All Topics / Value Adding / First time subdivider

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  • Profile photo of Brisvegas_ClintBrisvegas_Clint
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    @brisvegas_clint
    Join Date: 2010
    Post Count: 3
    November 1, 2010 - 11:55 am

    Hi everyone,

    First time poster but have been reading lots around here recently.

    I am seriously considering getting on the subdivision bandwagon which seems to be going strong in the inner south of Brisbane where I live.

    I am interested in any recommendations for subdivision companies that deal with small sub divisions – I might start with a block that can be split into 2 – 4 properties.

    Is there any rule of thumb on land + construction cost as a % of final sale prices, do you have one?

    Do you think buying a block, selling off the plan before construction begins is a good idea?

    Thanks in advance for any and all advice or comments.

    Clinton

    Profile photo of thomsonthomson
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    @thomson
    Join Date: 2010
    Post Count: 31
    November 3, 2010 - 7:21 am

    hi clint,

    I'm in a very similar position, although a little further ahead as we have bought the lot and have had a survey completed on it.  I don't have any rules as such that I've noticed, but we have done a fair amount of research and I am expecting the following:

    land bought for 280K, subdivide into 2 lots (easier for the first time although we could squeeze 3 on) for a cost of 30K, build single story houses for 150K each, and current market proces would suggest around 400K per house to sell.

    So 280+30+300 = 610K cost and would aim to sell for 2 x 400 = 800K.

    I'd suggest just doing the research to see what's possible.  Also definitley put some effort into finding a good surveyor who is experienced and willing enough to offer advice – worth their weight in gold :)

    thommo

    Profile photo of Brisvegas_ClintBrisvegas_Clint
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    @brisvegas_clint
    Join Date: 2010
    Post Count: 3
    November 3, 2010 - 7:42 am

    Thanks for the info Thommo

    Do you mind telling me who you used to do the sub division. Would you recommend them?

    Are you building town houses?

    Cheers, Clinton

    Profile photo of thomsonthomson
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    @thomson
    Join Date: 2010
    Post Count: 31
    November 3, 2010 - 7:46 am

    I'm just using a local surveyor in Victoria for the survey (he will also put the paperwork together for the application to the council), and my wife and I are managing the rest (site works etc.).  I'm not using a 'subdivision company' as such.

    We are just dividing the block into two and building single story houses.  Starting off as simply as possible :)

    thommo

    Profile photo of Brisvegas_ClintBrisvegas_Clint
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    @brisvegas_clint
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    Post Count: 3
    November 3, 2010 - 8:18 am

    Sounds good. Thanks again

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