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Good luck!! Try and soak up as much info as you can from many sources. I studied for a couple of years gathering as much info as I could before I did my first deal. It has really helped.
We have subdivided with a house on. The process down here takes about 7 months from go to wo but I have had council approval within a few months. The councils vary greatly so you need to check the rules of the council in your area. It costs about 20-25k depending on sewer ect down here. Its not been a difficult process at all from our experience.
Our first deal was with another couple in a partnership. We purchased a house on a corner block, spruced up the house on front, subdivided and built on back. The project took about 14months and we made a before tax profit of 110k. We then bought a house on a large block, knocked it down, subdivided and sold the blocks, making a before tax profit of 87k. We then renovated a house spending 12k that was revalued at 70k more than we paid for it which we have kept and tennanted. It will be a great development site down the track. The house we are selling we were going to knock down and build 2 courtyard homes but by selling now we will still make a capital gain of 60k which even after tax will pay for our current project. Our current house is on a corner block. We have done a basic cosmetic reno and plan to subdivide and sell block.
Whilst we have acheived good results so far it must be said that we purchased all these deals in 2006 and 2007 and there was a bit of a boom after that. I think it would have been near impossible not to make a decent profit in that period. Now is a lot tougher. I think you need to do lots of research, have finances in good order and be realistic about end prices.
Still if it was easy I would be bored of it by now. I'm really enjoying the ride.
Good luck with your project!
Kind regards,Mary
Hi Matt,
We are currently working on our 3rd deal so fairly new to it all.
We do small residential developments ie subdivs and cosmetic renos down south. We have found it to work well as we know the area and find it convenient to do deals close to home with our family commitments.
The greatest challenge in this current climate is financing projects so we have had to change the game plan a bit. We had a site we were going to develop next year but we are now selling it to reduce the borrowing costs on this current project. We are happy to do it in order to move forward and improve the "sleep at night factor" as I call it.
Our goal is to quit our day jobs and do this full time within the next 5 years.
Kind regards,Mary
Thanks guys. Sounds as if the best option is to leave as is. Thanks for your input.
BTW I should clarify it is thin panels that i suspect is a type of laminate to give a wood look and is not real timber. Also is on all interior walls. Thanks
Thanks Builderbob. That link was most helpful. The second coat looks much better.
kind regards, Mary
Yes he did use a roller. Will get a flat pad. Thanks very much for your advise.
Thanks so much for your advice. I'm heading there now. It's only 24hrs so we will try another coat but go over quicker this time.
Have a great weekend!
Yes we are in the same position. We have signed building contracts so need to move. Have had a couple of demo quotes but still looking as they are around 13k mark. Have heard you need to give demo guys about 2 months notice as they are busy so will finalise soon. It is a juggling act!! Good luck!!
Kind regards,Mary
Hi Lisa!
Well done! Did you shop around for demolition prices? I too am starting my first one and would love to know who you are using to bowl house over as I am building nearby.
Cheers,Mary
Thanks trakka and milly for your encouragement. Property investing isn't for the faint hearted thats for sure. But as a wise man once said "problem + solution = profit ". I'm already doing the sums so onwards and upwards.
I have just made my biggest mistake. I live and invest in Adelaide and we are currently in a very hot market. After missing out on numerous properties over the last 12 months, we made a cash offer subject to nothing on a tired little house with development potential. we had a fabulous plan to do a basic makeover and rent it out for a couple of years then get it revalued, pull out the equity and develop it into two duplex/courtyard homes. Discovered today a week after settlement that it is riddled with termites an is uninhabitable. To fix would be over capitalising as the house is not worth it. Very dumb thing to do I know. I dont think that there is anything anyone could say to make me feel any worse at this point in time. Still, I am going to learn big time from this and having purchased the prop for pretty much land value feel confident I can salvage the situation by clearing the site and subdividing. I will NEVER purchase anything without a building inspection!!!!!!!!!!!!
