My "Armchair Developer" Experience (cont. from Somersoft)

Discussion in 'Development' started by Crido, 25th Jun, 2015.

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  1. Spanna

    Spanna Well-Known Member

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    Mmmm I was initially concerned when i first looked into EOS group and the background/ interrelationships of those involved. Glad to hear you are progressing closer to completion, interested to see final market value and rent-ability.
    Good luck
     
  2. Crido

    Crido Well-Known Member

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    UPDATE: The Development Manager - Bird Property Group, in conjunction with EOS Property Group have updated 33 Windsor Street's Vesting Date to October 30th "subject to the usual issues such as inclement weather, the provision of the required certificates from the various authorities, issue of titles in a timely manner etc.".

    This is an update on our previous Vesting Date of September 11th this year (and several updates away from our ORIGINAL Vesting Date of August 2014!).

    This date also comes with an update on costs to each Joint Venture Member of approximately 2% (on top of the 7.5% increase we were informed of back in February), which equates to a total of $22.334 extra so far for myself as a one-bedder investor - and more again for the two-bedder investors.

    Bitter-sweet news ... we're getting closer, however our expected margin is tightening.

    We're remaining positive ... and still consider the superb location (and hopefully the quality finish of the product) will mean this one's a worthy medium to long-term investment to hold on to!

    Cheers,
    Crido
     
  3. Crido

    Crido Well-Known Member

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  4. MTR

    MTR Well-Known Member

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    thanks for update
    The market is softening in Perth as you know, fingers crossed it does not continue to fall

    MTR
     
  5. FIDO

    FIDO Member

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    Crido sorry to hear it - but unfortunately EOS have stuck to their reputation.

    Can't believe that they still operate - even advertising the original figures for their 'developments' on their site.
     
  6. IronShank

    IronShank New Member

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    Beckenham has suffered similar fate to Crido's project. Requests for additional funds ~$18k, interesting interrelationships, high cost contractors and huge blowouts in time. We are at the 2 year mark now and we only have a dirt patch to show for it.
    I cant believe they have the nerve of still flogging the dead horse with new projects.
     
  7. FIDO

    FIDO Member

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    Similar trends with these projects - cant be just bad luck! Here's hoping there is some karma heading there way.....
     
  8. MTR

    MTR Well-Known Member

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    With nothing but failures I am so surprised they have other projects on the go, latest Bayswater, and people jumping in. Clearly they are not looking closely at their track record, blindly jumping in.

    MTR
     
  9. Crido

    Crido Well-Known Member

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    Yes, very strange ... wish I new three years ago what I know now! :rolleyes:
     
  10. MTR

    MTR Well-Known Member

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    Sometimes you take a punt, and this one did not pay off, but perhaps the next one will be a pearler. Just have to suck it up, learn from it, nasty lesson, but you did not lose your shirt.

    Keep going, don't let this stop you moving forward.

    Did you read my post about $1M lost from my partner's failed business. If I can pick up the pieces, anyone can. Enough of my preaching for the day:)

    MTR:)
     
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  11. Crido

    Crido Well-Known Member

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    Hi MTR,

    Thanks for your words of encouragement - and yes, we're keen to use the lessons learnt here to improve our investing skills on future IP purchases!

    Looking forward to the next one already!

    I'll have a look for your post and have a read - sounds interesting! :eek:

    Cheers,
    Crido :)
     
  12. mrdobalina

    mrdobalina Well-Known Member

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    Agree. Every step, including missteps, is a learning experience. Add it to your armoury and they will help with future decisions.
     
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  13. Crido

    Crido Well-Known Member

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    It's been a few months since my last update ... since then we've were told of a Movember 30th Vesting Date (and that's been and gone with nothing coming to fruition), so we're still waiting for an updated Vesting Date. In fact, we're unsure of even a Practical Completion Date for the construction yet, and our construction loan (which we investors have to pay-out at completion) keeps accruing interest at 17%!!! Sometime in the New Year we've been told we might Vest and take ownership. Probably, no ... maybe, February.

    Obviously we're very disappointed in this development and our investment in the people and businesses behind the development. I crunched some numbers recently on a late Feb Vesting Date and it has the one-bedder investors (like myself) sitting at a loss of approximately $78,791.06 and the two-bedder investors sitting at a loss of around $95,744.61 (and that doesn't even factor-in the market slump of between $35K - $65K).

    We're still hoping the great location sees us getting tenants in quickly when the day finally comes that we can employ our Property Manager.

    Oh well, you live and you learn.

    Cheers all,
    Crido
     
  14. MTR

    MTR Well-Known Member

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    thanks for sharing I think that was brave, ok lesson learnt, it will rent, just move on and the next one has to be a great deal:)

    all the best

    mtr
     
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  15. mrdobalina

    mrdobalina Well-Known Member

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    I saw 4 re signs driving past today. Not sure if all for lease or any for sale.

    Learning experience.
     
  16. Crido

    Crido Well-Known Member

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    No, not ours mrdobalina ... way too soon for advertising unfortunately. You're thinking of EOS Property Group and Bird Property Group's Charles St development I think. Same companies and similar issues/delays/costs, but a little further along than us at Windsor St.
     
  17. FIDO

    FIDO Member

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    Sorry to hear history repeating Crido

    EOS and Bird stung me severely in the Pilbara.

    Same story as yours on both (yes 2!!!) - outrageous.

    Bring on the karma , these guys screwed me royally.
     
  18. sanj

    sanj Well-Known Member Premium Member

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    Sorry to hear. I live 100m away; can take some photos for you if you like?

    If you don't mind sharing, how did you arrive at the figure for the loss? To go from an estimated say 60k profit to a 79k loss means estimates were out by 140k and that doesn't even take into account the drop in market. Outrageous
     
  19. Barny

    Barny Well-Known Member

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    Wow @Crido, just read the whole post from start to end. Sorry to hear and amazing that you seem to have kept your cool about it. I know there is no tone in text, but I would have lost it.
    Thanks for sharing, great learning experience for all to read. Cheers and best of luck.
     
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  20. MTR

    MTR Well-Known Member

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    yep Crido is made of the right stuff, good on you:)
     
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