Hi everyone,
I have a good-sized portfolio of over 10 properties and have done a few renovations in the last year but in 2014 I'm ready to step it up to the next level. I want to make $1M in a single deal. This could be cash or equity, it doesn't matter. I would love to hear everyone's approach to doing this. As I do, please assume you:
– Have $5M in cash/equity
– Want to do something in Sydney or Brisbane
– Work a current full time job (i.e. can't spend 40 hours a week project managing)
Of course I could continue to buy and hold one property at a time, but that's boring. Excited to hear your ideas, whether it's something to do with a block of apartments, commercial, development, etc.
Thanks!
I recently had a client get DA for 2 detached dwellings on a 280sqm block in eastern suburbs syd. She will clear at least $800 profit. Purchase price of $1.5mil and DA fees of $150k.
Good town planner and understanding of planning requirements is a must.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
I don't know … $800 doesn't sound like much of a profit to me
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Review house prices in China, multiply it by 80%, put deposits on off the plan apartments at that price in areas Chinese are buying or with projects aimed a Chinese buyers. As unemployment rises in Australia its probably your safest bet. But that's all speculation of course. And 20% is a big ask on the back of a cycle.
Shahin, that's interesting. What kind of dwellings are they then if not attached (duplex)? Also which suburb if you don't mind me asking? I'm on lower north shore.
I have sent you a PM with the details – its 2 x 3 storey dwellings.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Look at taking a Call Option on a potential development site.
Last one we did netted over 1.2 M in the year and we use it as a secondary income to our buy and hold rents.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Great, thank you.
Hi Shahin,
I didn't get it. Can you send again please?
007,
When you say call option what are the formalities for locking down legally such an option? (Contract, Caveat?)
Is there a usual way that an owner of a property would be approached to make an offer to enter into a call option over a particular property?
What sort of terms would be in such an offer?
What are the key things to getting development approved?
You may be interested in developments, as this way you can accelerate building your equity. In my case, I am looking for a suitable site in Brisbane (< 10 km) to develop townhouses. Land should be $150k – $180k per townhouse. Building cost $250k /townhouse. The townhouse would typically consist of 3 bedrooms, 2 1/2 bathrooms and single garage. This includes all costs, such as professional fees, council fees, finance cost and building cost. So cost per townhouse is $400k to $430k. Sale price should be $480k to $560k per townhouse. Time frame: 3 months start up (DA & BA), 8 moths construction, 3 months sale. Profit $80k plus per townhouse. I would be interested in sites suitable for at least 4 townhouses. The more townhouses the better economy of scale. I would build the townhouse myself, as I am a builder and investor.
Andrew Koziel
andrew@alekconstructions.com.au
M: 0418603958
How much Servicablity do you have ? 1-2 mil or more. With 5 mil / cash (not equity),
I think you can make a bit more then a million in a 18 month-2 year period. Plenty of medium/ high density developments in good areas, 20/30 2 to 3 storey houses. That would bet closer to 2.5 mil.-3 mil (depending on intrest for loans if required or not) With land at 1 mil purchase price. 5 mil of construction 1 mil of development costs: 10 mil end value. You could gear at 40-50 % LVR and not require any presales. Could sell 15/20 houses and keep 8-10 houses free hold (end value 300-320k a home 3bed / 1 bath. Subdividing land as well instead building a apartment building is going to give you that extra equity before you commence building.
Pm me and I can show you some of the types of sites I have been putting offers on with my business partners, sites are in Adelaide even though u said Sydney. But money is money.
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