Unit groups are a well performing structured investment vehicle.

Are you interested in making an off-market investment in one the best performing residential property sectors?

Direct wholesale purchasing of single owner, one title unit groups / blocks of flats / blocks of units is a sure way to make a successful entry or upgrade to any residential property portfolio.

Consider the benefits.

• In “one line” single title purchase…true wholesale buying. Direct Negotiations systems have been developed and continually improved over many years. We are in direct contact with the majority of current owners of this investment category in South Australia.

• Body Corporate Control…being the holder of this type of property allows you to set the by laws to suit
 – enabling you to maximize yields through configuration.

• Divest as required and at / in best market conditions for optimum return. These groups are rare and desireable to sophisticated investors / self managed Super groups.

• Purchase below replacement. The ability to purchase a whole group and rejuvenate the site at a lower entry level than that of acquiring a site and developing .

• Purchase sites that exceed current development limitations. Not only can you renovate / update existing built form, but you can expediate the process, as there are less restrictions and red tape if the original footprint is not altered.
  – lower holding costs, maximize yields.

• Lower management fees….wholesale appointment

• Increase gross floor areas and increase rental yields (STCC). Certain structures are conducive to extension to utilize potential highest and best use of the allotment.

• Renovate and increase rental yields

• Develop and divest on individual titles. Direct negotiations has strategic alliances with specialists who have the knowledge and expertise to handle regulations and the physical work that will achieve considerable value added equity to unit groups.

• Access greater Lend Value Ratios due to site usage Existing Built Form.

• 10 km radius Adelaide CBD. Direct Negotiations has access to unit groups throughout South Australia. We conduct independent due diligence and feasibility on all sites. Our team specifically targets traditional growth areas. Our research also reveals sites which are located on areas with pending policy change in the Greater Adelaide 30 year Plan. Owners benefit from additional equity by strategically holding in areas earmarked for future policy change.

• Low vacancy rates and firm/steady capital growth

• Key Growth and transit corridors

• Cosmetic upgrades to increase yields

• Amortize renovation costs with bulk buyer methods


If you are interested in further information on this type of investment, please leave your details HERE.

Currently Direct Negotiations has access to several sites, in key locations and original condition.

Direct negotiations has the opportunity to acquire two separate sites (blocks of units) that have been strata titled, currently being rejuvenated ( handover available shortly).

If you have interest in a fully updated, renovated, low maintenance, high yield /depreciation block of units in key transit corridors and proven capital growth  areas,  please contact HERE.

If you are looking for a well performing residential or commercial investment property, an addition to your existing property portfolio or a home to live in, we guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ or call the team on +61 (0)8 84631997

International demand in South Australian property

 Previously, South Australia was largely overlooked by international investors in favour of largely established East Coast capital city real estate markets. There are now particular requests for Adelaide blue chip properties in addition to a new class of real estate investor.

 South Australian property prices formerly depended on the means of local residents and government. The location is now on the map and is being targeted by interstate, international and local investors who realise the potential that is loaded into Adelaide housing. Cash is being injected by different economies, which in turn leads to consumer confidence in the location therefore additional government considerations.

 Factors include unprecedented federal and state government input into infrastructure. Billions of dollars are being spent in order to meet the increased demand for property required by a burgeoning Adelaide population which is driven by a number of factors. South Australia has, in recent years developed world class medical infrastructure based on technology and unprecedented highly skilled immigrants. Education, defence, and I.T. along with sustainable Mining for several lifetimes - South Australia’s Monopoly of particular (rare Earth) resources.

 Adelaide property is largely undervalued, compared with other major capital cities, while offering new opportunities that may have been previously unviable without the technology available today.


 Many traditionally overlooked suburbs have been gentrified with massive government funding and offer excellent redevelopment opportunity and capital gain due to the “ripple effect” of surrounding suburbs.

 The recent global financial crisis had very little impact on property prices in Adelaide, opposing trends worldwide, as pricing, in my opinion was not required to be recalibrated and showed massive potential as projects were completed, underway with many more announced and will be followed through on time and on budget in the coming years. The master plan for Adelaide notes a substantial increase in population, and significant infrastructure being put in place to support it. Transport Oriented Development, requires the roads and facilities including shopping centres and amenities to be in place before residential housing is planned for a new area, unlike Sydney, for instance where there are vast numbers of residents commuting long distances, for years – waiting for a proposed train line to be built.

