport and also needed to upgrade the whole façade as it is survey strata. As Kent said it also is subject to the conditions of the subdivision.
The biggest cost we have incurred if the council deciding to add a condition that we needed to pay a bond for the common property driveway of $100/m2 that we will get back when the people we have sold to decide to build – who knows when that could be. One was $20k and one was $10k. These were both unforeseen costs and you should include a contingency in your numbers as you never know what the council wants. Another one I have seen is the council has asked for contributions for open space or even to upgrades roads and/or street lighting so it can be quite costly.
Might be a good idea to speak to your council to start with and ask what conditions they might ask for.

Thanks,
Kate

[kateej03Participant@kateej03Join Date: 2011Post Count: 112]

May 8, 2014 - 5:34 pm

ten_burner – having not heard of a hick town before and doing a google search the first thing that came up was “a person who lives in the country, regarded as being unintelligent or provincial”, perhaps it is common for the people you know to see it as someone from a regional town, however I would be careful what ‘slang’ you use, especially if there are other meanings to the word.

Also adding on to the risks you pointed out, I would not invest in a property without knowing these risks. The property I own is purely for positive cashflow, I do not expect any capital growth and I do not expect the rent to increase but that is not why I bought it.

Without this property I would have not been able to buy the last 3 properties I have purchased, all of which have been in capital growth areas.

[kateej03Participant@kateej03Join Date: 2011Post Count: 112]

May 5, 2014 - 10:23 am

ten_burner – I would really like to know what you mean by ‘hick’ towns. From a quick google search of ‘hick’ I came across
“a person who lives in the country, regarded as being unintelligent or provincial”

I find this extremely offensive if this is what you are implying – I myself come from a town of less than 500 people and do not believe I am either of these things. I can also tell you that 99% that live in the country actually pay their rent on time and are excellent tenants and I wouldn’t hesitate to invest in such towns – from a small populated town I am receiving an 11% return and they are the best tenants I have had.

[kateej03Participant@kateej03Join Date: 2011Post Count: 112]

March 31, 2014 - 2:52 am

Hi Phorsa,

Our strategy is to renovation and/or subdivide and sell so we are looking only at houses at this stage. Once we have enough capital we will be able to buy properties with good rents and capital growth outright and live of the rent (that's the plan anyway), but right now we are focused on building the capital base.

Thanks,

Kate

[kateej03Participant@kateej03Join Date: 2011Post Count: 112]

March 26, 2014 - 6:39 am

The only one I would consider on this list is Maylands – but my strategy is not to wait for long term growth.

[kateej03Participant@kateej03Join Date: 2011Post Count: 112]

March 19, 2014 - 12:12 am

Thanks suavemechanic – appreciate your replies

[kateej03Participant@kateej03Join Date: 2011Post Count: 112]

March 5, 2014 - 12:10 am

Hi Connolly,

Your best option if you have the time is to source the trades separately and buy the materials yourself. For a bathroom that size I wouldn't pay more than $5k (for an IP) and I am in Perth. It is about getting multiple quotes for tiling, plumbing etc and sourcing the tiles etc from cheaper stores that sell the same product for sometimes half the price. The price can also increase if you decide to lay rectified tiles instead of ceramic tiles and the bigger tile you go the more expensive it is.

Thanks,

Kate

[kateej03Participant@kateej03Join Date: 2011Post Count: 112]

February 25, 2014 - 12:04 am

Hi Azazel,

As I said no I have never been to QLD.

Thanks

[kateej03Participant@kateej03Join Date: 2011Post Count: 112]

February 21, 2014 - 1:37 am

Hi Ynchai,

I work for a building company and would like to point out that sometimes there are things that come up outside of the builders control and will be extra costs, this does not mean the builder is trying to rip you off or get more money from you, but they need to cover their costs as well.

The contract should have a clause regarding engineering and soil reports which may result in extra work required.

Also, from experience it is very common to have different site classifications in estates and can even be different from one block to the next.

In this case if you really don't think it is correct you could ask for a new soil report from a different company, however you will take on the risk that if it has the same result you will need to pay for the extra works as well as an extra report. On the other hand it is a possibility it will come back different and you will save money, but that is the risk you take.

