Pair gain- the bane of many dial up users. Lets say everyone in the street gets 56k dial up. Then, a few new subdivisions by Greg F and Co go in. Obviously, telstra must pipe some more telecommunications equiptment in. They can do it properly, or cheaply. Guess which way a company making billions of dollars a year does it? Cheaply. I dont know the ins and outs, but they put pair gains on the line, which means everyone may only get 33k, or 28k, etc. Happened to me, overnight, went from 56k to 28k. Absolute bastards those telstrawankers.
Regarding mezz lenders. Say a bank will lend 70% to a project, then you need to have/raise 30%. A mezzanine lender tops up the equity, allowing the deal to go ahead easier. I understand that the going rate is if you put up all of the 30%, then you receive half of the profits, but can obviously be negotiated. The yourproject site has a good (but not brilliant) section on finance.
Go through all the posts in the finance section, paying particular notice to the comments made by the brilliant and knowledgable Michael R.
Chris battens site seems to say to get a hybrid disc. trust, and get all the prop in a unit trust. Havent bought his papers (yet). He also seems to say that if you set up the correct structure to start with, you can avoid stamp duty and gst on things you dont sell. (In different structures you may have to pay gst and tax, even if it is NOT sold!) I would not proceed without this info!
Regarding voting rites, should’t it go on the amount of cash that others are putting in?
looks like we opened up a can of worms!! we could almost publish a book from all this info. awsome.
Seano
What a coincidence….I reckon Greg should publish a book…not funny huh Greg.
Greg it all sound too good to be true…I’m superstitious…if you pre predict an outcome by either speaking about it or telling someone about it, it quite often doesn;t come true ( like an agent counting their commission on a sale…usually kills the sale )
Hope this works out for youCheers
KPOriginally posted by wrappack:Pair gain- the bane of many dial up users. Lets say everyone in the street gets 56k dial up. Then, a few new subdivisions by Greg F and Co go in. Obviously, telstra must pipe some more telecommunications equiptment in. They can do it properly, or cheaply. Guess which way a company making billions of dollars a year does it? Cheaply. I dont know the ins and outs, but they put pair gains on the line, which means everyone may only get 33k, or 28k, etc. Happened to me, overnight, went from 56k to 28k. Absolute bastards those telstrawankers.
It’s related to available copper line in the area. If there are actually no phone lines available in the area, the only way to give people a service is to install a pair gain.
It’s a result of old technology I guess – until optic fibre cable is everywhere, pair gains are a fact of life.
28k is nothing to bitch about on dial-up – try living in an apartment building, couldn’t get a single page to load.
I’ve got some rough indications on the costs of subdividing, in my area.
Roads $30/m2
Kerbing + Channelling $35/metre
Water $70/metre
Storm Water $2000/block
Electricity $800/block
Sewerage $40/metre
PLUS Council Fees + Charges + Contributions, Surveyers, Engineers etc. etc.They’re greast figures Investron,
I heard a rumour Greg got his subdivision…..
KP
hope it goes well for you
Remeber the name, you WILL see and hear it for years to come !
Originally posted by investron:
I’ve got some rough indications on the costs of subdividing, in my area.
Roads $30/m2
Kerbing + Channelling $35/metre
Water $70/metre
Storm Water $2000/block
Electricity $800/block
Sewerage $40/metre
PLUS Council Fees + Charges + Contributions, Surveyers, Engineers etc. etc.Hi Investron
These figures look great, and complement the “ballpark figure” my accountant (a very experienced property investor who specialises in suburban subdivisions in major cities) told me:
“My ballpark figure is $40,000 per block.”His ballpark figure doesn’t help me much in a Rural Residential zoning, however, when there’s no need for kerb and guttering, nor underground power/phone lines, nor street lights (certainly not those sexy little green federation style ones).
Investron, are your figures for suburban subdivisions? If so, do you have any indication re the cost of a 6.5 metre wide bitumin road with gravel flanges etc in a rural precinct?
Whether you can help out here or not, your figures are very helpful, so thanks muchly.
Cheers
Greg FThe developers here say it costs them around $ 22,000 per house allotment, so for rural it would be cheaper.
Don’t forget the interest on borrowings, untill you have sold enough blocks, and then taxes.
If any of you are interested in subdividing 75 acres in Kilmore, Victoria, please get in contact with me. I am not the owner or their agent, just got the information through a friend.
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