hi,
i have access to somebody else's money which is around 300k. i can use it as i want as long as i share 50% profits with them and repay them the 300k within 3 years (it's basically an interest free loan).i have been thinking of buying land building units in melbourne but i have no idea where to start or what to do.
i hear people build units and make a good sum of money but because i've never done this before i don't want to make a mistake that could potentially cost me in lower returns or worse, losing money.
please, i need some direction and advice from people who mightve already done something similar.
also are there any companies out there who manage it all end to end? ie. from council approvals right through to building and even selling the properties.
any feedback, advice, direction or simply your opinion would be hugely appreciated.
thank you
regards
It takes lots of research. its not just as simple as build it and they will come. the right building in the right area at the right time…. UNLESS you can do something that is always in ok demand, and do it for a great deal.
But, finding great deals is again, research and knowledge.
I have a book which is awesome for a step by step guide to developing in australia, its called
Australian residential property development – a step by step guide for investors. its by ron forleereally informative book.
Spend some time researching areas, see what other people on here are doing atm, and go from there.
There are some development companies who can handle the entire process for you, but you pay for it… and that often eats up your profits.I’d start of with what you know, and slowly increase the complexity of your deals as you learn more.
I would imagine the "easiest" method is to buy land, and then hire a mainstream builder such as Pioneer or Metricon, to build a home on it. You'd really need to do your numbers though, because if your plan is to sell on completion for a profit, then you want to ensure there is a profit. Don't forget to factor in "blowout costs", solicitors fees, bank interest during construction, etc etc
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hey JacM
I was just looking at the Metricon website. looks really nice.
Do you know of a comparable company that builds in Adelaide?I would look around gladstone in queensland with the LNG and other projects in the pipe line
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