VIC Thoughts on Rockbank h & l

It depends what you buy at...if you are silly enough to pay full price..then good luck....but people are making money...as demonstrated by quite few here.....

 

On deposits as low as $5k, I don't agree. Anyway proof is in the pudding. It's working for several of us here. Maybe it's not right for everyone. But a lot of people complain they can't get in the market. I see my $5k deposit turn into $30-50k on settlement. I could just do a. Ack to back and make $30k. Go from 5-30k in 9 months. Do that a couple of times and you've got yourself a real deposit.

I acknowledge that this only works in a rising market. But Melbourne is in a rising market and it's working for me.

 

Demonstrated? Maybe. Armstrong creek (your example) has been taking deposits for the past 5 years. If that's how long you had your deposit waiting as a first time investor, you had to wait 5 years to see any growth......

 

I'll tell you what find me a house for under 300k a complete house at the Villawood Estate ..it has to have 3 brms....lock up garage...and bathroom....just bought one fully complete turnkey for 258.k...... @kimba88 @ashish1137 @larrylarry all got on the bandwagon...will leave them to elaborate. Oh by the way if you think it is cheap and nasty......the fittings I looked at would be considered upgrades for major buidlers.

I have one there where I have just put rents to $400pw....as the club house is ready in Nov. 19 sq double story bought for 335k.

 

Be an unusual case to have deposit for 5 years considering standard sunset clauses are 24 months.

 

If 5 or so members say they are doing something with good results in a market, could it be possible they are? Rather than trying to dissprove, I'd be asking how and trying to learn from them.

 

Gents, happy to learn. That's why I'm here. Just it's been my workplace for quite some time and I haven't seen the equity gains your suggesting. Happy to be wrong. Happy to know it is possible to get discounts from land developers and major builders that aren't just marketing hype. Best of luck with it.

 

Sure is.....it clearly shows the lack of knowledge...

A couple things which is constraining land:

1. There are only 3 earth moving and clearly companies who can handle the volumes of large land subdivisions. They are all flat chat!

2. The Big boys Stockland and Lendlease now have their own teams as a result...so they keep land releases on track

3. The small players have now hamstrung and it is not unusual for land to be delayed 6...even 12 months

4. Land is increasing at the rate of 5-10k per release....

5. Migrants from India, China, Asia are changing the mindset and they want shiny new houses with all the mod cons.

6. The 24 months sunset is one of the clauses I would revisit and also the ridiculous clause that you need to settle with 2 weeks notice. I have 6 weeks on mine.

Ditto...

 

If we did not make these gains...how would we get past 1-2 developments then...income will only service so much....you need the equity gains to keep it going.

People baulk at 60-80k profit on a 300-320 development...but the profitability is almost identical do buying a house for 500k and build 3 units for 600k and selling them for 1.3-1.5m...same levels of profitability in the end. Some of the smarter developers just get the permits and flog them...I believe @MTR made killing on some in Broadmeadows....

Another point...most land developer are getting cocky now because if supply does not meet demand. They are now asking 10% deposits upfront and will not negotiate tersm any more.

My build cost last year for a turnkey spec'd up 17 sqm house was 173-177k ...now it is about 185-195.

 

Then there's the herd mentality. some are good followers and some are naturally good influential characters....

Perhaps one reason why we have so many meetups in Sydney and some people attend all of them... get caught up in the band wagon etc, not necessarily a bad thing though, but here I use the common phrase "time will tell" with these H&L when Melbourne markets starts to cool.

 

Lots of members who contribute.......but then of course there are others who hide in shadows.....others quote stats convenients ad nauseum......results speak for themselves...there are people who are doers and others who sit on their hands.

Of forgot..we also have people who tear other people down...we call this the Tall Poppy Syndrome.

The question is which one are you??

$20m gross....$12m equity...45 places.....rental income 800k....check.

Missile lock set........

 

Not sure which three your referring too.. Winslow, Fulton Hogan, BMD? The smaller ones are more region specific like Gray Bruni, civlworx, Bayport, Symon Bros, Fortunado, streetworks amongst others and there are some big ones from WA that moved over like Georgiou and Ertech.

 

Yes I typically demand 30-45 days forom TItles too.

 

Yes dependent on regions....the trouble is the bigboys like Lendlease apparently seeting up their own team out frustration....on how long it is taking...

 

This is very true in my experience.

 

A real pain...if you don't ..set it up front.

 

One of the reasons driving the outer market the inner city market has had its run...it is spreading out.....even then at some point there will be last hurrah even for the outer suburbs. Me thinks that is when places like Werribee hit 450k median and Melton around 380k.....

Melbourne suburbs where house prices have fallen the most this year

 

I won't elaborate but I must say I am going against the grain here (getting H + L). Hopefully, it pays off after all the DD I could do. If this is herd mentality as one suggested, then there's plenty of herd mentality towards Logan. I always have a plan B.
Will report back in 6 months or so. Slab work will start soon.

 

You do that.... be careful about mentioning the "L" word.....the barbarians will be at your gate....

Geez....that was quick...are you saying that your slab will be in by Nov?

 

Ouchhh!!