There is a song that I’m thinking of……..suspicious minds!

I think nowadays we are all very cynical. If the property is not worth that price and you think they are dodgy, move on. If you are interested tell them you think the property is not really worth that and you are very happy that they got that offer, meanwhile if it falls through you are happy to submit an offer at (insert low price here) and to give you a ring if that happens. Don’t engage your valuable brain sells worrying about playing a game that may or may not exist.

D

Hi,

You need to investigate both options. Get your phone and start making some calls. Call Commodore Homes and find out exactly what you get. Call the architects and find out what you get. Personally I have gone with the architect and separate builder option as it is more flexible and they were comparable on price. Now you need to go and make some phone calls, there is only so much info you can get here from people who are not even in the same state

Ask all the questions you know and you might find out some more to ask that you didn’t know. Don’t worry about looking or sounding like you are silly or you don’t know what you are doing, you just need to get started.

Here is my favorite quote at the moment and it really applies to developing,

“If we wait for the moment when everything, absolutely everything is ready, we shall never begin.” Turgenev.

Get as much information as you can and get started.

Get your sales price in the area. Get the cost of the block. Get a build cost. Get all costs for planning/DA. Take costs from sales price, if there is a good profit (at least a 20% margin) then run with it. If there is anything less that 15% don’t do it.

This project will eat up 18 mths to 24 mths of your life so getting started sooner rather than later is advisable. If the numbers work.

D

Hi Marie,

Good on you for trying to get as much info as possible. On the council website (if it is a good site) it should have a list of recent development approvals in the area, the addresses, how much they are costing and what exactly is being built. You may have to dig for this info. Then you could go for a drive and have a look. Why don’t you ring a few architects/draftsman etc and get some prices and ask if they can help you through this as well as help you crunch them numbers. You might get fobbed off by a few but you might find someone who can hand hold you through it. Good luck.

D

Well the thing about auctions is that they are not always the best way to get a high price. I think agents have started working out that by having a private sale they can inflate the price or ask the actual price and just get it. I don't think it means that people have stopped buying, they have just stopped buying at auction…….

D

Yeah, I've had the login since I enrolled. Better email them. They should have emailed you a login by now. seeya round

D

Hi MlK,

I think your figures are a little bit skinny. The building cost needs to add another $20k just to be on the safe side and the surveyor/town planning part is quite skinny, probably add another $5-10k for drawings etc just to be safe. Does your reno cost include the changes made to the front house? Have you accounted for clearing the site? Get the numbers right and you will be ok. After all calculations you should aim for minimum of 20-25% profit for a development. Keep it up try the number and remember there are plenty of deals in the sea if the numbers don't work.

let us know how you go

D

Good for you for getting in an finding something that was obviously a good deal. Maybe have a crack at the other apartment see if you can get it for a good price make sure the tenant is locked into a lease when you buy and see how you go. One of ours we bought with a tenant who isn't really into a fixed lease, meanwhile he is still there and still pays rent on time.As long as you are aware of the risks and you have strategies in place to mitigate these risks then you will do fine.

Good luck with the hunt!

D

Thanks Scott.

It's true that landlords can get a bit precious about properties! That is why carpet and tiles and a clean basic finish are great. Our landlords were still here packing the day we were supposed to move in. They ran around showing me all this stuff, how to use the tank (yep I'll figure it out) and all this other things I "needed" to know. The removal truck will be here tomorrow I'll figure it out…….!

Matter of fact they are coming today and tomorrow to clean out the second garage they have stored all their stuff in while they are overseas. So if you don't hear from me it's because I will be far, far away from the circus.

D