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FAQ

Can I sell the unit as soon as I take ownership?

Yes, the unit belongs to you and you can do what you wish. As the sole owner of your property you have full control of the property and can make decisions in accordance with your preferred property strategy. 

 

Does the joint venture (JV) continue after we take ownership?

No. At the conclusion of the project the JV dissolves and individual investors are able to make decisions which suit their individual circumstances.

 

What if one of the investors can’t find the finance at the end?

The joint venture agreement specifies the action to be taken should one or more of the investors not be able to find the take out finance. They are required to sell their unit at the average of two valuations. It is initially offered to the JV partners and then placed on the open market if the other participants do not take up the offer.  Any costs incurred through this process are paid by the defaulting participant. In the end they should still make a profit, subject to market conditions, but probably will not realise the full benefits of being an Armchair Developer® due to costs incurred in an early sale.

 

How does Eos make money?

The Joint Venture (JV) employs a development manager (DM) to do all the work on their behalf.  The JV pays the DM and we, at Eos, charge the DM part of his commission.

 

Do I pay stamp duty when I take ownership?

Apart from a notional stamp duty cost (currently $20/unit) there should be no additional stamp duty payable when you take ownership of your unit at the conclusion of the project. If the investing entity changes even slightly the Office of State Revenue is likely to impose full stamp duty on the new entity. For this reason we strongly advise investors not to chnage ownership name during the proecess and to seek the counsel of their accredited advisor.

 

Does Eos invest in these developments as well?

Yes. Eos has invested in  “Armchair Developer®” units as have the Directors and their families. In time it is envisaged Eos will take more and more of the units in each development.

 

How long will it take to complete.

We have, in the past, underestimated the time to complete and so we are now suggesting a construction period of 22 months from land settlement to hand over. It may not take that long but it is best to overestimate the time and be happily surprised than disappointed at time delays.

 

Are there any other hidden costs?

No. The figures quoted in the Information Memorandum should cover all costs normally associated with property development. Having said that we do include a contingency allowance for unforeseen eventualities. The figures provided in the Information Memorandum are all inclusive and include allowance for; land purchase and land purchasing costs, architect and building costs, ongoing property ownership costs such as rates and insurance, commissions, interest on construction loan, consultancy fees and application fees etc.

 

Who is in charge?

The JV is in complete control. Whilst they contract a development manager to do the work on their behalf it is the JV that has ultimate decision making capacity. They can even terminate the services of the Development Manager if they wish.

 

Do I need to borrow money for the construction?

No. The Development Manager arranges finance on behalf of the JV. The project is completed and it is only at the end you take out a loan against the property and repay the JV your share of the construction finance.