Property developer new to this forum

[JRB]

Hi all, I am new to this type of forum. I do property developments and construction in Australia.
Always looking for projects to invest in and also open up our projects to investors. Hope to learn from whats out there.
Regards

 

[realdeals]

Hi @JRB

Perhaps you could expand on what area of the market you operate and level of investment required?

 

[JRB]

Hello realdeals, I do a range of different property developments. Small to medium townhouse projects, some commercial office/warehouse developments, land subdivisions, and individual houses, but lately we have been developing retirement/lifestyle projects as there is a huge demand and the returns are far higher than normal projects because of the economies of scale and demand. In regards to investment amounts it depends on the project? We do small projects and an investor might contribute $250k and with something like a village project we might have 7-8 investors and total contribution could be $3-$4m? We get a lot of interest from migration clients as the village projects suit their pr requirements better. Some projects funds are only used for short term like six months and others 18-24 months.
All of our projects are different so if we do open one up to investors we generally customise it to suit. Hope that helps?
Regards

 

[Longterminvestor]

There would appear to be a similar trend in Australia to that in the UK - a move towards retirement/lifestyle projects as the population continues to age. Is there as much pressure on tax payer funded public services in this area in Australia as there is in the UK?

 

[JRB]

There would appear to be a similar trend in Australia to that in the UK - a move towards retirement/lifestyle projects as the population continues to age. Is there as much pressure on tax payer funded public services in this area in Australia as there is in the UK?

Hi Longterminvestor, there is a little but most of the retirement.lifestyle villages are private developers and the odd aged care facility is gov owned. Usually the gov subsidises the aged care beds in private facilities. With the actual "gated communities" like I do these are generally all private companies developing these but we find only about 6-7% of over 55's live in them. Our model is different in that we give total ownership and no exit fees whereas most village operators really on give the client a 'lease for life" and then hit them with 30-50% exit fees regardless if the property has increased or not. Very unfair model but that is why our model is in huge demand. Does this help?