Build in Reservoir, Melbourne

Discussion in 'Development' started by MitchelR, 12th Aug, 2017.

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  1. MitchelR

    MitchelR New Member

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    Hello there,
    New to this, but looking at putting up Townhouses in Reservoir for build and rent, as opposed to build and sell. Also would like to hear about your viewpoint on Croatian and Turkish builders ... and your experience with them, as I would like to shortlist them for our project.

    Lastly what are the things to watch out for (in terms for cash-flow) during the build, which I anticipate will take around 12 months. Thanks in advance
     
  2. Simon Moore

    Simon Moore Residential & Commercial Mortgage Broker Business Member

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    Level 2 287 Collins St Melbourne VIC 3000
    What point are you in the process? Have you had plans approved?
     
  3. The Y-man

    The Y-man Moderator Staff Member

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    Suggest having a chat to @PacMan

    The Y-man
     
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  4. MTR

    MTR Material Girl Premium Member

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    I used Turkish builder for my 4 Thomastown development, good builder, smaller builder so very competitive in terms of price, however the major risk was the Builders Cashflow, which was clearly evident during my build, so started having concerns later in the project. Heard of the story robbing Peter to pay Paul.

    I assume you already own the land ? Otherwise at this stage of the cycle would there be any point building as opposed to buying the new product, less risk and perhaps end up in the same scenario??
     
  5. MitchelR

    MitchelR New Member

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    Hmm, interesting MTR. How does one guard against cashflow of builder, as most builders have Body Corporate (Pty Ltd) structures, so even if they go belly up, it does not affect their personal assets.
    I guess though that if your Turkish builder was smaller builder ... he would'nt have as much of an opportunity to pass the parcel (as he would have fewer projects). How did you reduce your risk for this?
     
  6. Mustafa Salehi

    Mustafa Salehi Well-Known Member

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    I know quite a few small Turkish builders from the northern suburbs. I wouldn't use them personally as I know the way they work. Yes, they will always be cheaper than your more reputable builder but the risk is not worth it IMO. There is a couple good ones but they generally too busy with work so they are selective with their customers.
     
  7. MitchelR

    MitchelR New Member

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    Thanks PacMan ... better safe than sorry - what are the risks?