VIC Post up on new land releases in Melbourne

Discussion in 'Where to Buy' started by Westie, 29th Aug, 2017.

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  1. croseks

    croseks Well-Known Member

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    You have to keep in mind that the banks have a vested interest in these new estates just as much as the developers who are building them. The banks have to valuate new land higher than before to create scarcity in an area where there is abundance of land.
     
  2. ashish1137

    ashish1137 Well-Known Member

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    That is just an assumption.

    Things have changed. However, on the contrary, I am seeing a lot of opportunities at 4.5% ro 5% yields and 8% to 18% equity in some of the deals (not considering one time costs).

    I say, "CEASE THE OPPORTUNITY FOLKS!!"

    Cheers
     
  3. Indmr

    Indmr Active Member

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    Last edited: 6th Jun, 2019
  4. Westie

    Westie Well-Known Member

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  5. ashish1137

    ashish1137 Well-Known Member

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    There are lots available way lower than whats given in this estate nearer to amenities and station.

    Keen to understand what sort of people are these qho would blindly just go ahead and book. :)

    Well, more bargains might come end of 2020. Be ready people.


    Regards
     
  6. Woodjda

    Woodjda Well-Known Member

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    Is there anything to say that those sold and under offer figures are real? Or just the company's word? It seems to go against the recent news around demand for new estates and it's obviously in their best interest for demand to appear high.
     
  7. Indmr

    Indmr Active Member

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    Not sure if the figures are real, considering so much land is available on gumtree and through other estates. The estate is publishing these figures on the website.
     
  8. Sani

    Sani New Member

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    How is Atherstone Estate turning out? Is it still a good place to buy a lot?
     
  9. MTR

    MTR Well-Known Member

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    Bump

    Any updates on this market, land and house?? Is there still money in this? Or gravy train over
     
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  10. ashish1137

    ashish1137 Well-Known Member

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    There were lucrative opportunities until 3 mo ths prior.

    The margins in this market reduced to 7-8% and yields dropped to 4-4.3%.

    Buying is still there, buyers are still there, stock is still there.


    Regards
     
  11. The Y-man

    The Y-man Moderator Staff Member

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    After opportunity was "ceased" as opposed to "seized"? :D:D:D:D

    The Y-man
     
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  12. MTR

    MTR Well-Known Member

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    Which tells me market has softened?
     
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  13. Westie

    Westie Well-Known Member

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    Quite the opposite, is what @ashish1137 is referring to. There were some good money making opportunities till 3 or so months ago in the H&L segment. I locked in one in October last year, the margin was reasonable (about 15% after costs) but not great. Those deals have been snapped up and there aren't none left at those margins. That tells me the market's hot again. This is the SW/NW sorta area. A mate of mine works for HockingStuart in Wollert and he tells me there's heaps of activity like they saw in the last boom.
     
  14. Lone_Wolf

    Lone_Wolf Well-Known Member

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    For H&L, what sort of margins we after, 10-15% returns?
     
  15. InternetName

    InternetName Member

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    Sorry to ask a possibly stupid question. But what margins are you talking about? How was H&L a good deal up until a couple of months ago? I thought those were all indefinite supply areas.
     
  16. Westie

    Westie Well-Known Member

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    Yes, but 20-30% is what my man @sash targets.
     
  17. Westie

    Westie Well-Known Member

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    Indefinite supply, yes, but the developers/councils slow down the releases to keep prices high. You could build all the way (circuitous) to Adelaide, otherwise. Till a few months ago, there were several buying opportunities benefiting from people who put deposits in on blocks 1-2 years ago but couldn't settle (aka the nominee scam). You had to be decisive though, if an opportunity pops up, you needed to be ready. As an example, I was ready in 2016 or so and greatly benefited from a similar opportunity.
     
  18. Lone_Wolf

    Lone_Wolf Well-Known Member

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    I really can't imagine anywhere in Vic atm where you can achieve 20-30% returns. Are you able to shed some light? PM me if you must. Very intrigued
     
  19. sash

    sash Well-Known Member

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    I won't do it unless I have a minimum of 25%!

    Some wannabe developers in working on less than 20% margins on over $1.6m projects. I don't they have done their GST cals either..... ;)
     
  20. Westie

    Westie Well-Known Member

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    No magic to it. Look at the areas surrounding Geelong. Not saying there are opportunities right now, but like I said before, if you looked around hard enough and were ready/decisive, those kinds of margins were possible. Talk to the agents managing land sales, who knows there may be an opportunity as I type this. Be aware this kind of thing depends on the market, titles are generally 1-2 years out and if the market turns your anticipated 20% return could well be down to like 5-7%.
     
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