All Topics / Help Needed! / Development near Nowra

Viewing 3 posts - 1 through 3 (of 3 total)
  • Profile photo of streamlineinvestingstreamlineinvesting
    Participant
    @streamlineinvesting
    Join Date: 2010
    Post Count: 171

    A friend of mine recently showed me this land for sale and I was wondering if it was a good oppurtunity or not. I have little experience with real estate in general and no first hand experience with developments. Basically the specs are the following:

    Land of 714m2
    Approximately 5 min walk to the nearest beach
    Located near Nowra (3 hours south of Sydney)
    Approved plans for 2 x 3 bedroom 2 bathroom townhouses available
    For sale at $165,000

    He is planning at buying the land, building the townhouses and renting them as vacation homes. Other places in the area seem to be available at $150 a night at winter rates, much higher in the summer.

    We asked a relative for some basic advice and got back prices of construction to be $1500/m2 building space, $20,000 landscaping and $10,000 connecting services. All up would be approximately $500,000 to build both the properties. Does this sound realistic and feasible? Also how long would it take to construct both the properties, I would assume 9 months to a year but I could be way off.

    Having a general look in the area, seems to be able to get a price of about $450,000 for each property at the end, if he was to sell them instead of holding on and renting it out.

    Overall, does it seem like a good investment? Is there anything significant I have missed or underestimated?

    Profile photo of devo76devo76
    Member
    @devo76
    Join Date: 2007
    Post Count: 542
    Profile photo of streamlineinvestingstreamlineinvesting
    Participant
    @streamlineinvesting
    Join Date: 2010
    Post Count: 171

    Yes the land is in Culburra, I couldn't think of the suburb when I was first typing it up and my friend just told me it was near Nowra.

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.