Ceffo, are you Vietnamese?
If so, I can put you onto my Vietnamese Brisbane project manager.
Whether you are or not, doesn't matter, I'm not Vietnamese and he's basically Australian, but I know some people like to work together.
He sourced my 2 Bris sites, did feasibilities and will project manage them from conception to completion, 5 and 6 townhouses.
He's only starting out, but know's his stuff, and has time to do the research and groundwork.
Has built a great team of Architects, Town Planners, Engineers, Surveryors, Builders and Agents.
If you can get the funding, maybe a small development in Bris could be good for you.
Or buy now and develop a little later.
Mate,
I might hit you up for that name if its OK. I'm developing my multi-unit site in Mona Vale right now. In fact my builder just rang to confirm they're excavating the basement right now and the revised plans are ready to go in for the section 96 approval. It will be done in 12 months time and I'll be looking to do something else in Brisbane. I'll probably buy a PPOR in Toowong first for a million or a touch over but will then be into developing again.
For those interested, I post as MichaelW on Somersoft and used to be quite prodigious in my posts. I don't post as much lately as I spend all my time over here!
My Mona Vale build has been a drawn out affair as the GFC in the middle cost me some big cash on shares and made my loan case for the development difficult. I got it through this year and have now commenced the build but its an expensive commercial loan. The banks don't like lending to develop at present. Stick to simple buy and hold existing residential stock for now would be my advice. Its no wonder we're not building enough is all I'll say.
Still, my project is looking good. Quick financials for those into numbers. Site cost $750K. Getting it to DA and commencing $150K. Interest servicing and contingency $100K. Build Contract $1.3M. So, that's $2.3M for the total costs. But its conservatively valued by the banks in today's market at $2.7M. Only $400K profit on paper, but in reality they'll value closer to $3.0M at completion for a $700K odd profit. I'll hold all three and rent them out. Will be cash flow neutral to marginally positive at completion on that lend.
I also own another house in Narrabeen Sydney worth $850K renting for $800pw which is virtually paid off. I think at completion my portfolio will be $30K odd pa cash flow positive.
I'm going to get the bank to release my Narrabeen title once I've developed Mona Vale and created that extra equity. It will take the Mona Vale loan to valuation ration (LVR) to about 80% which should be OK with the bank. I can then sell Narrabeen and free that $850K odd in cash. Its my former PPOR when in Sydney so is CGT free. I'll then take that $850K North as deposit on my new PPOR in Toowong. Whatever I don't spend goes into the Mona Vale IP offset account.
I'll then take out a Line of Credit (LOC) against my new PPOR in Toowong and look for a Brisbane development site or a simple CF neutral IP or 5.
All good, just struggling with the cash flow this year while I develop a $2.3M cost site with no rental income until complete. That's a lot of interest with no rental income to assist until right at the end...
Cheers,
Mike (MichaelW)
*edit* For those wanting to track it, here's my
development blog on Somersoft *endedit*
