All Topics / Help Needed! / Development Ipswich Advice

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  • Profile photo of dangermouse99dangermouse99
    Participant
    @dangermouse99
    Join Date: 2004
    Post Count: 88
    November 13, 2024 - 10:36 am

    I Bought 7yrs ago a property in Dinmore with a house sitting on sizeable block of 2400sqm for $420K
    https://www.dropbox.com/t/zQELtk6Qnudm4Me3

    Im now deciding what to do with the Property, i have 3 options
    I Owe – $329K
    Its currently Worth – $750K as it stands

    1) Ive just had an Offer from a BA for $1m due to its development potential. 6month option with DD and $10K non refundable deposit.

    2) Subdivsion

    DA Costs -$20K
    Civils/Survey/Town Planning Costs  $340K
    Selling land $325K = Total $1.3m.
    $1.0m Profit

    3) Build Houses
    Buildx4 $370K ($1.5M)
    Sell $700K ($2.8M)
    $1.3m Profit

    What is everyone’s thoughts, help or advice please.
    Cheers
    Dean

     

     

     

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763
    November 18, 2024 - 9:59 am

    Ah Dear Danger Mouse,

    I see the trap hasn’t caught you yet! Long may that be the case!

    Some thoughts for you:

    Buyer Advocates

    Go in with your eyes open. The usual ways BAs role is that they lock up the deal, then try to shop it around. I would want to know if they have an immediate buyer. Beware the re-trade too at the end of DD (where they significantly drop their offer after eating up the DD time). Six months is a long time mate.

    Subdivision

    I’m inclined to explore this option with a town planner by setting aside a limited amount as a feasibility budget. That will also shed more light on whether the BA route is likely or not. You’re playing with profit here, so the more you know, the better informed you’ll be.

    Building

    Unless you are an experienced developer / builder, the $300k profit is not worth the extra risk, and aggravation, in my opinion. That said, I think the SW Brissie optics are strong until the Olympics.

    Long live the mouse!

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

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