All Topics / Creative Investing / Subdivision, option, vendor finance …… oh the possibilities ….

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of ajacksajacks
    Participant
    @ajacks
    Join Date: 2012
    Post Count: 11

    Hi investors.

    For those of you who may have experience in the creative side of decision making or can assist with my situation here's where I'm at:

    I currently have a property on just under 700sqm which has a tenanted house at the front and at the back has adequate room for a development, in fact when I purchased last year the agent spoke of plans for a 2 storey unit with a permit that had recently expired. Speaking with the agent he is unable to obtain them and that's where I'm at with that right now.

    So not having the motivation to persue the building side of things right now, I have come up with 3 possible investment scenarios that could have their goods and bads. Any advice welcomed:

    1. I subdivide the land, manage this process and sell an option to a builder or developer for future settlement.

    2. I sell an option for a builder/developer to manage both the subdivision and DA.

    3. Subdivide then vendor finance the land to a builder/developer for the duration of the build.

    If any of this need clarification please let me know.

    Cheers,

    A

    Profile photo of ducksterduckster
    Participant
    @duckster
    Join Date: 2004
    Post Count: 1,674

    contact council see if you can renew the DA  application

    Profile photo of ajacksajacks
    Participant
    @ajacks
    Join Date: 2012
    Post Count: 11
    duckster wrote:
    contact council see if you can renew the DA  application

    Cheers Duckster. What do you think my options are to get copies of the plans?

    A

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    You can get a copy of the DA from the council – this includes everything from submission to determinations (approval and rejections).

    To answer for first question, generally speaking, if you can do most of the work upfront such as ascertaining the DA and even CC then the more profit you will make. The interesting thing will be to make the most out of the site. By this I mean ascertaining consent to build as many dwellings as possible. The 2 storey unit permit sounds more attract than the subdivide into 2. Of course getting DA on the 2 storey unit will be far more difficult than a ‘simple’ subdivide.

    Regards

    Shahin Afarin – Property Finance Consultant
    http://elitepropertyfinance.wordpress.com

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
    Email Me | Phone Me

    Residential and Commercial Brokerage

    Profile photo of ajacksajacks
    Participant
    @ajacks
    Join Date: 2012
    Post Count: 11

    Gold.

    Thank you.

    A

    Profile photo of matt1968matt1968
    Member
    @matt1968
    Join Date: 2012
    Post Count: 1

    Not sure what tax  benefits or cost you could save but if you build units on the one title you can make more rent and perhaps sell to a almost retired person as a whole for the self funded retirement..you would save heaps on sub divison , that can be some one elses head ache later

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    I think you should run the numbers on all the possible scenarios, and go with the one that makes you the most profit. 

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Rick staRick sta
    Participant
    @rick-sta
    Join Date: 2011
    Post Count: 120

    The minimum block size for possible subdivision in my area is 1012sqm.
    Where is the property located?

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