Thanks Breece and Christian ,

As far as I can see there is no heritage overlay and it is a Z3 according to the town planning website. There are amazingly no trees either , there is an easement that runs at the very back at the property but this could be worked around.
 
The front property is in very good condition and would just need a new kitchen. 

I will be having a look around for a town planner and as for the others I do not have any contacts for a  Surveyor or draftsman/architect.

I am very very new to this game and I am trying to learn as I go along, plus doing a course in investing.

It is so overwhelming I am so out of my depth.

Simone

You are wonderful Tracey, thank you. I will have a read

mmmm, Yes It does add alot of risk doesn't it.
I can not thank you enough for your help, this alone has tought me what to look for.

I think Hubby is being very conservative as he says as I can not see it taking 2 years but you never know do you.

Our plan was to sell off the plan but again you are not going to cash up until it built in the end are you .

Sometimes it just helps to have those that do already have a look at it.

I think our friend had our best interests at heart but may have been a little to close to it , if you know what I mean .

Thanks again

Simone

I have been asked to keep the location on the downlow for my friend who is the agent. He only has a 2 day option to sell it as the Vendor has an arrangement with another agent and he is afraid of getting issue with them, all a bit messy.

Its in the outer east of Victoria, a well located suburb with growth potental and near train stations and schools, shops are within walking distance

Thanks Heaps Matt and Richard,

Do you think you could explain how you come to the figures you need ??

Just so I can get me head round it all, I had a gut feel this was too big for our first go at it to begin with without having more cash behind us. I was also thinking about the demo costs involved.. 

I think we are better to start from scratch, subdivide a smaller block and build on back to get more cash behind us first. 

Simone  

LOL, Its too late at night for me to fully understand what you just said.

Although I would not like to admit it I think I was emotionally involved on the idea of the development not so much the actual financial situation "right now".

I have not read Steves Book yet although I have had it for quite some time, I am planning on making it a priority .

I met Steve when I was having my first baby , his wife and I were in Baby classes together.

Yes we plan on doing just that cashing out on our other IP , paying off our mortgage and setting ourselves up for some more options in the near future. ..

I will check out your site , thanks

Simone

Just got a call from the agent and they have dropped the price again down from $390.000 to $367,000 now $359,500. 

The Vendor has not purchased yet and it seems like he wants to sell. 

We would need to renovate the property as mentioned in my previous post, would you get an inspection done ? The gutters would need replacing and the roof restored (a guess) , there are also lots of trees around the property that I would want to remove. 

I really would nto to pay more than $350,000 for it, I spoke to another agent in the area and she said that you would not be able to get another 4 bedroom home in the area for under $400,000 although there is another newer property up the road at around $370,000  

Its a 70's brick veneer and in your opinion if the median price for the area is between 400-420 then what else shoudl I be looking for, the area is relatively close to schools , shops transport , it is however on a main road with lovely views.

I have been told to check out the area and property prices, I have done that ,so what am I missing, what am I not thinking about ? 

It would still be a buy and hold for quite some time , renovations to the point of making it livable and comfortable but not through the roof until the time comes to either fully renovate and sell or knock down and devewlop with next door, The rent would only be around $350 pw.

Any input would be greatly appreciated.

Thanks Simone
 

Thanks Derek,

Yes I have considered that mum may not move on until she is either in a nursing home or falls off her perch( God forbid ) so I know this will be a very long term investment, I suppose I like the value of being able to have eyes and ears about the place so to speak and that the propety itself is a low price for the area.

I dont think it is a high growth area considering that the land values dont rise terribly much but just looking at the records value of a simialr 4 bedroom property this year Median price is around $400,000 and last year at around $ 468,000 if he is looking for around 390,000 ( we would hope to get it lower of course) then surely the value would be in it when the place gets fixed up a bit and we hold on to it.

I suppose it is all if , buts and maybes at the moment as there are alot of questions as to the following:

1. What the town planner has to say.
2. What the actual land size works out to be.
3. What kind of work needs done.

I will do some more homework on that front and see what that brings.

We have been looking for somewhere and I just figured if the sums are good as a stand on its own and it happens to be next door to mums and that in the future she decides to move to the country (she keeps saying she will) then all the better if we can cash in on a development later down the track .

Any other advice on what you would be looking at would be greatly appreciated, as Like you said I cant get emotionally involved and it will be just business.

Thanks Heaps to everyone