As most of you would know, I am trying to get an option on a property that I can put a da through council on to develop.
Problem is, almost all land around here on the central coast has already been subdivided (or owners think that it will be dead easy, and thus ask a higher price).
Anyone got any bright ideas on how to source a property?
If your sole intention is to find land for “subdivision” then personally I do not put this in the same category as “development” – unless you intend adding improvements [beyond basic utilities].
If however your intention is to locate land for building SFH’s, apartments, multi-use, etc, then the fact that desireable locations are already subdivided should not be an issue if the numbers stack up, i.e. secure options on adjoining lots to meet your objective.
This is something we do on a regular basis in order to secure sufficient land area, maintain views, or take potentially obstructive adjoining developments/buildings out of the equation.
If the numbers do not stack up, then the focus should be on securing a land option
in locations on the perimeter where demand is starting to catch up with supply.This land may not be as desireable in terms of coastal views, etc, but unless the marketing strategy is reliant upon specific sites, the objective of most real estate developers is to limit risk and maximize return on investment – which can be achieved in locations considered less desireable today.
— Michael
Micheal,
I must say I would disagree on the definition you attribute to the term ‘developer’. I thought and its only my opinion that a property developer is anyone who adds value to the property. So I thought that subdividing and constructing basic services would define one as a developer.
But like many have stated in this forum that sometimes its like splitting hairs in defining the difference between a developer and an investor.
Kabung
From a profession standpoint, the following definitions are more common.
Developer: builds on land thereby increasing its value. The developer may be an individual, but is often a partnership or corporation.
Development: improving land for use by adding or replacing buildings.
— Michael
Isn’t a developer an investor.
Corey Corby
Anyway, back to the origional question… May be pointing out the obvious, but if there is no land left on the central coast… look somewhere else?
Dan.
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“May be pointing out the obvious, but if there is no land left on the central coast… look somewhere else?”
There will always be land – whether you can obtain a parcel or two depends on how much you want the land and your ability/willingness to negotiate a feasible deal.
— Michael
“Anyone got any bright ideas on how to source a property?”
Either a local buyers agent, or research land/property of interest then approach the owner directly.
Personally, I prefer to have as much information at hand as possible – about the site, local market, sales trends, etc. We then approach the owner with the intention of negotiating a favorable [win-win] outcome.
“(or owners think that it will be dead easy, and thus ask a higher price).”
If you consider the price too high then move on to the next property. But keep in mind, what may appear a high price at first, may in fact become a very profitable transaction.
It’s all about due diligence; how you negotiate the transaction; and your exit strategy.
— Michael
Oops, when I said that there was no land left, I meant to say there is no subdivisible land left (none that I have come across)
To reiterate, the reason I pointed out a difference between a developer and someone who subdivides land is if a location is limited to land that has been subdivided into smaller parcels, then a developer will locate and acquire adjoining lots for the purpose of conducting the proposed development. Whether the lots are improved [built on] or not – if the numbers stack up.
If the intention is to simply subdivide land, but all desired locations have been subdivided, then it would appear the only option is to look elsewhere.
— Michael
wrappack,
If you are interested in sourcing properties in Melbourne, i might be able to help you. (nb I am not a real estate agent and will not try to sell you anything, I run a town planning business and so come accross opportunites frequently, before they are given to an estate agent).
Regards
Alistair Perry
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