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.
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…
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…
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 GroupThanks 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.
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
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 GroupI 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.
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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