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Interesting.. and good perspective to have. I know there are some big educational precincts planned around the country and some uni's spending big pesos on upgrading or installing new accommodation blocks..I know about these ones first hand so to speak. One was funded privately which I found interesting..big bucks too. Another one going on is looking at the $60Mill mark for construction, so there must be someone seeing something out there…
Personally I wouldn't own them either. but thats purely a personal thing.
Whats the reasoning? Is it banks or does this now flow on to super funds/equity investment groups etc as well…..I'm wondering if that then flows on into construction funding for uni accomm also.
Hi Banker, I hope this doesn't breach advertising guidelines, apologies to Steve et al if it does…
Responsible Living Corporation. It's a new group, working with affordable and sustainable housing solutions (including University Accomm solutions) right through to high end residential design architecture and construction project management.
Our primary product(s) are the Smarter Small Home and some associated products by the same designer. Our vision is very much to be able to provide affordable housing solutions to people ranging from the single buyer through to the developer willing to put together projects of this nature. Its a paradigm shift as the primary product only requires 300m/2 of land, so you're reducing land cost(s) (hopefully depending on Councils) and still having a back yard. Rapid construction times also (max 6 weeks inclement weather not withstanding) so construction risks are reduced as are holding costs in amongts other things like building waste.
We have alliance partners providing environmental services including carbon assessments through to CPTED, Security and Risk Assessment specialists, two broking firms (one recognisable brand and one family business both in Brisbane), and we're working with another group who provides 24/7 handyman/insurance/legal and other 'handy' services. We're also looking into project marketing via a few of our alliance/buyers groups and partners which my business partner operates with.
Offices in Sydney and Brisbane so far, very excited about the prospects at this stage of the game.
If anyone would like to know more, please don't hesitate to get in touch. [email protected]
Cheers,
Matt.It depends on the company, the people involved, the market, the region and so on. My little group offers a number of services via alliance partners, but we always have more than one entity offering the same service, so for example we have two broking firms, two environmental consultants, and so on.
As for commissions, referrals, spotters fees etc, welcome to the world of business and marketing. If you think ANYONE in business isn't open to, or doing this kind of thing, which is quite legitimate and a way for businesses to increase their opportunities and get more business, then you're plain kidding yourself. Is it wrong? Ask yourself, is marketing your business any legal way possible wrong. If you owned your own, would you not want to form as many relationships, as many possibilities for income, as you could? The reality of it is that financial incentives exist and they will continue to exist, no matter what we think or do or say. Why else are we in business if not for financial incentives? May not be the politically correct view, personally who cares if it's PC or not, its real and its honest. You can either chose to deal with it, or not.
Sure, some take it too far, greed often destroys good business practice and ethics. I don't dispute that one bit, just take a look at the 'educational seminar' circuit.
As with anything, there are two sides to the coin, and you should always, ALWAYS do your own research first. Then once you're satisfied you can talk the talk, one of these groups may be just right for you because you 'should' know what you want and go and ask for it. Everything is negotiable to a point. Just be aware, if you go in asking for everything and giving nothing, why would someone want to do business with you?
Best of luck in your decisions.
Matt.
Sasha, not an opinionated thread, relating real experiences. From what I understand from the emails I keep getting from people, nothing has changed at all.
Only my opinion, but you'd be better keeping your money in your pocket and using the forums.
Good luck with whatever you choose.
Nicely done Michael
Will2Win –
Send me an email and I can get an idea of where and what you're looking at, and can provide further details on estimated costings etc. It can vary slightly depending on the region etc. We've found the further up the coast you go, the more expensive things get, including materials. In some cases we're finding it cheaper to ship from Brisbane rather than rely on for example Mackays builders and pricing.Any pricing essentially takes it up to handover. I can list inclusions and exclusions in an email to you.
We have builders all over who can do it. It's not at the DIY stage just yet but we're working on a flat pack version as well.
Cheers,
Matt.There's another option here in SE Qld; check out http://www.smartersmallhome.com.au
If you want to know more, get in touch with me at [email protected]
There are 2,3 and 4 bed versions, and can be constructed in 6 weeks, less if you use the modular but for now we're pleased with the built-in-situ version. Can be also supplied with a furniture package.
We can supply anywhwere in Australia.
Cheers
Matt.Thanks Banker, I'll look into that further.. appreciate your response.
Do some searches in these forums. There's plenty of feedback on Massland and Mark Rolton out there for you to make your mind up on.
Thanks D – i'm considering all options at this moment, but my priority is getting to a point where I can borrow, and purchase. That's the immediate priority for me. I do have solicitors, one of whom is also a finance broker. Might give that a go..
If any brokers or bankers have advice on that aspect, I'd love to hear it.
Hi Terry
Yes it was me, and I"ve put in that request. If they don't have an answer to me by COB tomorrow I'll go to the Ombudsman. I did try and get it in writing but they deferred me to some clause in a letter they'd sent me, which didn't answer my query at all, and when I re-requested it they refused to put anything in writing.My broker has informed me that if we do go via another LMI they'll see the enquiry by Genworth and apparently we still have to explain the entire situation, which, puts me back to square one…..
