Subdividing in Logan City – QLD

Hi Kuade

I have not subdivided land in QLD but have done so in WA.

The only way you are going to work out whether the profit is there is to number crunch!!!

First work out what your end product will be and what the gross sales will be and then take away all your costs to get in.

For eg in W.A. when I am looking at a site, I call the local shire and talk to "Planning Department" they will tell you straight away if there could be any potential problems.. !!! 

I calculate the followings costs:

1. Purchasing/settlement costs

2. Subdivision costs – survey/power/electricity/site clearance incl tree removal. 

With power, if it not underground usually when you develop a site it will be a shire condition to put it underground

With water, if you are subdividing a few blocks, if the pipeline is not diagnal or running across the length of the property.. you may have to pay for them to extend the pipeline.  Do your research!

3. Bank holding costs (monthly repayments for the life of the project)

4. Selling agent costs (usually 3.3% including GST)

5. Thirdly, dont forget your profit… usually I work on 20% of the gross but it depends on the market and the length of the project

Make sure the land is flat and of a rectanglular/square shape.. if it is not completely flat you may need some retaining walls and will need to factor this into your calculation!!

Make sure you are honest with your calculations and have researched it, do not play guessing games.

RESEARCH RESERACH RESEARCH

Good luck!!