The above is somewhat correct.

The Australian Securities and Investments Commission [ASIC] stipulates that you do not need a prospectus if you are raising less than $2 million from 20 investors in any one year.

There is also an exemption to the prospectus rule if…[Read more]

As noted, private funds typically incur a higher rate of interest than a bank.

The two most common scenarios when forming a joint venture are 1. offering…[Read more]

The objective is to “control” the land, which does not necessarily mean you “buy” the land.

A conditional contract [or “option”] is typically subject to planning approval, finance, etc. In many cases the option may require no money down – the length of the contract is also…[Read more]

My point being.. it is very rare that legal action transpires from a sunset clause if the provision and agreement are properly drafted in the first instance.

I am not referring to your subdivision, rather the importance of using qualified legal…[Read more]

If you did have an experienced and/or competent lawyer you would likely of had legal grounds to ensure the transaction went as intended – if the developer clearly intervened with the intention of terminating the Agreement.

It is also likely that the developer would have…[Read more]

“Be aware of sunset clauses, particularly if you are buying an apartment.”

Sunset clauses are common and more than often a provision intended to protect both/all parties interests.

“many court cases result from sunset…[Read more]

Most importantly you require the ability to identify opportunities…[Read more]

Not negatively.

“But that’s up to the media/TV to let them know”

A logical statement.

— Michael

If you don’t have a “Plan B” you shouldn’t be undertaking any form of investment.

— Michael

Month to month sales are down in Auckland, Wellington, Queenstown, etc [using New Zealand as an example] but supply is playing an influential role in this equation.

For example, there are not many worthwhile $million plus properties available at…[Read more]

An adjustment in any market, no matter how severe, can result in a profitable outcome for those who are prepared.

— Michael

If you can afford to pay for the land at settlement, and you conducted sufficient due diligence to determine if the land was a viable investment, then it could be “a good idea” .

Otherwise, you may have to forfeit $1000 – a small penalty for a mistake in this business. If this is the end…[Read more]

A certificate of title, issued by the local land titles office, defines the property you have purchased and any encumbrances or mortgages over the property.

Apartments are at times sold off-the-plans “subject to title” when the developer has not had titles…[Read more]

“When I emailed CE to ask how they calculated the measurements they responsed by saying “The apartments/title have been professionally surveyed by a qualified surveyor. The areas are calculated in accordance with the Property Council of Australia method of measurement.”

Contrary to what the…[Read more]

Apartments typically have a land component in the valuation.

Houses can depreciate as much if not more than an apartment.

Apartments in the right location can appreciate at a faster rate than houses in the same vicinity.

— Michael

— Michael

If zoning and/or tax issues need clarified, then this information can be sourced through local authorities.

One of the better publications focusing on property development is:

Real Estate Development: Principles and Process. [Mike…[Read more]

The above statement is correct at times. The preference is often more aligned with “best use” which provides options and can increase capital growth at a faster rate than a typical apartment.

For example, single family…[Read more]

And there are no costs associated with maintaining a single family home.

Do not only account for tangible costs, also take into account the “time” spent maintaining a SFH and property.

In most cases a strata fee is less than the cost to maintain a SFH on an annual basis.

–…[Read more]

This is the second post in as many days where “experts” have been used to qualify a statement which is not quite correct.

One bedroom apartments are not necessarily the way to go, especially in Melbourne at this time.

The fundamentals of real estate investment stem from supply and…[Read more]

Define “experts”?

— Michael

In terms of legal advice, I am located in the United States, and although my company has legal representation in Australia, they are more geared for representing corporations.

What I suggest is contacting one of the more established firms…[Read more]

– This provision should be included in the terms of agreement.

The developer is generally responsible for “faults” resulting from inadequate workmanship, materials, etc, for a defined period, i.e. 12 months after date of settlement.

— Michael

– CE apartments typically define “over-supply”.

In saying this, the investment may meet your objectives, but make sure you conduct detailed due diligence on the locality, similar current and proposed development in close proximity, market/rental trends and sales activity, valuations, CE apartment turnover – if…[Read more]

Inner city apartments are only worth the investment if they offer a competitive advantage, i.e. spacious, attention to detail, exclusivity; and/or there is a clear demand [rental and re-sale] for the product throughout the estimated holding period.