 Recently, Ben Ottewill and Bo Lee travelled to Japan and China to meet purchasing executives from several large companies in response to large amount of inquiry for property acquisition services for remote investors of South Australian property. The Direct Negotiations website and networks are currently being  rebuilt  in order to process the increased international demand.

 UK, Europe, South Africa, US, UAE are emerging investor markets , but the strongest demand is coming from currently performing economies. Since 2001, we have seen different trends in investing, but not as strong as the current number of international cash buyers that are presenting themselves.

 Currently, the growth of residential apartments in major Chinese capital cities has increased by 50%, which makes investors nervous to expand their local portfolios. There is a requirement for quality residential property investment in markets which show fundamentals for potential for sustainable capital growth.

A (translated ) quote from Bo Lee, Direct Negotiations Adelaide based Chinese consultant, in an email received from China this morning “Over the course of our meeting, the acquisition agency expressed a trend in particular interest of Adelaide properties from their clients in Shanghai. Along with remote investors, a large percentage of  buyers are China based parents with children studying in Adelaide.”


If you are looking for a well performing residential or commercial investment property, an addition to your existing property portfolio or a home to live in, we guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au// or call the team on +61 (0)8 84631997

Australia is one of the most desirable places to live in the world... so why shouldn't the prices be high?

Here we go.... So in 2005, prices were 50% above, in 2010, they need to fall 30%, but this is cushioned. So it could be 10 or 20%, basically where we were 2 or 3 years ago...or possibly in line with demand. The only way house prices can fall dramatically in Australia, is if our economy declines at a very destructive rate, unemployment at 12-15%, banks start to wobble, and basically a whole destruction of our lifestyle, which nobody will be able to afford to buy commodities/property anyway. To all the people who keep drumming the "Bring it on" "About time", consider this for one minute, yes you might get your house at a reduced price, but you will be out of a job, your bank will probably have gone broke - operating on a Government lifeline, your super balance will be about 30% of what it is now, and our country will be completely devastated and a terrible place to live. Don't wish for a 40-50% price reduction, if you don't fully understand the consequences.

In a similar position to most capital driven western economies... during the last 20 years, Australia has seen spectacular demand for property investment for a variety of reasons, widening the gap between the wealthier and poorer members of society. While some of the latter are still fighting the crowds to purchase their initial residence, the other end of the street are sitting on two rental properties purchased strategically by utilizing available resources and data. The best way for an income earner to get ahead now is to make use of the resources at hand, or be very, very lucky. As previously mentioned, you shouldn’t depend on luck - so there's the rub.

If you are looking for a well performing residential or commercial investment property, an addition to your existing property portfolio or a home to live in, we guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ or call the team on +61 (0)8 84631997

Stimulus Package

Three contractors are bidding to fix a broken fence in Yarralumla.
One is from Canberra, another from Melbourne, and the third one
is from Perth.

All three go with a government official to examine the fence.

The Canberra contractor takes out a tape measure and does some
measuring, then works out some figures with a pencil. "Well", he
says, "I figure the job will run to about $900: $400 for materials,
$400 for my crew and $100 profit for me".

The Melbourne contractor also does some measuring and figuring,
then says "I can do this job for $700: $300 for materials, $300 for
my crew and $100 profit for me".

The Perth contractor doesn't measure or figure, but leans over to the
government official and whispers "$2,700".

The government official, incredulous, says "You didn't even measure
like the other guys! How did you come up with such a high figure?”

The Perth contractor whispers back "$1,000 for me, $1,000 for you,
and we hire the bloke from Melbourne to fix the fence".

"Done!" replies the government official.
And that, my friends, is how the new stimulus plan is working...

If you are looking for a well performing residential or commercial investment property, an addition to your existing property portfolio or a home to live in, we guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ or call the team on +61 (0)8 84631997

Australia - the lucky country.

The randomness of luck (or lack of it) is something worth contemplating. I'm not talking about luck with the horses or on the dogs — that's insignificant in the scheme of things.

Constitutional luck, that is, luck with factors that cannot be changed. Place of birth and genetic constitution.

The physical and environmental stimuli that surround you and your access to food, clean water and healthcare, all of which combined have a huge impact on your quality of life. This kind of luck profoundly affects you and directs your passage in the world.

