Forums / Property Investing / Help Needed! / Strategy to make $1M

Viewing 12 posts - 1 through 12 (of 12 total)
  • Profile photo of MrLasVegasMrLasVegas
    Participant
    @mrlasvegas
    Join Date: 2011
    Post Count: 39

    Hi everyone,

    I have a good-sized portfolio of over 10 properties and have done a few renovations in the last year but in 2014 I'm ready to step it up to the next level. I want to make $1M in a single deal. This could be cash or equity, it doesn't matter. I would love to hear everyone's approach to doing this. As I do, please assume you:

    – Have $5M in cash/equity

    – Want to do something in Sydney or Brisbane

    – Work a current full time job (i.e. can't spend 40 hours a week project managing)

    Of course I could continue to buy and hold one property at a time, but that's boring. Excited to hear your ideas, whether it's something to do with a block of apartments, commercial, development, etc.

    Thanks!

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

    I recently had a client get DA for 2 detached dwellings on a 280sqm block in eastern suburbs syd. She will clear at least $800 profit. Purchase price of $1.5mil and DA fees of $150k.

    Good town planner and understanding of planning requirements is a must. 

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

    Residential and Commercial Brokerage

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

    I don't know … $800 doesn't sound like much of a profit to me wink

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of jfk_ojfk_o
    Member
    @jfk_o
    Join Date: 2013
    Post Count: 11

    Review house prices in China, multiply it by 80%, put deposits on off the plan apartments at that price in areas Chinese are buying or with projects aimed a Chinese buyers. As unemployment rises in Australia its probably your safest bet. But that's all speculation of course. And 20% is a big ask on the back of a cycle.

    Profile photo of MrLasVegasMrLasVegas
    Participant
    @mrlasvegas
    Join Date: 2011
    Post Count: 39

    Shahin, that's interesting. What kind of dwellings are they then if not attached (duplex)? Also which suburb if you don't mind me asking? I'm on lower north shore.

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

    I have sent you a PM with the details – its 2 x 3 storey dwellings.

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
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    Residential and Commercial Brokerage

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Look at taking a Call Option on a potential development site.

    Last one we did netted over 1.2 M in the year and we use it as a secondary income to our buy and hold rents.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of MrLasVegasMrLasVegas
    Participant
    @mrlasvegas
    Join Date: 2011
    Post Count: 39

    Great, thank you.

    Profile photo of MrLasVegasMrLasVegas
    Participant
    @mrlasvegas
    Join Date: 2011
    Post Count: 39

    Hi Shahin,

    I didn't get it. Can you send again please?

    Profile photo of jfk_ojfk_o
    Member
    @jfk_o
    Join Date: 2013
    Post Count: 11

    007,

    When you say call option what are the formalities for locking down legally such an option? (Contract, Caveat?)

    Is there a usual way that an owner of a property would be approached to make an offer to enter into a call option over a particular property?

    What sort of terms would be in such an offer?

    What are the key things to getting development approved?

    Profile photo of andkozandkoz
    Participant
    @andkoz
    Join Date: 2006
    Post Count: 10

    You may be interested in developments, as this way you can accelerate building your equity. In my case, I am looking for a suitable site in Brisbane (< 10 km) to develop townhouses. Land should be $150k – $180k per townhouse. Building cost $250k /townhouse. The townhouse would typically consist of 3 bedrooms, 2 1/2 bathrooms and single garage. This includes all costs, such as professional fees, council fees, finance cost and building cost. So cost per townhouse is $400k to $430k. Sale price should be $480k to $560k per townhouse. Time frame: 3 months start up (DA & BA), 8 moths construction, 3 months sale. Profit $80k plus per townhouse. I would be interested in sites suitable for at least 4 townhouses. The more townhouses the better economy of scale. I would build the townhouse myself, as I am a builder and investor.                                                                                                                                                   

    Andrew Koziel

    [email protected]

    M:  0418603958                                                                                                                                                                                                                          

    Profile photo of wilko1wilko1
    Participant
    @wilko1
    Join Date: 2010
    Post Count: 510

    How much Servicablity do you have ? 1-2 mil or more. With 5 mil / cash (not equity),

    I think you can make a bit more then a million in a 18 month-2 year period.  Plenty of medium/ high density developments in good areas, 20/30 2 to 3 storey houses. That would bet closer to 2.5 mil.-3 mil (depending on intrest for loans if required or not)  With land at 1 mil purchase price. 5 mil of construction 1 mil of development costs: 10 mil end value. You could gear at 40-50 % LVR and not require any presales. Could sell 15/20 houses and keep  8-10 houses  free hold (end value 300-320k a home 3bed / 1 bath.  Subdividing land as well instead building a apartment building is going to give you that extra equity before you commence building. 

    Pm me and I can show you some of the types of sites I have been putting offers on with my business partners, sites are in Adelaide even though u said Sydney. But money is money.  

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