— Michael

— Michael

I recommend contacting a local contractor to discuss the above and the general steps involved in building a 3 bedroom dwelling.

— Michael

– There is nothing under ASIC regulations that prevents discussing shares as a topic in any public forum.

What is restricted is promoting specific shares/stocks/equities or disclosing information that may impact the shares or company.

— Michael

— This is not a recommendation to abide by. I personally have shares/stocks because of the liquidity – easy to cash-out. But I also have other investment vehicles to offset the risk and/or potential downturn in the markets.

Unless you understand the company/industry you are…[Read more]

Development does not necessarily mean the market is on the rise. It can take many months, often a year or more from the date the project was conceived before construction begins.

Development planning often gets to a stage where the…[Read more]

— Michael

However, if you haven’t done so already, you should speak with the local council/planning office, and a qualified lawyer to determine if there are avenues to pursue.

I would have consented to the adjoining subdivision -…[Read more]

In order to acquire property by way of a loan in Europe [or any country] with a foreign entity, the entity must have sufficient assets to secure the loan.

The loan originates in the country where the entity is registered – unless the entity retains sufficient foreign assets.

For example, based on the scenario…[Read more]

To reiterate my earlier point, the fact that your potential partner is a Malaysian alone means very little. In order to reduce your risk, it is advisable to partner with an individual well established in this market, with a successful track record and reputable network.

“How is the property market…[Read more]

Given the risks involved – short or long-term investment strategy, Australia and/or New Zealand should be far more rewarding.

— Michael

The loan originates in the country where the entity is registered – unless the entity retains sufficient foreign assets.

For example, based on the scenario outlined, you would borrow funds…[Read more]

– In some instances the above is correct.

However, if the “developer” has no prior experience/track record, and has not employed a reputable QS and qualified professionals, i.e. architect, project manager and/or building contractor to conduct the development – no…[Read more]

seed = “education” ->

resulted in no money -> ignited drive and determination -> knowledge derived through education translated into viable business concept -> still no money, but committment -> concept attracted experienced and proficient…[Read more]

Furthermore, a property’s yield can be compared with other investment options, i.e. stocks and bonds, a business’s cash flow, term deposits, etc, to determine the most…[Read more]

– correct, 5-7 percent is not generally considered a feasible ROI [return on investment].

3. I’m pretty sure they’re residential, but with a commercial LVR ie 60%

– apartment developments are generally residential; hotel developments are often commercial due to commercial…[Read more]

– The above statement is not necessarily correct.

The foundation of any property’s value is supply and demand. Limited supply of land will increase value, however, properties that do not have a direct land component will also appreciate in value…[Read more]

Being 920 sqm and assuming you have consent to build multiple dwellings by right, you may have sufficient area for three “attached” dwellings.

Alternatively, you would need to subdivide the site for multiple detached dwellings. Which if…[Read more]

Furthermore, there can be a number of costs involved during the preliminary stage – prior to securing…[Read more]

He has partnered with a developer who is successful in his own right, but the foundation of this partnership is questionable from my perspective. In saying this I hope for the sake…[Read more]

The above may be fine in the perfect world, but in reality quite often a contract/option has to be secured before adequate due diligence can be conducted – which appears to be the foundation of this…[Read more]

Terms and conditions of contract cannot be ambiguous.

“the more “subject to” clauses attached to your offer, the less appealing it will be to the vendor”

This is not correct nor the mindset to have. The “number” of terms and conditions is…[Read more]

– The potential for a “crash” has not existed in the most recent downturn/market adjustment.

The best time to invest in any market [within reason] is when capital is limited, i.e. too risky for the mass/less sophisticated investors.

The key to…[Read more]

The group has filed chapter 11 bankruptcy protection which is a reorganization of assets and liabilities. Or in other words, it enables the group to write down most if not all of its debt.

In the United States this is often more a strategic move than indication the company…[Read more]

— Correct.

“Check out his website for the property ventures he’s doing. They are great,”

— The facts and figures behind the projects are what is important.

“and he’s the first to do anything like that in his areas.”

— Incorrect.

“So he may be a big time developer…[Read more]