Hi,
Can anyone provide advice/links/book suggestions regarding Development of Units/Townhouses, subdivision etc?
That is I know how to select/buy/rent a house/unit, but if I wanted to try to do something that adds additional value beyond this, leverage more of my equity and have an opportunity to invest more of my own time into such a venture how does one ramp up in such areas? The first goal from the knowledge is then knowing how to select appropriate land and crunch the number to see whether it would be a good investment or not.
Hi mixedup
Try books by Ron Forlee – "An Intelligent Guide to Australian Property Development", and "Australian Residential Property Development – A Step-by-step guide for investors".
Wake
excellent – thanks
BTW – I'm assuming texts like this wouldn't actually give indicative building costs. Any suggestions re how to get a rough handle on the cost of building units? Or is it a matter of contacting builders? At this stage I'm interesting in just having a look at how the numbers pan out if one were to consider building, understand potential gains, potential risks if there are building delays (e.g. increasing interest costs as payments are made to the builder whilst still not getting in rent etc).
Hi mixedup
Try putting a post in the developments forum asking for building costs in the area you want to build. Costs vary widely around Australia.
Cheers
K
Hi Mixedup, Ron Forlee books are a great starting point.
In regards to building costs, you wont find them in texts. The easiest way would be to talk to builders in your area. Just ask the question.
I have built in the past at around $1000 x sqm (mythical in some areas).
Happy investing
JONCHU wrote:I have built in the past at around $1000 x sqm (mythical in some areas).Tks. BTW – This is square metres regarding the floor space of the building? So if it's two stories you effectively you would have 2 x FootprintOnLand x $1000/sqm?
mixedup,
Try here http://www.businessmall.com.au/store/listCategoriesAndProducts.shop?idCategory=11
The Business Mall.
This is a free comprehensive development feasibility calculator that might help you with getting familiar with the array of variables associated with a development transaction.
http://www.jaffasoft.com/developer/Developers_Calculator.html
Thanks – I picked up "Australian Residential Property Development – A Step-by-step guide for investors" today and have been going through it. Also have been reviewing the online Brisbane Council Planning material too.
What's missing so far is some concrete suggestions re identifying an appropriate piece of land. Can anyone provide some tips on this front please (for finding land to build a couple of units in a Low-medium Density Residential area in Brisbane/Ipswich)? For example am I close to the mark re my ideas listed below?
(a) look for advertised land that satisfies the zoning criteria – I'm not sure (and I'll start trying) to what extent such land is usually snapped up by investors in this situation – is it unusual to find appropriate land via this approach?
(b) look for land close to train stations / transport for which there may not yet be many units yet, then approach the council to determine likelyhood of them approach construction on units – i.e. takes more effort
(c) look for cheap houses in an appropriate area that could be removed (but then whether this would typically turn out to be viable?)
(d) is there a property investment company / advisor who would assist here who wouldn't charge an arm and a leg? Or to maintain the best profit is it best to take the searching on-board oneself? (assuming you the time / inclination to have to ramp up)
I bought a block of land last year with the intention of building a duplex. There is a fribro dwelling on the land which is rented after some minor renovations. I have not read any of those books (thanks for the recomendation) nor did I know about this forum when I made the decission to buy. Me and hubby checked with the council, their requirements on dual occuapancy and bought a piece of land that fits.
However, by looking at the land we could not decied if it was sloping towards the street or otherwise (for storm water purposes) which needed a contour survey which we did only after purchase. In ourcase we were lucky it was sloping towards the street, if not it would have been a case of asking for an easement from the neighbour. This is to do with our council regulations.
I am in your situation too. Not knowing how much a duplex would cost. But we had an idea as to approximately how much it would be. Looks like it will cost $500,000. Is this too much?
Is it a good idea to go with a project builder? They have quoted me with a sight cost of $50,000. I think this is far too much.
By the way this is going to be in the Parrmatta council of Syndey. Now I am wondering if we could subdevide the land and build two houses next to each other without a common wall. I have not checked with the council the possibility for this. I have heard that duplexed are not that much in demand. I appreciate if anyone could advice me.
Thanks for recomending the books, I sure will get my hands on them.
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