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Dutch Auction; I can taste a bit of sick in my mouth
Topic Started: 18 Dec 2013, 11:22 AM (4,056 Views)
zaph
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Frank Castle
18 Dec 2013, 05:38 PM

If I was starting again from scratch with a clean plate I would be all over it as this is probably the best deal I have come across since 2000
The bank said we're good to buy it , clean up a site and build the first house on the site on a ridiculously large chunk of land and we wouldn't need to get rid of the existing house to do it.
Their would be no council contributions either, this site deserves 6 or 7 two story townhouses


Part of me says leave it - the other part says it'll haunt me forever if I do.


First world problems eh :re:
My post is based on what you've posted in the past with a healthy pinch of assumptions, so correct me where I'm wrong...

How is the local market going? Are there a lot of subdivides and building going on?

Quote:
 
Its fucked
I've spent all day and half the night at it and am still just as flummoxed.


Have you done this much thought on purchase decisions in the past? It sounds like it is a step up the development ladder for you - going from turning one block into two or three houses, to turning one block into 6 town-houses, or a unit block (9+??).

Quote:
 
But because I already have a decent sized project on the go, albeit rather slowly, I dont want to stick the neck out too far just in case.

but we already have a couple of spare blocks attached to existing sites and really,

or a 3 story unit block across the full site and I cant see that happening for a long time yet.


It sounds like you have plenty of land banked to develop that will take a few years min to complete.

Quote:
 
The easiest option is to just buy it and do nothing with it for a few years, renting the existing shitbox out and that would cover the loan at the current 5% but shiiiit, how long do I want to keep at this game for?


Will buying it and banking it constrain your ability to complete the other projects?

Are you a land banker or a developer?

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Catweasel
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Frank Castle
18 Dec 2013, 05:38 PM
Its fucked
I've spent all day and half the night at it and am still just as flummoxed.

If I was starting again from scratch with a clean plate I would be all over it as this is probably the best deal I have come across since 2000
But because I already have a decent sized project on the go, albeit rather slowly, I dont want to stick the neck out too far just in case.
The bank said we're good to buy it , clean up a site and build the first house on the site on a ridiculously large chunk of land and we wouldn't need to get rid of the existing house to do it.
Their would be no council contributions either, but we already have a couple of spare blocks attached to existing sites and really, this site deserves 6 or 7 two story townhouses or a 3 story unit block across the full site and I cant see that happening for a long time yet.

The easiest option is to just buy it and do nothing with it for a few years, renting the existing shitbox out and that would cover the loan at the current 5% but shiiiit, how long do I want to keep at this game for?

Part of me says leave it - the other part says it'll haunt me forever if I do.


First world problems eh :re:
Catweasel say hang in it Frankie the Castle.

If it show the determine,

it can the be.

Get a cousins in it,

and it can all the work together to make it the happen.
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Frank Castle
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Business As Usual

zaph
18 Dec 2013, 06:18 PM
Are there a lot of subdivides and building going on?
No shortage of stuff it seems
Stockland 2290 lot subdivision on the table

Yet another highrise unit dev

Another small shopping centre

CQ NRL Stadium bid gets $500,000 from govt.

The road coming into Rocky has been rebuilt several feet higher to sort the flooding issues

New Industrial Precinct underway

A study is being done on a Flood Levee

The list goes on.
I know the govt. is talking about Rocky being the center of the universe in those parts and the population is definitely increasing there, but that much?
Quote:
 
Have you done this much thought on purchase decisions in the past? It sounds like it is a step up the development ladder for you - going from turning one block into two or three houses, to turning one block into 6 town-houses, or a unit block (9+??).

Like I said, I have another project on the go now (Brisbane).
If I hadn't of started that I would be all over this one in Rocky like white on rice.
Taking both on is just a bit more than I wanted to chew at once and to be frank, I'm just not as fired up about it as I once was.
Quote:
 
It sounds like you have plenty of land banked to develop that will take a few years min to complete.

I wouldn't go as far as saying plenty - a handfull if everything fell into place right but the council isnt playing the game on zoning which means houses from other sites dont have a new home to be moved to so as that land can be freed up.
Quote:
 
Will buying it and banking it constrain your ability to complete the other projects?

It'll make things tough for us that's for sure
I was told if I went ahead I wouldn't be going overseas next year
Quote:
 
Are you a land banker or a developer?

I'm not sure if buying a site where a tenant is in place paying rent meets the definition of land banking.
But, I'd rather be neither at the moment - Mohito's and a small suckling pig with my name on it have been calling me from far away lands for a while now.

Forgive me Father for I have sinned - its been 4 mths since my last confession overseas Holiday.............
Edited by Frank Castle, 18 Dec 2013, 08:52 PM.
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Foxy
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Zero is coming...

Frank Castle
18 Dec 2013, 11:22 AM
Looking at a site that was sent to me yesterday before it was on RE.com
Apparently I was first call back but its taken me until now to do a rough due diligence due to council holdups.
Ticks all the boxes in a big way for me (shitter with tenant in place, zoned for multiple resi and units to 3 level)
No flood, no sewrage or water pipes across block, close to everything
Been waiting 5 years for this one to come up and now...NOW I am being told there are 3 other offers coming in so submit by best one.

CNTS :mad: :?: :wak: vomit
Simple, supply and demand in action.
Good luck.
Peter
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herbie
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Frank Castle
18 Dec 2013, 05:38 PM
Its fucked
I've spent all day and half the night at it and am still just as flummoxed.

