Hi all,
I've been reading these forums for the last 6 months and they have (YOU have!) played a big part in my property investing education – it really is an excellent resource … and, although I'm familiar with online forums, and do post in various others, this will be my first post here!
My wife and I are about to embark on our first property investment in EOS Property's latest "Armchair Development" at 33 Windsor St, Perth, 6000 (link below).
http://eosproperty.com.au/properties…-north-perth-2
We're very excited about the venture and are impressed with results of our due diligence on the investment so far. We've researched the area and the demands and trends, and run the numbers through various scenarios (best to worst case) and because of the 20% "buffer" in the deal they seem to stack-up!
We're also impressed with the individuals and companies behind the deal:
– Marketing and Investor Coordinator: EOS Property Group
– Development Manager: Bird Property Group
http://birdpropertygroup.com.au/
We plan for this investment to "kick-start" our journey into property investment and have goals to grow a portfolio over the next 12-15 years with this property as the secure base and foundation for this!
Would be interested to hear your thoughts!
Like I said … we're excited!
THINK BIG!
Cheers,
Crido
Hi Crido
Good luck with your development.
Have no experience with these guys but am looking forward to hearing your progress on here.
D
RPI | Certus Legal Group / PRO Town Planners
http://www.certuslegal.com.au
Email Me | Phone MeProperty Lawyer & Town Planner
Interesting program. Are you planning to borrow funds for the initial deposit? If so do you foresee any problems with getting approval from lenders?
Id be interested to hear how long they lock away your equity for after the completion of the project.
Then after that id be interested to hear about how you go about refinancing or using your equity out of the project to 'kick start' your journey if there are multiple finances coming from individuals.
BigCubez wrote:Interesting program. Are you planning to borrow funds for the initial deposit? If so do you foresee any problems with getting approval from lenders?
I'm borrowing some of the initial deposit through a business partner (not through a traditional bank loan), so approval is not an issue.
wilko1 wrote:Id be interested to hear how long they lock away your equity for after the completion of the project.Then after that id be interested to hear about how you go about refinancing or using your equity out of the project to 'kick start' your journey if there are multiple finances coming from individuals.
Hi wilko,
Thanks for your feedback, however could you explain further please?
I'm not sure I follow …
1. Why/how would "they" lock away my equity "after completion of the project"? And who is "they" … the Development Managers or the lending institutions?
2. Refinancing at completion to fund the second part of the investment won't be a problem (my broker doesn't think so anyway!) as I will borrow against the value of the property. If the values are at (or above
) current estimates I may be able to pull equity out of the project at completion for further investment/s, or if values are more conservative, then … I'll wait and I'll hopefully see some capital gains in the years following and be able to draw upon these for further investment/s. 3. Not sure what you mean by, "if there are multiple finances coming from individuals". Could you explain this please?
Cheers,
Crido
The model is fairly straight forward and something we are starting to do in both Melbourne & Brisbane.
Normally done with a standard Unit Trust structure although as Michael has mentioned you are unable to fund the initial deposit on the property itself and have to use collateral security or cash.
The on completion finance is based on the sale price with the initial equity being considered as a deposit.
Definitely a good way to buy with in-built equity and with Brisbane prices set to increase your are getting in at ground level.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi All,
As a Director of Eos I'll answer a couple of the queries.
@wilko1 – as soon as project is finished and strata titles have been issued individuals secure a standard residential loan, repay their share of construction funding, take ownership of their property and manage & own it outright. Equity is therefore 'released' and useable and can be used almost immediately.
@big Cubez – initial funds cannot be secured by the 'block' and must be provided by way of cash or equity loan secured by another asset.
@michael – great to have you onboard.
Hope this helps.
Hi Derek
You have addressed those points well.
Can I make a suggestion for your website. I think having the start to finish process/procedure on your website would add a level of transparency and also help people to get to understand the process. I'm sure you already explain to people how it works when they call or inquire. But even as a first point to read and be like "yes I would be interested in something like that" would increase interest
Hi Wilko,
Funnily enough – yesterday we met with a new marketing person with a view to reviewing the website + other documentation.
Your comments are appreciated – often we are too close to see things from afar – and what you have said makes absolute sense.
Just got to pull the next project details together first.
Cheers
Hi all,
A brief webinar was run the other night as a way to update the investors.
The main thing to come from it is that we are now running 7 months behind schedule!!!
The new settlement date is Feb 7, 2015.
I'm sure there was more in the webinar than that, but I had trouble getting my jaw off the ground for the rest of the webinar after that was revealed!
A reason couldn't be given during the webinar and so there have been many emails to and from the guys at EOS and Bird since, and we're still a little unsure about where at least 2 of the 7 months have gone?
They have assured us that they are working to "recover lost time and to try to bring the completion date back closer to where we initially estimated", so that is a positive!
Regards,
Crido
I have studied their developments as well and think mostly they are a good idea. Very disappointed to hear though the delays already which impacts profit.
My lender was worried how I could get finance and considering the many other investors involved and how that could all work with approvals.
Id love to hear more about your journey Crido and the pros and cons of the development, im most interested in what you are doing, pls keep us posted.
Cheers
DM
Yep, will keep you posted dm!
Hi Crido
Have been researching EOS / Armchair investor and came cross this. Sorry for all the questions.
Did this finish on time?
What rate interest was this financed at?
How much equity/rental yield resulted?
What was the communication like?
What about build quality?
Would you do it again?
Thanks
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