Mmmm, interesting answer Matthew. You’re still being paid by the Sales Agent who is paid by the seller. There seems to be a conflict there. Anyway, good luck to you!

Cheers
Garry

Hi Simone

I would be careful buying on a main road because you limit your market when re-selling – many folks will not buy on a main road. Also be careful of median prices as they only give an indication (a starting point). Medians tend to provide more information about what’s been selling rather than what a particular area’s property is worth.

Ask the Sales Agent to provide you with a report identifying recent sales in the area OR you could order an online report that will give you suburb, street and specific property data. Once you get your report(s) check out comparable properties nearby in terms of where they are and what they sold for. It’s always wise to go see those properties to gain an understanding as to how they compare to the one you’re looking at. The fact that the property you’re looking at is on a main road means it is not worth as much as comparable properties that are not (on a main road). Good luck!

Cheers
Garry

Hi MJP

Interesting question. My passion is (obviously) real estate therefore my answer is focused on property. I don’t need to speculate as to what I would do because I AM doing it…I can answer from my current ‘real-life’ situation.

We (my business partner & I) are (after several pre-DA meetings with Council), submitting a Development Application (DA) this week to Council for the construction of 4 Villas. We purchased land with and existing house and granny flat (rent is $640 per week so holding costs prior to demolition are minimal), planning to demolish the house and build the 4 Villas. We paid just over $400,000 for the property AND contributed $200,000 ourselves. We have the actual costs except for fixed price building (which we pretty much know). Return on investment is looking very good indeed.

Additionally we’re embarking on a Joint Venture with another similar property contributing another $200,000 ourselves.

Cheers
Garry

Hi Mat

This is clearly a decision between ’emotion’ and investment’. If you’re goal is to ‘invest’ you need to remove the ’emotion’ from your decision. If not then make your decision based on lifestyle. Without knowing your personal situation, I would be taking the investment option BUT that’s based on my goals!

Remember any normal (ie buy existing property and simply hold onto it), property investment should be for the longer-term.

Good luck.
Garry

Hi Kehnan92

We’re currently doing a couple of developments in Sydney’s western suburbs. Building and carpentry skills are certainly helpful BUT unnecessary. My best advice to you is not to rush things.

Firstly, as with any investment, make sure your numbers stack up. When you’re ready, start by ‘cutting your teeth’ on a small investment – maybe you could purchase something with cosmetic renovation or small development potential. Secondly (really this should be ‘Firstly’), seek out a mentor – someone who has ‘hands-on’ development experience and is willing to help you. Don’t be concerned if you need to pay your mentor…one way or another you will pay for your education – either by making costly mistakes and learning from them OR paying someone who has already made those mistakes. I can assure you the latter is far less expensive.

Cheers
Garry

Hi all

Great information… a very sincere thanks.

I am currently looking at a couple of small developments: One with DA approved for a duplex pair in Sth East Qld (I purchased the site some time ago) AND another in western suburbs of Sydney – new homes with 6 month delay on settlement of land. The idea here is to sell for short-term (approx 6 months) profit (approx $ 50,000 to $100,000) prior to having to settle on the land. We have done the feasibility and all is looking very good indeed. Obviously all depends on the market.

Cheers
Garry