Legacy Partners may be a young firm, but Principal Matthew Hayder proved to us that to be successful abroad, being multi-faceted and open minded is vital. He and a prior colleague of his from Macquire Bank in Sydney partnered up under 2 years ago to form this Development/Consultancy firm. Matt is a Texan with a degree from Princeton and strong understanding of real estate across the world. He was kind enough to entertain our group in his new offices boardroom to discuss real estate in Australia.
He touched in detail about development in Australia vs the US (acquisitions/approval process, design, valuations, taxation, & sustainability).
A few interesting points I took away from our meeting are:
-Residential leasing is frowned upon in and essentially non existent in Australia.
-95% of properties are bought in an "auction" like setting, leaving virtually no time for the due diligence process (agent benefit, as prices get driven up!)
-Raw land and Institutional grade properties are the only types that usually get dealt through "private treaty," or traditional sales.
-MINIMUM of 3 years for a variance to be granted, as the Councils have much of the power to make or break deals...wine and dine em' boys!
-Capital Gains tax is determined by taking 50% of your nominal tax rate...interesting...but need to think further and apply to scenarios.
Matthew briefly touched base on the sustainable aspects of Australian development, talking about BASIX & NABERS. Overall, I think getting insight into how real estate happen here was more than enough...cheers to him for that!
G'day mates!
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