Matt.
DA = Development Approval
BA = Building Approval
MCU = Material Change of Use
RCL (?) = Reconfiguration of Lot/subdivisionYou're correct if you committed to the property and then Council came back and said no. The way to do it would be to have settlement subject to council approval, as per their advertisement, or reduce the price to remove the 'value add' of the 'potential development possibilities' etc. You could put down a refundable deposit initially with settlement conditions STCA and DA etc.
If they're trying to sell the property with that potential for DA etc, then they'll have to wear the fact that a developer is going to want to know he or she can do what they want with it before financially committing to it. You'd probably find banks wouldn't fund on that kind of val without that council approval either, or at very least it'd be a question they'll ask..
As JacM said, prior to auction, do your research, ask Council to look at it adn see if there are objections etc. If not, then by all means see what you can negotiate for settlement terms. Its no guarantee as Councils change their minds like we change PMs.. but at least its an indication. Nothing is guaranteed till you got that piece of paper in your hand.
As for time frames, depends on the council and area, whether its one of thos risksmart applications that take 90 days or another regional council that takes 8 months. Another question to ask when you go through town planning.
Good luck with it.
Matt.
No rule of thumb here.. its whatever you can negotiate with your folks. work out your profit margins after expenses, holding costs, marketing costs, interest and so on, and then see what you're prepared to give up.
Good start W4L. I'd also be going to the library and find as many books as you can. They'll tell you just as much as any seminar would. And it won't cost you $5K plus. Internet, Library, Forums, and the site W4L suggested above, before you even consider putting your hand in your pocket, would be my humble advice.
Hi Bob,
Just my opinions but some answers below:
Specifically, the questions i have are:
– Does the land have to be subdivided before an option can be signed on it? I WOULD HAVE THOUGHT S YOU AGREE THAT THE SUBDIVISION/RECONFIGURATION OF A LOT WAS PART OF THE OPTION AGREEMENT. DEPENDS ON STATE LAW, TALK TO A SOLICITOR PRIOR.
– If yes, would i need another legal agreement with the land owner (e.g. a letter of intent) to ensure the owner didn't back out of it once the sub-division had gone through (and before the option was signed?) THAT'D BE SOMETHING YOU'D PUT INTO THE OPTION AGREEMENT, AS IN A CALL AND PUT, OR CALL ONLY SO YOU COULD CALL THEM ON IT BUT THEY CAN'T PUT IT TO YOU SO TO SPEAK. IT'D BE ONE OF PROBABLY MANY CONDITIONS AND CLAUSES.
– If no, how do you structure an option for a deal like this? FIND A GOOD SOLICITOR WHO DEALS IN PROPERTY, NOT YOUR AVERAGE JOE BUT SOMEONE WHO KNOWS THIS STUFF WELL. THEY CAN BE COMPLEX DOCUMENTS IF NOT PROPERLY STRUCTURED. AN EXAMPLE MAY BE 18 MONTH CALL OPTION TO PURCHASE X SQ METERS ON SUCH AND SUCH A DATE FOR SUCH AND SUCH A PRICE, WITH THE CONDITIONS OF OPTION SETTLEMENT BEING…..WHATEVER IT IS YOU WANT TO PUT IN.
– Are there any particular pitfalls i need to be aware of? NOT HAVING ENOUGH TIME FOR A DA, NOT BEING ABLE TO FIND AN END BUYER, NOT BEING ABLE TO FINANCE THE PURCHASE AND BUILD, ENVIRONMENTAL FACTORS, MARKET FACTORS, VENDORS WANTINT BIG NON REFUNDABLE DEPOSITS, NOT HAVING AN OPTION FEE….THE LIST GOES ON..not sure if that helps or not, but I hope so!
Cheers
MattNot sure mate. One way would be to talk to an agent familiar with auctions. Typically in a resi deal there's no price disclosed other than a 'reserve' price which the vendor gives the agent, that then dictates when the property is 'on the market' as far as I know.. so you may well be ok in an auction scenario as all you'd need to disclose at the beginning is really that its an option for auction and the length of the time remaining the option. Price you may find might be something that you're ok not to disclose or withold until contract signing etc.
I know some agents have options for sale, and they list them as "option for sale, assignment fee $xyz." nothing else is disclosed..Of course I could be wrong!
Good info Michael……. like I always say… do your Due Dilligence!!
Hi Keiko
I guess theoretically you could auction an option, although i've not heard of it, but that doesnt mean it hasn't happened… Its' only my guess but I would have thought that at auction at some point the buyer would have to know the strike price and option price and the difference. It'd be hard to auction it off at your price, then at signing say, ok well you really just have to give me X, then give the vendor Y in however many months/years… I would have thought youd' have to disclose that at some point regardless.This is all why tryin to onsell options without a DA or similar value add is not as easy as some like to suggest, especially in a quick turn around situation..selling sizzle without sausage is how one agent put it to me..buyers, and financiers, are a lot more aware of options and the processes etc than they were a few years back..
Probably doesn't help you any but good luck with whatever you decide.
