All Topics / Help Needed! / Newbie in Potential Property Development

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  • Profile photo of tanhsatanhsa
    Member
    @tanhsa
    Join Date: 2009
    Post Count: 3

    Hi there! I am writting hoping to get some help from all those seasoned property investors/developers. I have recently acquired a 1200m2 block of land with a house. After due consideration, I may want to sub-divide this piece of property and build some units/townhouses on it. Can anyone help to shed some lights as to how to start doing that? Can someone also advise me on the cost of building units versus townhouses and what are the difference in the selling prices at the end of the day. I am also on a lookout for a company that i can partner with to do this development. Appreciate all constructive comments and advice. Thanks in advance.

    Profile photo of AzaliaAzalia
    Participant
    @azalia
    Join Date: 2008
    Post Count: 56

    Firstly, you will want to know that the site is going to be feasible to do said development. So you will want to roughly calculate the expenses and the income from selling the completed dwellings.

    What is the Zoning? How many dwellings will the zoning permit you to build on this land? Also talk to the town planner about what your council needs & wants (this will give you some indication of what to build).

    I have a company/trust set up already that is not in use, and I work Full Time for a land developer in WA (has been extremely valuable to me as I get their help/advice free when I do due diligence). I am beginning to do some developments of my own starting with small ones…

    Where abouts are you? Where is the land exactly? As building costs vary state to state but I can give you an estimate once I have more details. Feel free to PM me…

    Profile photo of tanhsatanhsa
    Member
    @tanhsa
    Join Date: 2009
    Post Count: 3
    Azalia wrote:
    Firstly, you will want to know that the site is going to be feasible to do said development. So you will want to roughly calculate the expenses and the income from selling the completed dwellings.

    What is the Zoning? How many dwellings will the zoning permit you to build on this land? Also talk to the town planner about what your council needs & wants (this will give you some indication of what to build).

    I have a company/trust set up already that is not in use, and I work Full Time for a land developer in WA (has been extremely valuable to me as I get their help/advice free when I do due diligence). I am beginning to do some developments of my own starting with small ones…

    Hi Azalia, Thanks for the advice. The house is on an approx 1200m2 block under Residential 1 Zone (R1Z). There are no caveat etc on it. There have been quite a few blocks opposite mine that have been sub-divided and developed. I may talk to a town planner to gauge the limitation of the sub-division. How are your doing with your own project? 

    Where abouts are you? Where is the land exactly? As building costs vary state to state but I can give you an estimate once I have more details. Feel free to PM me…

    Profile photo of LockymacLockymac
    Member
    @lockymac
    Join Date: 2009
    Post Count: 78

    Hi,

    Check this thread out https://www.propertyinvesting.com/forums/property-investing/value-adding/4329357

    The difference between town houses and normal dwellings. Basically as soon as you go two storeys the cost starts to blow out a bit.

    Make sure that the sewer is connected as well.

    Hope it helps

    Lachlan McDonald
    Stroba Group

    Profile photo of tanhsatanhsa
    Member
    @tanhsa
    Join Date: 2009
    Post Count: 3

    Thanks for the info Lachlan. Since it will be my first project, I would probably need lots of help from people like you.  Can you recommend companies that do all the approval and submission, planning as well as double up as contractor/builder? It would probably be the best way out for me.

    Can you also advise if it is better to sell off-the-plan or readily-built? Thanks.

    Profile photo of LockymacLockymac
    Member
    @lockymac
    Join Date: 2009
    Post Count: 78

    Well ill stay out of the company side because thats what we at Stroba Group do. We do the hole process but you can also go to a local town planner for the approvals and submissions. From there you can get plans drawn up and look for a builders to quote on the plans for you.

    In regards to selling of the plan or ready built it depends how good your funding is and how many units you are building.

    With an eight unit site I would sell of the plan because once you sell all the properties you can get 100% finance. (does that make sense)

    But with three or four units the carrying costs are smaller and you may be able to manage them

    Im a low risk kinda guy so i would try and sell a couple of the plan to help with finance

    Hope it helps

    Lachlan

    Profile photo of marx3bullmarx3bull
    Member
    @marx3bull
    Join Date: 2009
    Post Count: 86
    Lockymac wrote:
    Hi,

    Check this thread out https://www.propertyinvesting.com/forums/property-investing/value-adding/4329357

    The difference between town houses and normal dwellings. Basically as soon as you go two storeys the cost starts to blow out a bit.

    Make sure that the sewer is connected as well.

    Hope it helps

    Lachlan McDonald
    Stroba Group

    I did not find your point in the link you mentioned. That thread is about the cost of breaking of a house and building a new house there. So I am confused.

    Profile photo of LockymacLockymac
    Member
    @lockymac
    Join Date: 2009
    Post Count: 78

    Yes but the post i made tells you about the costs in regard to subdividing and an idea of the process that you have to go through

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