Hello,
I hear that many of the large developers are not making their required 10% ROI on sites, that due to market conditions its currnetly a little lower for resi property, I would intrested to hear what the ROI is currently for the large, medium and small developers in this forum and locations.
it would be a brave dveloper that took on a devy with a 10% ROI. we are talking gross profit margin here right?
The only guys that I know that can do this are builders themselves, in which case they jsut consider the building and dev margin one and the same. these are the guys to buy good value OTP property from!
oh also – you’d find it tough to find a bank to lend on a project as low as 10% return… maybe they are lazy super funds or somehting.
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
what sort or rois are poeple getting on developments?
well 20% gross is the bog standard which is usually 100% return on equity. but you can get good deals that are 100, 200% which would be a large return on equity – all depends how much you put in i.e. gearing and how quick you can turn it around. and if you put nothing in and make $1 what is your return on equity then?
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
hi pipelinebuilder
not sure how to answer your post but will give it a go.
mule investor usually 10% return,
(no liability risk) money in money out in 12 months.
member, equity in, with attached to the development ie risk as they are part of the trust usually between 20 and 30% profit depending on the project.
major investor usually share holder with me return on equity above 60% and holds at the end.
I dont get involved unless its min 30% return.
The group I’m involved in currently giving mules at 30k a 10% return per annum.
thats no exposure to liabilty , ongoing resi development.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
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