Hello, was wondering if anyone could give me advice on purchasing property for the purpose of redevelopment. I am in my early 30’s and in a position where my husband and I have a large amount of equity in our home and a substantial amount of borrowing capacity.
I live in Perth and have been monitoring the amount of properties that are on the market offering an old rentable house on a large block. We are very interested in starting property investment within the next couple of months and are considering redevelopment option.
Can anyone offer advice in this area on how to get started, useful links, what I should be looking for, how this type of strategy should be financed.
Thanks
GillianHi, Gillian. You need to make some contacts. Depending on whether u want to renovate then flip/lease/wrap, or whether u want to redevelop into units etc< You need to contact
-finance broker
-builder
-council officers – re development applications/timing etcand of course, do the research into what people in those areas need – no use doing a one bedder in an area full of families- and how much u can expect as ROI (return on investment)- council will have the demographics for this, but it’s also available on the net – sites like realestate.com.au good luck
Gillian,
I’d work out some budget numbers that start with how much money you plan to make and then work backwards.
This will reveal the amount of cash you can spend to acquire the home to begin with.
Avoid, at all costs, being swept up with the potential to make a lot of money.
Look at what is happening around the area where you want to invest and see what other developers are doing and also see how easily renovated / new sub-divided properties are selling.
Bye
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Gillian,
I own an old house on a large block in Perth’s inner suburbs. Due to the zoning (R20) I can’t develop it in its own right, but if combined with one of the adjoining properties it would create a triplex site. I recently looked into purchasing the neighbour’s property to do the development, but the total cost on a go-it-alone basis put me just outside the bank’s criteria for capitalising interest (i.e. to avoid interest payments while there is no income from the property). The neighbours are extremely keen to sell, so if you are interested in being a partner in a triplex development, please let me know and I’ll provide the details.
Cheers,
The Baysider
Hi Baysider 01
This is my first post and I think I clicked at the wrong time. But anyway i am a Perth dweller and am also looking to do some developing and so also my be interseted in talking to you.
You can email me at [email protected]
Hope I clicked at the correct time
Cheers Wise1Dear Gillian,
It’s amazing! I’ve been asking myself exactly the same question for the last couple of days, so I am interested in the answers. I also live in Perth and have been looking at a few different areas over the last couple of months. My aim was to buy a house on a duplex/triplex block with rear access renovate the existing house and build on the rear. My biggest stumbling block is the finance. I could borrow to buy the house and block but the extra to develop and cover other costs I am unsure about. I will have to take Hilary’s advice and see the finance broker first.
I would be interested to know how you go, so drop me an email [email protected]
Regards,
Jerad
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