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Hot Market..... you snooze, you loose

Discussion in 'The Buying & Selling Process' started by Be Developer, 3rd Jul, 2015.

  1. Be Developer

    Be Developer Property Developer Business Member

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    This is real life example.

    Property came up on market at 4 PM on Tuesday!

    we advised our client to make an offer of asking price and signed a contract by 6 PM, Agent confirmed acceptance of offer by 7 PM with $10k above our original offer.

    Next day, we negotiated to get discount $10k sighting a minor building effect and vendor agreed to it!

    all it took 3 hours to seal the deal!!

    property details:

    1180 Sq meter land with house, Melbourne Eastern suburb, Purchase price sub $500K

    if our client sells this property today, they are booking a profit of $100K +
    if developed with full potential,looking at 400K+ profit,


    Moral of the story is if you see a good deal, dont seat on it, try and snap it up before 1st open home. at least sign the contract, most contracts have cooling off period.


    above situation was combination of dud REA, excellent buyer and negotiation skill!

    Hope this helps you to secure a good property!
     
    Bayview, bythebay, Esh and 7 others like this.
  2. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    Be my buyers agent please...
    I want to make money :)
    Can you develop it for me too.
     
    Esh and alexm like this.
  3. Be Developer

    Be Developer Property Developer Business Member

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    @Ace in the Hole

    Any day!

    in fact you fit the bill perfectly, we focus on mid range projects and most of our clients look at our "cost" as "value".
     
    Xenia likes this.
  4. The_good_life

    The_good_life Active Member

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    What are your charges Be Developer ;)
     
  5. Be Developer

    Be Developer Property Developer Business Member

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    Xenia likes this.
  6. Jamie_

    Jamie_ Well-Known Member

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    easiest 15k you'll ever make :p well done
     
  7. MTR

    MTR Well-Known Member Premium Member

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    Any other deals:)

    Mtr
     
  8. Be Developer

    Be Developer Property Developer Business Member

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    Not easy as it sounds...:):)

    Focus is on how to seal the deal quickly in this hot market!
     
    Last edited: 3rd Jul, 2015
  9. Be Developer

    Be Developer Property Developer Business Member

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    @MTR

    You should be happy with this one!!!:):)
     
  10. MTR

    MTR Well-Known Member Premium Member

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    Keeping tabs Daily, they auctioned property down the road only 867 sqm, only 1 unit site, build at rear, sold for $670k , And 750k for another, albeit rectangular block, am Not complaining at 520k a steal, agent was a dud. Plans for 5 villas, next door to my property have been told its a goer, delighted, a big one

    Watch this space, Will post when DA approved, and will post designs for feedback.

    4 is a goer 5 will be amazing.:)

    Will post plans for your input

    Keep looking for the gems the properties outside the square that most will ignore:)
     
    Last edited: 4th Jul, 2015
    Xenia, BKRinvesting, Esh and 2 others like this.
  11. Be Developer

    Be Developer Property Developer Business Member

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    Another one:

    Let;s keep this in the "square"

    When:
    2 weeks ago

    What:
    Swimming pool

    Where
    Sydney Metro

    WTF?
    Purchase price: $2.8M
    Construction cost (13 townhouse 3 bedroom 2 bathroom @$250K) = $3.2M
    Other cost= $(13X$100K) = $1.3M

    total cost = $7.3 M (give n take)

    resale value (13X$750k) = $9.7M

    Total profit; $2.4M

    Project time line 12-18 months


    Just goes to show even in hot market, there are good deals!

    There is a church (somewhere in NSW) and golf course(Sydney) if anyone wants to have a go at out side of box solutions!
     
    Xenia, sumterrence, MTR and 1 other person like this.
  12. JMica

    JMica Well-Known Member

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    Are buyers agents fees tax deductible ? Or is it seen as a capital cost?

    And I'm assuming your market is Melbourne ?
     
  13. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Capital cost. But interest on a loan/LOC etc used to pay the BA fees is generally deductible.
     
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  14. Be Developer

    Be Developer Property Developer Business Member

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    as @DaveM said,
    Capital cost. But interest on a loan/LOC etc used to pay the BA fees is generally deductible.

    However, best to consult your tax adviser!
     
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  15. MTR

    MTR Well-Known Member Premium Member

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    .
    I agree even in hot markets there are some great deals, but you have to be cashed up and ready to pull the trigger.

    The beauty of buying in a hot market is if you get the timing right you don't necessarily have to build, the land is rising so quickly you may be able to flip it even without plans and permits.
    Keep going you beautiful thing.. Melb:)



    MTR
     
    Last edited: 4th Jul, 2015
    Xenia likes this.
  16. Be Developer

    Be Developer Property Developer Business Member

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    bob shovel and WattleIdo like this.
  17. King

    King Active Member

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    is this for a new house? did you do any building or pest report? did the client visit the place in person?
     
  18. Be Developer

    Be Developer Property Developer Business Member

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    No
    No. Existing house will be demolished in approx 6 month. No point for b&p
    No.we used team of professionals to asses the site.. Client visited site 3 weeks later.
     
    Xenia likes this.
  19. MTR

    MTR Well-Known Member Premium Member

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    @bedeveloper

    Just curious any updates on any development sites you may have recently purchased?

    An update on my site in Melb Eastern suburbs.

    My architect today confirmed that he has managed to get 5 townhouses to fit on site, at 20 sqm each, this size includes the double garages/carports. As the property is in a court its imperative to make sure there is adequate parking. We also plan to have master bedrooms downstairs due to demographics we expect end product will attract downsizers.

    Early days, will keep you posted, however hoping to have this bedded by end of this year.

    MTR:)
     
  20. RetireRich101

    RetireRich101 Well-Known Member

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    @MTR
    You can now fit 5 TH and 20sq? There is bound to be big big profit to be made in your development.... congrats!!
     
    Xenia likes this.