I have been talking with some people who are considering subdividing their property at Daisy Hill in QLD. The subdivided portion of land will be 1012m2 (40 perches). They said they will be looking to sell the land only for somewhere between $220-$250K. Their reasoning is that the 1012m2 could be further subdivided into two lots, and that blocks this size are rare in their area.
I have been researching the area but can only seem to find information on house and unit sales, not on land alone. I have asked some agents about it but they say they would find it difficult to estimate the value until the subdivision in completed.
I have the capital to build a house on the land and either sell it straight away or rent it out. But I’m just not sure if their price of $220-$250K on the land is a great deal or whether it is over valued? I’m really stuck for where to go from here…can anyone offer any advice?[8]
Ask the agents what a finished house will fetch on the market. Show them an actual spec home.
They should then be able to give you an indication of the value of the finished product…work backwards to see if it is worth taking it on.
Hope this helps.
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I have found some other properties being subdivided in Daisy Hill – but unfortunately so has the person I wanted to buy from. One subdivision (aprox 800m2) was going for $230K and the prices went up from there. So, it seems the $220-$250 mark for the 1012m2 wouls have been good value.
Now, the seller has offered to give up more of his land so that the portion he is selling is now 48 perches (approx 1214m2). He is emphasising the fact that this could be further subdivided into 2 blocks of 24 perches (approx 607m2 each). But the price for the 48 perches is now $380K. The seller is basing his figures on the actual sales just down the road (eg, 807m2 for $230K) so it is hard to argue him down from $380K because he argues that he could sell each one for $230K each for a total of $460K.
I’m not sure what to do now. I could buy the land. Build on each and hold for a year or two and then sell for a profit. I’ve research 3 bedroom house sale prices in the area and they are mainly around $300K+, depending on other features of the property. Average rent for 3 bedroom house in the area is $230-$260. It’s just that it seems like a big project and although I think the numbers work, I’ve never taken on anything this big before.
Does anyone have any advice? Does it sound like the numbers are ok?
Grant @ interface.
Hi Phone Mark Kierapal at DTS surveyors 32525845 I use him all the time and have done many subdivisions for me. he will be able to help I promise I am a realestate agent at Wynnum Our cheapest spliter would be around 400,000
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