An opportunity has arisen for me to buy a property next to one that I already own to join two residential properties with exisitng houses, creating a block approx 1400m2 with 30m2 street frontage. I was thinking to demolish the houses to create 5-6 villa homes. This is in an area where villa homes are fairly common and I believe that the location would be attractive for buyers. It would be my first property development.
[worried]
Any suggestions as to what order to do things? I’ve done some rough financials and was thinking to talk to a solictor, my accountant and bank manager and the council before putting in an offer for the second property.Jcon1,
This sounds like a good opportunity. You have most of the bases covered in terms of your pre project due diligence. I would consider council enquiries to be the first and most important piece. If they wont conisder a Development Application then the project would be delayed through concilliation. Next step is to run the numbers past your accountant to ensure it is viable. Most lenders are looking for at least a 20% return on cost. Some hoever will go lower based on the strength of the transaction.
Many of us in this community are finance brokers experienced in property development funding. so your first stopsure could be your bank manager for funding, but also pick our brains, one of us would be more than willing to assist.
After you have confirmed your position, that council will consider, that it is viable and can be funded, and that local real estate agents beelive they will sell move towardsputting together an offer.
Hope this helpsWade Greasley
Bluewater Financial Pty Limited
Residential and Commercial Lending Brokers (NSW)
[email protected] or 0414564743
“Discover the Bluewater Difference”[biggrin]I would consider council enquiries to be the first and most important piece. If they wont conisder a Development Application then the project would be delayed through concilliation.This and similar advice comes up as advice very often, it is not correct. Nothing you are told by a council officer in an initial inquiry, particularly if there are no plans for them to consider, means anything. Anyone considering developing needs a good designer/draftsperson and a consultant planner and they need to listen to their advice.
Regards
Alistair
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