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  1. #761

    Default

    Nick - with that sort of coin you should be looking out my way.
    1 - Eastern Porirua Development announced by One Term Ardern
    2 - The (draft) District Plan re-zoning much of the area medium density
    3 - HLC already working the plan for the area

  2. #762
    Join Date
    Feb 2013
    Posts
    386

    Default

    Quote Originally Posted by Nick G View Post
    I have approval/resources to buy up to $2mil for my next adventure. Was thinking of trying to get a site in Auckland, put 6 townhouses on it, sell four and keep the others. I haven't done this yet but I'm sure the numbers would be there. Councils to be honest scare me enough not to try. I'm comfortable taking risks I can plan around but the whims of public servants...
    Land + build will alone set you back $2.5-$3M (quality house)
    Council will then bury you in the paperwork(costs)

    But seriously can anyone share their experience of building townhouses/Terraces , what is the optimum or min units to make it worthwhile.
    I know John bolton build built 11 Terrace houses before the boom and he barely broke even Never again he said. Of course the price has gone up significantly know so have all the costs.

  3. #763
    Join Date
    Apr 2009
    Posts
    1,009

    Default

    Quote Originally Posted by BlueSky View Post
    Land + build will alone set you back $2.5-$3M (quality house)
    Council will then bury you in the paperwork(costs)

    But seriously can anyone share their experience of building townhouses/Terraces , what is the optimum or min units to make it worthwhile.
    I know John bolton build built 11 Terrace houses before the boom and he barely broke even Never again he said. Of course the price has gone up significantly know so have all the costs.
    Did John Bolton factor in the costs before settling on the land, perhaps the price of the land needed to be re-negotiated? Did he communicate his intentions with council during a feasibility study before going unconditional purchase of the land? You make your money and setup the plan at time of buying.
    Last edited by DaveW; 04-10-2019 at 01:15 PM.

  4. #764
    Join Date
    Apr 2009
    Posts
    1,009

    Default

    Quote Originally Posted by Davo36 View Post
    I sometimes think of selling, but I have no idea what I would do with the money.
    Buy a value-add commercial property?

  5. #765
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    15,438

    Default Another Populist, Deceptive Rhetoric Myth.

    Quote Originally Posted by DaveW View Post
    You make your money . . . at time of buying.
    That's simply not true.

    The best you can hope for at time of buying is to ensure the potential for profit.

    At the time of buying, the cash flow is all outwards.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  6. #766
    Join Date
    Apr 2009
    Posts
    1,009

    Default

    Quote Originally Posted by Perry View Post
    That's simply not true.

    The best you can hope for at time of buying is to ensure the potential for profit.

    At the time of buying, the cash flow is all outwards.
    Actually before you settle you should always aim to have
    1) cashflow inwards
    2) delay outwards
    3) discounted outwards.

    John Bolton achieved one of theee with his pre sales.

  7. #767
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    15,438

    Default

    No matter what the 'aim' is, the myth (upsell BS) remains the same.

    No buyer "make[s their] money at [the] time of buying."

    I hereby challenge you to provide any examples of how any PI buyer has more money-to-their-name within an hour after buying, than the PI had before the purchase.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  8. #768
    Join Date
    Apr 2009
    Posts
    1,009

    Default

    Quote Originally Posted by Perry View Post
    No matter what the 'aim' is, the myth (upsell BS) remains the same.

    No buyer "make[s their] money at [the] time of buying."

    I hereby challenge you to provide any examples of how any PI buyer has more money-to-their-name within an hour after buying, than the PI had before the purchase.
    We are talking here construction. If John Bolton had pre-sold 90% prior to settling on the land and the vendor left money in the deal then don't you see there's money made before construction even begins ? .

    If you're asking an example inwhich investors can make money with buy and holds then a pre-lease of a vacant property allows you to refinance higher than the original purchase price. I.E. you fill a need of a tenant looking to upsize or downsize into a new property.

    With commercial property you want to buy add value which allows you to recycle your profit into another property, more typically in 9 months time you can substantial add value.

    But if you don't buy right in the first place then you set yourself up for a risky venture. We should be asking why are people buying at market value with no add value in the deal, using their own capital and debt, and then wondering why they can't buy beyond 2 investment properties?

  9. #769
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    15,438

    Default

    Quote Originally Posted by DaveW View Post
    We are talking here construction. If John Bolton had pre-sold 90% prior to settling on the land and the vendor left money in the deal then don't you see there's money made before construction even begins?
    Pre-sold does not mean pre-paid, in full. A large percentage of any deposits will be going to the construction company, et al.

    A PI does not make money at the time of buying in the implicit sense of having the project's profit in hand/the bank!
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  10. #770
    Join Date
    Apr 2009
    Posts
    1,009

    Default

    Quote Originally Posted by Perry View Post
    Pre-sold does not mean pre-paid, in full. A large percentage of any deposits will be going to the construction company, et al.

    A PI does not make money at the time of buying in the implicit sense of having the project's profit in hand/the bank!
    Who said anything about pre-paid in full If you decide to spend the money on construction straight away then that is your decision. If you want cash in the bank from subdivision prior to settling the full amount wth the land owner then that's another choice.

    A PI will have profit in hand at time of buying by either realizing the increased equity or assigning to another buyer. YOUR MYTH is in the erroneous assumption that lenders only deal with purchase price.

    There are a lot of different angles to commercial property investing which are not available with residential property.


 

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