If you're reading this now you're doing well (I would even say you're extremely lucky). In a pool of an estimated 6 billion people (and growing by the second) your luck is almost miraculous, considering only 26 percent of people have access to the Internet, half of the world's population exists on less than $2 a day and there's only an 18 percent chance of being born in an industrialised country. Let's just say you got a VIP ticket for this ride.

But often the clincher is the luck that comes with being born into a family that owns property. This is particularly so considering intergenerational passing of wealth is set to hit record levels in Australia, as Bankwest reported recently.

According to Bankwest's report Inherited Housing Report 2010, the elderly and baby boomers own nearly half of the nation's total housing stock of $3.5 trillion.

Bankwest Retail CEO Vittoria Shortt said the Inherited Housing Wealth Report was based on ABS Census data and life expectancy figures and showed that $407 billion worth of housing assets is projected to be inherited by Australians over the next 15 years.

"One in 10 homes owned by households will potentially be given away by 2025, which represents an unprecedented baton change in intergenerational wealth, the likes of which we have never seen before," Shortt said in an recent media release.

If nothing else, these figures help to explain the curious ability of many young people to purchase $1 million homes. But what about the rest of us?

Given the chances outlined above we're all outrageously lucky to be here, in an industrialised country with access to the food, water, healthcare and the Internet. But if you stand to inherit a home by 2025 you're 10 times luckier than the average Australian citizen.

With Australia's projected population growth and a steady increase in housing prices many families are hoping to inherit wealth. Will you? Will you pass it on? Share your thoughts below.


If you are looking for a well performing residential or commercial investment property, an addition to your existing property portfolio or a home to live in, we guarantee to save you money on your next real estate purchase. Go to Direct Negotiations or call the team on +61 (0)8 84631997

Australian economy - world leader

Australians have never had it so good, to coin a phrase.
A big call, but Commonwealth Securities chief economist Craig James says a new measurement tool launched on Monday shows that Australians are indeed living in prosperous times.
The CommSec National Performance Gauge stood at a record high at the end of 2009, rising four per cent over the past year when other countries were trying to cope with global financial crisis.
While the recent Australian Bureau of Statistics national accounts data showed Australia outperformed the rest of the world in 2009/2010, the data indicates how the broader economy fared rather than individuals.
"The CommSec National Performance Gauge attempts to fill the void by focusing on issues that matter to ordinary Aussies," Mr James said when launching the gauge.
"That is, financial decisions like buying a car or house, filling up the car with petrol, the state of the job market, wages and confidence levels."
The CommSec gauge has seven measures:
- income per head
- retailing spending per head
- unemployment
- consumer confidence
- number of weeks to buy a car
- number of weeks to pay the average monthly mortgage repayment
- litres of petrol that can be purchased on the average wage.


The starting point for the gauge is 1987.
Over the past decade, the CommSec gauge has increased by just over 10 per cent.
"While the standard of living of ordinary Australians has lifted over time, those who have done best have been those holding assets such as shares and houses," Mr James said.
Adding shares and house prices to the index - the CommSec National Performance Gauge Plus - this shows a 42 per cent jump over the past 10 years.
The gauge shows that car affordability is the strongest in 35 years, taking a person on the average wage just under 30 weeks to buy a new Australian built sedan, down from 36 weeks five years ago.
You can also buy just over 1,000 litres of petrol per week on the average wage, a gain of seven per cent over the same five-year period.
During that time, income per head has increased by six per cent and retail spending has risen seven per cent.
And while there are gripes about rising home lending rates, the gauge shows it takes a worker on the average wage 1.58 weeks to make the monthly repayment on an average mortgage, similar to levels of five years ago.

Among the states and territories, the ACT tops the gauge's ranking, followed by Western Australia and Tasmania.
The country's two most populous states, NSW and Victoria, came seventh and eighth, respectively.
Mr James admits it is difficult to accurately compare different periods of time.
"Many, perhaps fondly, remember the simpler times of the 1950s and 1960s. And some people would prefer that interest rates were lower or perhaps jobs were more plentiful," he said.
"But in terms of general economic well-being, you would be hard pressed to fault the current times."

If you are looking for a well performing residential or commercial investment property, an addition to your existing property portfolio or a home to live in, we guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ or call the team on +61 (0)8 84631997