Hi all,
I have purchased 6000sqm of land near a regional city about an hour from Sydney. The land is zoned residential and my intention is to subdivide into 6-8 lots. When I bought it I assumed I would divide and sell but I'm wondering if it would be sensible to build on them and tenant them, or perhaps sell some and build on some. We have a big mortgage on our PPOR and at this stage the land has no mortgage although that will change soon. I have an ABN for my "day job" but am not a company. Any advice?I suppose you have to know the costs involved in doing the subdivision, then the building costs of the houses, to work out the potential rate of return for hold and rent. Do you have the capacity to keep them all? Perhaps to keep some to build on and sell some blocks to fund the houses. It will take a lot of money.
You need to start with a town planning company to give you advice. Sometimes they give the first consult free in hoping to get your business. They are in the yellow pages either under Town Planning or Surveyors-Land.
This also takes time for a subdivision from stratch. You can only advertise land for sale once the council have stamped the plans and this is after all water and sewerage and earthworks are completed.
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