Does anyone want to share a deal

Discussion in 'Investment Strategy' started by MTR, 3rd Dec, 2015.

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  1. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Haha! Lol!

    I used to love Freedom - but think their quality has deteriorated. But I will check these out anyway :)
     
    Last edited by a moderator: 5th Dec, 2015
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  2. tomlemke

    tomlemke Well-Known Member Business Member

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    They are called "tractor" stools from memory make sure you get the smaller sized ones
     
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  3. samiam

    samiam Well-Known Member

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    Its really cool and beautiful @tomlemke

    are you planning to do it again?
     
  4. D.T.

    D.T. Specialist Property Manager Business Member

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    Wow that's massive return! Do you normally include stamp duty, sales agents fees, holding costs, gst/cgt, etc in your ROI or do you go further into that down the track?
     
  5. MTR

    MTR Well-Known Member

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    Buying costs include everything. I did not have to pay GST/CGT, profit was offset against my husband's business losses

    The only thing missing is oops selling fees $18,140

    Agreed, It was very good return and easy because no build involved. thanks:)
     
    Last edited: 6th Dec, 2015
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  6. tomlemke

    tomlemke Well-Known Member Business Member

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    I have two other properties that have similar potential : )
     
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  7. lynchy

    lynchy Well-Known Member

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    Palm Beach, FL
    2 unit apartment block
    1 x 3 bed
    1 x 2 bed
    Purchase price: USD$35,000
    Purchased: 2012
    Rent: USD$1,800pm
    Sold: 2014
    Sold price: USD$89,000
     
    Last edited: 7th Dec, 2015
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  8. 158

    158 Well-Known Member

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    US$1800/week income on those numbers and you sold it? Or is that meant to be monthly figure?

    pinkboy
     
  9. lynchy

    lynchy Well-Known Member

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    Apologies, it's meant to be monthly

    And yes, devastated I had to sell. Sold when the usd was at $1.05
     
  10. samiam

    samiam Well-Known Member

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    is it not too pretty to rent it out?? or you will be aiming to sell to OO?
    either way, hard work and vision will pay off!
     
  11. MTR

    MTR Well-Known Member

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    Lynch
    you still holding properties in US?
     
  12. lynchy

    lynchy Well-Known Member

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    No I'm not unfortunately...still plenty of great opportunities if you're holding USD. 20 - 30% net returns to be had
     
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  13. Elives

    Elives Well-Known Member

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    i thought you would have had to wait at least 3 months before doing reval, which bank did you use? and what type of valuation if you don't mind me asking?
     
  14. Omnidragon

    Omnidragon Well-Known Member

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    Not my deal.

    But the corner of Russell and Bourke in Melb just sold for $18m. Could've bought it around 12 years ago for $2m.
     
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  15. Coota9

    Coota9 Well-Known Member

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  16. MTR

    MTR Well-Known Member

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    This must be another myth buster, what is it..... property doubles every 7-10 years :p
     
  17. Omnidragon

    Omnidragon Well-Known Member

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    No not that one. I know the owner of that one too, but the one opposite the road. The Nandos building, formerly NAB bank
     
  18. MTR

    MTR Well-Known Member

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    ok
    what about one of your deals if you care to share?
     
  19. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    This is not a done deal - this is a deal that I saw, thought 'yup that would be nice' and didn't do anything about as I didn't have any clients looking for something like that and didn't want another project for myself and of course it was an auction so no idea what it would go for.

    107 Forrest Street North Perth WA 6006 - House for Sale #121557566 - realestate.com.au

    It was an auction so hard to tell what it would go for. I felt that $1.1-1.2m would be good buying, but I knew that the current owners had paid $1.2m for it in May 2014. This was going to be the tough one - the market had gone down since then but North Perth was holding quite well - would the owners accept less than what they paid etc etc

    The most feasible scenario I came up with was:
    Two x R40 218sqm block with 200sqm townhouses facing one street side by side
    Two x R40 120sqm block with 70sqm single bedroom dwelling townhouses facing the other street side by side

    There was other feasibility like apartments but I was looking at it in a KISS (Keep is Simple Stupid) way which would be easier to finance, easier to get approvals for and easier all round.

    Estimated total development cost of $1.050m (inc holding costs and demolition)+ land
    Estimated end values $500k for SBDs and $900k for the townhouses = 2.8m

    The site hasn't settled but the REA said the auction was won at $1.18m so with that figure the site is around a 22% gross return. I was a little surprised the owners let it go for less than they paid but this is why you can't disregard these sites.

    Not a flash return but there isn't a lot stacking up above 20% in Perth and this would be a solid CG area. I didn't do a terribly indepth feasibility on it as it wasn't something I was going to go ahead with. Just a simple excel desktop based feaso.
     
  20. Omnidragon

    Omnidragon Well-Known Member

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    Yea ok there's a place for around $3m. Owner-occupied. Agent told me rent should be $130k or so.

    Anyway I ended up leasing it for a lot more 2 weeks after settlement (at say $200k plus, and I had around 4-5 reputable establishments wanting to lease it), and this area of town trades at 3% yield or so.