Desktop Duplex Development

Discussion in 'Development' started by devank, 10th Sep, 2015.

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  1. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    @BlueSurf the requirements for Perth are quite different than for Brisbane but there would be similar plots of land - but they might be more expensive etc
     
  2. BlueSurf

    BlueSurf New Member

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    Thanks @Leo2413 . I am finding that from my research currently. For a first time property developer, what do you think is the best type of development to look out for in Brisbane?
     
  3. BlueSurf

    BlueSurf New Member

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    Thanks @Westminster.
     
  4. devank

    devank Well-Known Member

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    We had trouble renting out the second unit. We had to drop the rent from $400 to $350. Even that is a 3 month trial period (by tenant). I think we got lucky with the first one.
    Thanks to the lower interest rates, the end cash flow is almost the same.
     
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  5. Aconis

    Aconis Well-Known Member

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    Why the 3 month trial?
     
  6. D.T.

    D.T. Specialist Property Manager Business Member

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    Top job :)
     
  7. devank

    devank Well-Known Member

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    That is what the tenant wanted. Even though they said 'trial' my PM thinks that they will go back to UK after the school term finishes. We thought we would take it as there isn't much demand at the moment.
     
  8. Aconis

    Aconis Well-Known Member

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    Ok. Now I understand. Hopefully they will stay.
     
  9. Maalamaal

    Maalamaal Member

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    Do we know of any one similar to @Westminster. who can source us the land and help me through the development in Brisbane?
     
  10. Perthguy

    Perthguy Well-Known Member

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    This is good thinking. Winter is a terrible time to find tenants in Perth. Later in spring or summer is a lot better. Even if they leave, I believe it will be easier to find a tenant at that time of year. I hope so anyway because that is around when I will be putting mine on the market!
     
  11. RetireRich101

    RetireRich101 Well-Known Member

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    When the duplex completed, did the bank gave a valuation of the duplex on ONE title to be $820k? ( because for the reason you don't want to paid extra rate..etc)

    However you estimated the end value before construction to be $880k total..
    Is there a small shortfall in your estimated and bank valuation, or was it your estimate end value to be on separate title, hence a little higher ?
     
  12. devank

    devank Well-Known Member

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    Both. Our initial estimate was on the separate title. General market was also dropped by about 5%.
     
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  13. Logan

    Logan Well-Known Member

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    +1
     
  14. devank

    devank Well-Known Member

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    Nahhh... She is 'one and only'!
     
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  15. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Resi lending @ up to 90% inclisive of LMI.
     
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  16. Maalamaal

    Maalamaal Member

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    I do know she is the only one but she based in Perth and I am looking for some one in Brisbane.
     
  17. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    @Maalamaal and @Logan why don't you contact @RPI and see if he has any contacts who can help you? He knows everyone :)
     
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  18. Maalamaal

    Maalamaal Member

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    Thanks @Westminster
     
  19. devank

    devank Well-Known Member

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    Just finished my tax return numbers. Rents have dropped from the starting point. Still, it is cashflow positive.
    Here are the REAL annual numbers.
    upload_2017-9-15_16-17-32.png

    Total loan is 80% LVR. So the interest is not on the 100% of the cost of development.
    One of them was vacant for few weeks.
    I'm glad, it is cf+ without the depreciation benefits.
     
  20. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Where did the 20% come from. You should factor this in to get a more realistic figure.