Housing Choices
Our company Housing Affordability Tasmania Pty Ltd (see www.hat.house) was originally going to build 62 units on 13 titles but we had to get a loan to build a road.
It has proven impossible to get a loan for the road, as financial institutions will not provide loans for infrastructure.
We had a meeting earlier in the year with you and William to talk about my Housing Affordability Trust to solve the Housing and Rental Crisis in Australia as well as discuss my project in Geeveston,
We still cannot not get a loan to build the road. We now had $100,000 in the bank, good income from leases and would have no problems servicing a loan. The loan would be repaid by selling 2 or 3 blocks of land after the road was built.
Another problem popped up . All blocks if land have individual titles but the banks would not take them as security unless we built the road first.
What a mess !
The company has $100,000 in the bank as well as 7 blocks of land with a council valuation of $50,000 each ( $350,000) and an acre of land where I could build 32 units with a council valuation of $170,000 ( but a 20% risk and hypothetical development valuation of $850,000)
My only interest in the project is to provide Affordable Rental Accommodation and create income for my grand children in a discretionary Trust .
I have no interest in assets or income for myself as it will only affect my pension. I have re-arranged my affairs so that I have a full pension but $66,000 of income which is more than enough
We still need co-operation with a Community Housing Provider to get access to the NHIF (National Housing Infrastructure Facility.
NHIF would be ideal organization to provide funds to build the road if a Community Housing Provider would be associated with a project.
We are now offering to donate an acreage block zoned Village on which 32 houses can be built .
Estimated value $850,000
We can build 8 x 2 Bedroom and 24 x 1 Bedroom units in Geeveston
Properties are silver level Livable Housing
Specifically targeting Pensioners
1 Bedroom designed for Single pensioner
2 Bedroom designed for married pensioner
Highset 2 x 1 Bedroom . Bottom unit livable Design. Top unit is the same design apart from access which is not Livable Design but can be used for carers or younger pensioners
Cost of 2 Bedroom $240,000 60m2 or $4,000 /m2
Cost of Highset $240,000 2 x 30m2 or $4,000 /m2
Note land is zoned village which is much more beneficial than residential
Area is 4102.2 m2 which when zoned residential would accommodate 13 dwellings but zoned Village will accommodate 32 units.
I realise that it is very difficult for Community Housing Providers to build 1 Bedroom units , yet 60% on the Homes Australia waiting list wants 1 Bedroom unit.
This an ideal site for 1 Bedroom units
Community Housing Providers should not build or buy or build properties . They do not pay tax and cannot use tax deductibility of interest and depreciation . The difference between Housing Choices buying a $240,000 house and a group of pilots and doctors buying the house is $95 per week.
There is enough room for the group of investors as well as Housing Choices to share this difference. My proposal is that we build the buildings and lease them to you , reducing the rent by the full CRA for the Single Unit.
The model is the Land Lease Community Model.
You or we own the land but we own the building and lease the buildings to you on a 99 year lease.
We are quite prepared to transfer the title to you to make your balance sheet look better, but the land as well as the building must be used as security for a loan. The loans must be in our name.
1 Bedroom unit Rent
Our normal rent is 30% of the single pension + Commonwealth Rent Assistance (CRA).
30% of $1096.70FN $329.01FN $164.51/week
CRA $184.80
Total $530.81FN $256.91/week
Less 100% CRA $ 184.80
Leased to Housing Choices $329.01FN $164.51/week
2 Bedroom Unit
Our normal rent is 30% of the Married Pension + CRA
30% of $1,396.20 $418.86FN
CRA $174.00
Total $592.86FN $296.43/week
We could subsidise 1 Bedroom units because with our Highset design we can build 2 x 1 Bedroom units instead of 1 x 2 Bedroom unit.
It is not possible to subsidise 2 Bedroom units , so we can only offer the 2 Bedroom units for lease at our normal rate of $296.43 per week
There are 12 Highset buildings of 2x 1 Bedroom units. The top unit is the same as the bottom unit but obviously has no wheelchair access. It may be better if we only lease the bottom units to you .
In that case you would have 12 x 1 Bedroom and 8 x 2 Bedroom
We still need Housing Choices to assist us to create a loan from NHIF to construct the road. The loan can be in our name . We will pay the interest and fully repay the loan in 1 year.
Summary:
Housing Choice to help arranging a loan for us with NHIF for $320,000 to build a road. Loan is in our name and Interest paid by us. Loan fully repaid in 1 year
Land @ $875,000 is donated to you
We borrow the money and construct 32 units ( 8 x 2Bedroom and 24 x 1 Bedroom)
We will lease to you:
12 x 1 Bedroom units @ $164.51/week
8 x 2 Bedroom units @ $296.43/week
20 units for an average of $217.28/week
Please give me a call on 0412 324 808 to discuss.
Regards,
Peter Griep
Hi,
I have attached a summary of my experience.
I have experience in multi million dollar projects.
30 years ago I had the sole agency of 4 Holiday resorts , Gold Coast, Tangalooma , Fraser Island and Hamilton which I marketed for $20m to international airlines and holiday operator. I financed Shopping Centres, Pubs, Holiday Resorts and large self storage complexes and personally ran a 10M Currency Management Fund
I was a chairman of 6 Bodies Corporate and developed a 82 Town House and 102 unit retirement village.
No longer interested In making rich people richer I specialized as an investment adviser maximizing pensions for retirees. My hobby then and now is beating Centrelink.
I am very much interested in the not-for-profit world and my strategies are always out of left field , innovative and unique.
I have a perfect system to solve the Housing and Rental Crisis with my Housing Affordability Trust (HAT) at no cost to the Government at all and have written to every Minister and Senator , Tasmanian and Federal Treasury. Documentation is 15 pages long.
I wrote to Jim Chalmers before the last election setting out HAT and suggested that to improve his election chances he should appoint a Housing Minister to show that he was serious about solving the Crisis.
Whether he adopted my suggestion of a Housing Minister or not I do not know because he did not even acknowledge the receipt of my email. All correspondence probably goes straight into junk mail.
However, after the election Julie Collins was appointed as Housing Minister.
I also live in her electorate
I have written 3 times to her and 3 times I have suggested to have a 5 minute meeting with her rather than wasting her time going through 15 pages of complicated material
No action whatsoever .
The only solution is shaming the government into action and Julie Collins will feature prominently in this shaming. Shortly I will feature on my website 39 articles on Finance for Pensioners and How to solve the Housing and Rental crises. I will no longer publish any material on HAT as my biggest fear is that a Superannuation Fund, Institutional Investor or a Price Waterhouse will get hold of my innovative Housing Affordability Trust which is a not -for-profit Trust and skim of the profits for their advantage rather than the investors in HAT.
I can explain HAT in 5 minutes over the phone so if you are interested I am only too happy to do so.
On my website I will publish a number of strategies for Community Housing Providers and am absolutely sure that I can improve their effectiveness and profits
If you would allow me to get details of your modus operandi and aims and objectives of your organization I will improve on it.