Lessons from the downturn - when development goes wrong

Discussion in 'Investor Stories & Showcase' started by Mel Morgan, 21st Apr, 2019.

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  1. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

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    This afternoon I packed the last of my styling items, cleaned up and said goodbye to these babies. :(

    Onwards and upwards to better things..time to focus on the next chapter and do it really well.
     
    lixas4, Morgs and paulF like this.
  2. Luke T

    Luke T Well-Known Member

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    Wow ! they look incredible .It takes a big person to share publicly what we all go through at times.I honor you .Well done .Its just one deal.
     
  3. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

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    Thanks for your kind words. Already have an Eastern Suburbs project well underway - and feel free to come say hi at the Info session or a meetup :)
     
    Luke T and Morgs like this.
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    @Mel Morgan is a developer, capitalising the interest is part of the game. Paying down debt doesn't come into the picture.

    Overcapitalisation is a risk at the peak of the market which only becomes apparent when it's too late. It comes down to the fundamentals - if you overpaid, you'll never make it back. Sensitivity analysis, DCF, IRR all need to be considered, assumptions checked for robustness, timelines both crashed and extended.
     
  5. euro73

    euro73 Well-Known Member Business Member

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    Read the name of the member I wrote that message to. It wasn’t @Mel Morgan :)
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    I probably took it out of context as a development thread vs your comment towards an investment issue. :oops:

    Comments still hold for development.
     
  7. housechopper2

    housechopper2 Well-Known Member

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    Development looks great - thank you for sharing. I haven’t seen a development like that before without any off street car spaces provided.
     

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