Thanks

Kate

[kateej03Participant@kateej03Join Date: 2011Post Count: 112]

February 14, 2014 - 12:16 am

Personally I don't beleive you need to go to Uni or Tafe to become a property developer. I did 3 years of a Town Planning degree and learnt nothing even related to what I am doing now (renos and subdivisions). I learnt the most from my own research and actually taking the plunge and doing them first hand. There will be some courses that will help – like building or project managing, but I don't think it is a must to do them.

[kateej03Participant@kateej03Join Date: 2011Post Count: 112]

February 12, 2014 - 12:11 am

Haha Jamie I didn't mean to imply 30 was old! But for Tom it is more than double his age!

[kateej03Participant@kateej03Join Date: 2011Post Count: 112]

February 11, 2014 - 8:36 am

Hi Tom.

Although I agree with what everyone has said getting educated etc, can I just say make sure you are having fun! Hang out with friends and have fun, don't take life too seriously at this point you are still so young!

I am 23, started at 19 and have bought 6 properties now and I think I'm in a pretty good position in my life. My point is you won't be able to buy until you are 18, so take some time to enjoy life and enjoy being a kid – time goes so quickly and you will be 30 before you know it!

Kate

[kateej03Participant@kateej03Join Date: 2011Post Count: 112]

February 11, 2014 - 12:33 am

Hi Guys,

I was meaning exactly what Terryw has said. I have read this strategy in a number of books and they all mention if it is structured correctly the 'middle man' so to speak won't need to be stamp duty, only the final purchaser. However, it never went into detail as to how this is possible, hence the question.

Thanks,

Kate

[kateej03Participant@kateej03Join Date: 2011Post Count: 112]

February 6, 2014 - 3:58 am

Hi Guys,

My partner and I invest in Perth and focus on subdivisions and renos. Last year we did 2 renos/subdivisions in Bassendean, but now we are looking for the next one Bassendean is not as viable as it was a year ago. Prices have increased too much to make anything worth while and properties are being snapped up in a couple of days.

We have now shifted our focus to areas like Midland, from the numbers I have been doing I think the only way anything is worth while is by doing apartment style developments or townhouses. The zoning is high around the town centre and there is a lot of gentrification going on. Personally I don't see the crime etc has a deterrent – majority of people are looking for affordable houses and these are the areas that appeal. I was shocked though at how much apartments/units are selling for at the moment – off the plan for $300k for a 2×1 and majority are sold.  

Thanks,

Kate

[kateej03Participant@kateej03Join Date: 2011Post Count: 112]

February 4, 2014 - 4:58 am

Hi Mark,

I just need to find our specifically about developing on a block that is already part of a strata title – do you know if his was?

Thanks,

Kate

[kateej03Participant@kateej03Join Date: 2011Post Count: 112]

January 31, 2014 - 5:01 am

Hi Kirsty,

I have used Kevin from Jamie's recommendation and he is very good at was he does.

Thanks,

Kate

[kateej03Participant@kateej03Join Date: 2011Post Count: 112]

January 28, 2014 - 1:59 am

Hi Chongsuai,

I work for a building company in Perth in the contracts department. In the HIA contract there is a section under the schedule of particulars where there is a section for how many days you need to have finance by (usually 30 working days), it is possible if you have not been able to obtain finance because of the lack of titles this could be a way out. Then you can go with the other company and not have to worry about any more price rises etc with Celebration.

Thanks,

Kate

[kateej03Participant@kateej03Join Date: 2011Post Count: 112]

December 9, 2013 - 8:39 am

Hi Cathy,

I use Prak from Harcourts Maylands. He is an investor himself and is really good at what he does, he has sold 3 blocks and a house for us

Thanks,

Kate

[kateej03Participant@kateej03Join Date: 2011Post Count: 112]

October 4, 2013 - 12:13 am

Hi Everyone,

I just wanted to say thanks to all who replied. I have had a bit of a battle with the agent but have been paid out a fee that I am happy with to compensate. The agent has taken responsibility for the mistake and I have learnt many lessons in the process! We now have sold the blocks subject to new titles and looks like we will make a healthy profit.

Again thanks for the replies.

Kate