Nathan Birch - Big Aussie Deal

@Nathan Birch has a new venture.

http://www.thebigaussiedeal.com.au/

 

So what is this?

Sounds like a home and land package company

 

He was on the box tonight with 7 & they are all talking about buying property in bulk......

 

Doesn't look like a bad idea to be honest

 

So he goes and buys or options or otp for a huge chunk of land and on sells them in parcels at a margin?

 

I am NB. I could not contain the secret any longer

Or i'm Nostradamus, it's hard being right ALL the time

Have to tip your hat to NB. he's taking advantage of the folk that are priced out of sydney. Happening again where market peaks and everyone cry's that it's all to hard to get in. now NB has a product to appease the FOMO's
He would have bought the farming land out in the hills or more likely schoie as he loves the lower socio **** holes and now he's splitting them up to sell at a great mark up for himself but will not selll as much as the greedy developers

great little niche market

 

It would be totally dependent on what and where he is buying?

My guess is he will attract many buyers who can no longer afford Syd or Melb markets.

 

Really like to see what he has purchased for his clients, only way of knowing whether it actually stacks up.

 

i guess if you have the backing, finances and knowledge

and assuming its legitimate (not a henry kate)

I see buying huge blocks and onselling by splitting up using his reputation a great idea!

 

.... but how do you know unless you know where he is doing this? There are developers who do this and use OPM but that is how they reduce their risk and they still need to get it over the line, in the interim investors money is locked in and there is no end date if this makes sense.

Cant comment unless I know where and what he is buying?

 

I can't see anyone doing anything cheap or affordable in Sydney or surrounds, no one will give land away and no one is going to gift developing costs and councils won't give up a good go at the trough, builders won't work for free nor will all the trades and material suppliers.

10 or 20 grand off anything in the Sydney or surrounds is basically nothing, there is not going to be any 200k houses or 300k houses anymore, not even a crash and burn will return these prices, talking about housing affordability all the time is like talking about climate change thinking that will contain the problem.

But if they can save them something and make money, then why not.

 

Of course. I was merely pointing out that if his stock vs price is decent. It's probably a great idea for him.

Let's hope he doesn't flog off absolute dumps

 

All out West in places like Camden, Parra, Penrith etc

First home buyers urged to 'buy in bulk'

 

This is one of the case studies he provided, obviously take it at face value and do further research.

South west sydney is very broad but i'm guessing its down towards the gregory hills area. Purely looking at the land component, it would be 300k for a 450m2 block (using the lot sizes from the photo) which works out to $666/m2. Typically subdivided lots in the region sell for upwards of $1000/m2 for the 300-500m2 sizes so i'd consider it a fair deal?

A friend also bought in the same area in 2014 for 300k, but this was a 375m2 block.

Construction costs are a completely different story, pointless to try and analyse this given we have no idea in regards to the build specs.

My assumption is that he's just making quick cash from the buyers agency fees and not in the development. Given the point of the cycle in Sydney it's understandable that he wouldn't want to have have significant cash tied up in a development. Who really knows though, there is very limited information from both the website and 7 news interview.

 

You wont get good blocks in desired estates for 600/m2

Not near Liverpool, I know people were paying over a grand years ago about 20 mins out from Liverpool, it just went up from there.

 

I suspect it could also be not developed land yet. Where they have an option or do own it but will use OPM to develop it and do all the infrastructure etc.
By using interest free OPM they can afford to then say it's at a bulk discount lot as their holding costs are less and still make a decent profit.
With the 70 in SW Sydney they probably have to reach a % of group buy in before it goes ahead.
Sounds a bit like some landbanking deals that were around Perth.
By the time the development happens and houses are built you'd want Sydney prices not to have corrected.
I'm not saying this is what it is, just supposing how you can harness the power of people and their money to be able to offer 'bulk' discounts

 

Link to the 'case studies' http://bigaussiedeal.com.au/thankyou

Lack of transparency a concern.

 

I remember years ago back on somersoft, he posted about some land he was acquiring. Anyone else remember? I'll try and see if I can find that thread.

EDIT: Can't find anything. Maybe I was imagining things or perhaps it was a single block...

 

Yes transparency isn't Nathan's strong point. That should be enough to deter any investor (or PPOR purchaser) that knows what they're doing.

So there's a potential for profit, but I think that the risk profile is far too high.