If I was starting again from scratch with a clean plate I would be all over it as this is probably the best deal I have come across since 2000
But because I already have a decent sized project on the go, albeit rather slowly, I dont want to stick the neck out too far just in case.
The bank said we're good to buy it , clean up a site and build the first house on the site on a ridiculously large chunk of land and we wouldn't need to get rid of the existing house to do it.
Their would be no council contributions either, but we already have a couple of spare blocks attached to existing sites and really, this site deserves 6 or 7 two story townhouses or a 3 story unit block across the full site and I cant see that happening for a long time yet.

The easiest option is to just buy it and do nothing with it for a few years, renting the existing shitbox out and that would cover the loan at the current 5% but shiiiit, how long do I want to keep at this game for?

Part of me says leave it - the other part says it'll haunt me forever if I do.


First world problems eh :re:
You're sounding a bit like a FHB who has just spotted their dream home Frank? The danger being that you could significantly overpay???
You don't need the property per se. But you want it so bad you can taste it.
Keep the exercise mechanical/mathematical/logical maybe? Keep your emotions out of it.
You've done your homework. Time to step back from the detail and look at the big picture.
A suggestion - Ask yourself what a reasonable and sensible offer might be. Then add whatever percentage to that to cover off on the fact that you personally see the property as quite special.
If you get it you'll know you have overpaid. But by no more than you personally were prepared to overpay.
If you don't get it then you have plenty else on your plate anyway. And pretty obviously won't end up eating baked beans in your retirement simply because you did miss out on it.
Good luck with it either way.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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newjez
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I've just seen my dream house in my dream street. But I have one bathroom in bits waiting for my plumber to get some spare time, and I've just gutted the study. Over Xmas, no way I can get ready to sell. Ho him. It'll be gone in a week.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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Frank Castle
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Business As Usual

herbie
19 Dec 2013, 09:13 AM
You're sounding a bit like a FHB who has just spotted their dream home Frank? The danger being that you could significantly overpay???
You don't need the property per se. But you want it so bad you can taste it.
Keep the exercise mechanical/mathematical/logical maybe? Keep your emotions out of it.
I dont think its an overpay issue, I reckon $300k would take it and I wouldn't be surprised if it sells for the $249 ask bearing in mind that there are currently and have been recently sales of 1200m2 sites with DA's around that $300k mark.
There are also several individual small blocks cut off people back yards currently for sale for around the $100k mark

I just sent the email off saying thanks but no thanks.
In a previous post there are links to several new devs in Rocky plus there are a few more I didn't list.
My concern is at the moment, where will the people come from to fill it all and where will the jobs come to pay for it.
I have concerns in the future as I have done at some points in the past, that there will be oversupply.
Those who are financially fit and keep their powder dry will be fine.
I will be one of them.
Others will crash and burn as has happened before.

Who knows, in 3 or 5 years time I may get it or similar, cleared, DA in place for similar money ready for the next boost when or if Gina and Clive crack open Alpha.
Or I may have missed the boat and be kicking myself in the nuts at opportunity lost.

Anyway, here's the site
Posted Image
http://www.realestate.com.au/property-house-qld-berserker-115705267?rsf=emailalert-propdetails
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Timo
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Frank Castle
18 Dec 2013, 11:22 AM
Looking at a site that was sent to me yesterday before it was on RE.com
Apparently I was first call back but its taken me until now to do a rough due diligence due to council holdups.
Ticks all the boxes in a big way for me (shitter with tenant in place, zoned for multiple resi and units to 3 level)
No flood, no sewrage or water pipes across block, close to everything
Been waiting 5 years for this one to come up and now...NOW I am being told there are 3 other offers coming in so submit by best one.

CNTS :mad: :?: :wak: vomit
I would have though contemplating your own pathetic life or disfigured face would be a greater sick in mouth inducing issue for a bankrupt like you.....
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
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Foxy
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Zero is coming...

Timo
19 Dec 2013, 11:48 AM
I would have though contemplating your own pathetic life or disfigured face would be a greater sick in mouth inducing issue for a bankrupt like you.....
Timo,
Thats playing the man.
New rules state you automatically lose.
Peter
Sad to see.
:to:
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skamy
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Frank Castle
18 Dec 2013, 05:38 PM
Its fucked
I've spent all day and half the night at it and am still just as flummoxed.

If I was starting again from scratch with a clean plate I would be all over it as this is probably the best deal I have come across since 2000
But because I already have a decent sized project on the go, albeit rather slowly, I dont want to stick the neck out too far just in case.
The bank said we're good to buy it , clean up a site and build the first house on the site on a ridiculously large chunk of land and we wouldn't need to get rid of the existing house to do it.
Their would be no council contributions either, but we already have a couple of spare blocks attached to existing sites and really, this site deserves 6 or 7 two story townhouses or a 3 story unit block across the full site and I cant see that happening for a long time yet.

The easiest option is to just buy it and do nothing with it for a few years, renting the existing shitbox out and that would cover the loan at the current 5% but shiiiit, how long do I want to keep at this game for?

Part of me says leave it - the other part says it'll haunt me forever if I do.


First world problems eh :re:
Buy it Frank - you know you want to and I think QLD will only go up from here for quite some time. The days of bargain buying are disappearing but the days of great selling are fast returning :)
That is my view anyhoo - it sounds like a good project to me- I have regretted so many lost purchases and never regretted one buy.
Definition of a doom and gloomer from 1993
The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
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