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The additional value created would depend on how much profit there is left in building it. If your design is particularly innovative, or has got approval at much higher density than the zoning would normally have allowed, the extra value should be recognised in the sale price.
I know of a house being sold with a DA in place for 5 townhouses at $950k. I just purchased a slightly smaller block (809 vs 1100 sqm) with a house on it for $369k, which has the same zoning and I will also get 5 townhouses on the block. This will cost approx $25-$30k for the DA and should add around $3-$400k in value, while still leaving approx $4-$500k in the deal for the developer. We are intending to do the build ourselves though and capture all of this value.
Rental fees sound about right . Go Gecko offer 9% flat rate, no matter what they need to do on your behalf there are no additional fees.
I have a fully furnished house there and it definitely adds to the rental.
I just got a quote for my planned 4 bed, 3 bath, 2 living townhouses at $950-$1,000 per week each, in todays market, fully furnished. Talk with Elders, they gave me that quote, so must have clients lined up for fully furnished houses.
You could invest in Tax Liens in USA for 16% to 36% yield and retire.
I am going.
I was hoping it would have been for development feasability. Is this possible?
I’m seeing Robert Kiyosaki speaking in Sydney next week (along with Donald Trump), should be interesting.
The major cities are hard markets to sell into at the moment. Have you considered moving somewhere like Gladstone where there is a alot of construction work happening that would pay very well at the start of your career. Builders can earn $100k there.
Its also a great place to see what is possible for a small development that is very profitable. For example, I am doing a duplex on the back of an existing house, and expect to make $400k+ on it there. If the profit margin is large enough, it costs very little of your own money as you can finance based on the sale value rather than construction cost.
Where are you based?
I didn’t see it fitting with my development strategy, which is currently using my funds, but it did give me some interesting ideas, trying to cross the two concepts.
Confirmation of the new $4 billion Steel Plant Project, starting 2012.
2,000 construction workers and 1,800 staff once operational.
Gladstone really is becoming a super-infrastructure town.
http://www.gladstoneobserver.com.au/…ess-gladstone/
I attended their 2 hour introductory session and was very impressed with their openness to discuss what they did with me after their presentation. No pressure to buy, seem very genuine and would be worthwhile to learn what they have picked up over the past 20 years.
Alternatively you could list it here http://www.millarslist.com/
It is a site specifically for land for sale to developers at minimal fees.The most likely strategy for someone in your position would be the siacci system, you don’t need to go to the banks for finance to do it.
Portfolio PI wrote:mattnz wrote:Sell Gold Coast and buy 2 in Dysart.Even though the Gold Coast airport is only months away from signing a contract to have flights to all the mining centres for fly in fly out workers?
Why buy two in Dysart Matt?
Hi Josh,
Sorry, just saw this post. If they do fly in fly out, where do the workers stay during the working week? Houses in Dysart, or are they setting up additional worker camps?
jamesw82 wrote:na ill keep the coast one for a bit longer, its doing alright. So josh u prefer emerald more so then Dysart? A safer bet maybe. Im looking for a rental yield of around 7% not getting to fussy haha. Im very new to this game, i just want early retirement,am currently living and working in Mt Isa and am very over it and want to get back to the coast haha. Real estate is my get out card.Ok, seems Dysart is not for you then, rental yields are currently 14%, rather than your intended 7%.
There are only 2 markets in Australia that I would currently recommend, Dysart for the next 1-2 years for quick capital growth and Gladstone for the next 3-4 years also for capital growth.
Sell Gold Coast and buy 2 in Dysart.
Hi Anita,
I sent you a private message in your inbox to discuss further.
Cheers,
MattI have the best priced property on the market at the moment in the suburb. It should sell soon hopefully.
I’m currently trying to sell in the Western suburbs of Melbourne. In theory my property has increased around $135k in the 2 years I have held it, but it is very hard to find a buyer at this price, given how much is on the market.
I agree with your observations FWord.
I see there is a changing view on housing supply in Australia, with well known and respected industry analysts now advising they see Australia as Oversupplied with housing.
http://www.theaustralian.com.au/business/property/chronic-housing-shortage-in-australia-is-a-myth/story-fn9656lz-1226089083998This has always been a key argument from property bulls of why the Australian market couldn’t collapse, unlike every other major housing market in the world.
Also interestingly, one of the epicentres of the housing market collapse, California had industry lobby groups claiming that there was a housing shortage, causing their skyrocketing house prices in 2006. Unfortunately, as in Australia it was simply a market full of speculators, fuelled with easy credit.
http://www.toacorn.com/news/2006-02-09/Front_page/005.html
