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I am also new to this concept of developing and given the possibility that both demand for rental stock and therefore capital growth look set to grow, now is a great time to get involved.
I have 2 hints. Firstly, our local council seems to have a similar LEP and they suggested a very basic rule of thumb, that is divide lot size by 200 for number of 2 br and by 250 for 3 br. (then you have to work out the detail.
secondly. find a way that differentiates your properties from all the others. It may not mean that you get a higher sale price, but it could mean that you sell faster. BTW always sell off the plan at todays prices too!!!
Brett
There is nothing more grounding then a good dose of harsh reality. Fortunately I have very thick skin and a full understanding that public postings will always reveal the truth.
I did leave out alot of the key pieces of information as I was curious to see what suggestions would be made and therefore hopefully vindicate the direction and decisions that we are making.
My day job is 'Project Manager' therefore I have spent alot of my time running projects (not property) that make other people wealthy. It is now time to apply that knowledge & experience to my own wealth growth. I will be reducing my day job and increasing my investment time over the next 6 months.
Secondly, I understand that a good idea in property is only a 'good idea' if all the other planets line up.
I have constructed my own feasibility spreadsheet and have run my own figures on both projects (Duplex = $40K margin) and (Townhouses = $220K margin). We also have set criteria that must be met before we will even enter the figures into our spreadsheet (i.e. the 3 km rule. school, transport, major shops, recreation, hospital, etc) the duplex is within 1,500 m of most and the townhouse is less that 1,200 m from all) The type of property is also perfect for the demographics that already exist or are growing in their respective areas.Does the project sound better now. I am not so conceited to think that it is perfect and I also know that I still have alot to learn, but that is why I started reading Steve's books and getting involved in these forums.
BTW, your website is good and if I can get my property dev boat to float, I would like to think that we could do business together at some time.
Brett
Lunareclipse Investments P/LWe have two property development sites that we are looking at. one is just over 600 m2. it is owned by an R/E agent I know and might be prepared to let me develop it and share the profits. I think that I might also have a builder that will JV. I was wondering if this is the done thing or is what we are trying to do unusaual (we don't have our own cash to start out, but I have never let that stop me before).
The second is a 1400 m2 plus block that we are hoping to fit 4 x 3br and 2 x 2 br townhouses on is looking to be a JV between us and the land owner (they retain 1 x 2 br in lieu of payment for the land) and JV between us & the Builder (they retain 3 x 3br in lieu of payment for the materials & construction) and we get one of each that pays the consultants.
What are the costs I should be looking for and estimates (I would rather not spend money unless I knew it was going to be feasible) and what else will do we need to look into.
If these stack up and pay off (Cash or equity & +CF), we will be embarking on a program of development on a permanent basis.
As my day job is Solar Power and energy efficiency, the townhouses that we would like to build will cost only 25% to heat /cool and power as a normal townhouse and I beleive that they will sell quite well.
I am always happy to share my projects with financial investors too (wink wink)
