Choosing a small development site

Viewing 13 posts - 1 through 13 (of 13 total)

tanjimh
Participant
@tanjimh
Join Date: 2011
Post Count: 39
July 19, 2014 - 2:25 pm
Hi, I am currently looking a small development site (4 townhouse) is Brisbane.
I am new to this and trying to learn as I go.
When I am looking at sites and if I like something, how do I know if I can build units/ townhouses on this site?
Do I need to talk to a town planner or with the council? What will be the best way?
Also, can someone recommend a mentor in Brisbane area who is a property developer and can point me to the right direction as I go.
RamkiSydney
Participant
@ramkisydney
Join Date: 2013
Post Count: 27
July 19, 2014 - 7:02 pm
To build 4 townhouses you need to look for a LMR site atleast more than 600 sqm
superAndrew
Participant
@superandrew
Join Date: 2014
Post Count: 188
July 19, 2014 - 8:47 pm
Like ramkisydney said, it needs to be at least 600sqm and LMR (Low to Medium Residential) Zoning. Also you need to check that there are no restrictions to demolish (DCP).
You can use this website to check the zoning and restrictions for the land.
http://pdonline.brisbane.qld.gov.au/MasterView/masterplan/enquirer/default.aspx
This one is the new interactive map and also outlines the zoning. You have to set to show the zoning on the left hand side menu.
http://cityplan2014maps.brisbane.qld.gov.au/CityPlan/
That’s something to get you started to find the right properties.
Cheers
Andrew
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.au
tanjimh
Participant
@tanjimh
Join Date: 2011
Post Count: 39
July 21, 2014 - 11:53 am
Thanks Andrew.
I have looked into these sites and they are very informative.
This will give me an idea to pick the sites with right zoning.
If I find a site that is a decent size i.e. 700 sqm; don’t have any heritage overlay for demolition, not in flood zone and if the numbers stacks up, is there anything else I need to consider before making an offer?
Who do I need to talk to about accessing the sewer and water for the new dwellings?
superAndrew
Participant
@superandrew
Join Date: 2014
Post Count: 188
July 21, 2014 - 12:48 pm
tanjimh wrote:
If I find a site that is a decent size i.e. 700 sqm; don’t have any heritage overlay for demolition, not in flood zone and if the numbers stacks up, is there anything else I need to consider before making an offer?
Yes. That is only one part.
You also need to determine whether it is worth it to develop in the area the property is located. Is there an under-supply of properties? Look at vacancy rates and rental growth rates. What other developments have been approved or are currently being constructed in the area? Maybe there will be an over supply in the next 6 months. You have to keep in mind that a development will take you at least 1 year (including approval and construction stages) if not more. Especially if it is your first one and you haven’t established a team of consultants yet.
There is a lot more to think about than the few points I covered above. Here is quite a good book to give a summary of what is involved:
http://www.booktopia.com.au/profit-from-property-philip-thomas/prod9781742469461.html
tanjimh wrote:
Who do I need to talk to about accessing the sewer and water for the new dwellings?
I’d recommend to find yourself a townplanner. He/she will be able to advise you on that. There are a few on this forum.
Cheers
Andrew
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.au
tanjimh
Participant
@tanjimh
Join Date: 2011
Post Count: 39
July 21, 2014 - 9:23 pm
Thanks again Andrew.
Now i have to find a town planner, drafty and an accountant.
I submitted an offer to buy a small development site today subject to 28 days finance.
So far I know that it’s LMR zone, not in flood area, got sewer and water connection.
I don’t have much time left :)
RamkiSydney
Participant
@ramkisydney
Join Date: 2013
Post Count: 27
July 21, 2014 - 9:56 pm
wow, you found out what’s LMR on the weekend and made an offer on Monday, good job tanjimh. Good luck. Which suburb?
waydo77
Participant
@waydo77
Join Date: 2011
Post Count: 155
July 22, 2014 - 7:23 am
Make sure you allow for holding costs while DA goes through too that could be a money eater
tanjimh
Participant
@tanjimh
Join Date: 2011
Post Count: 39
July 22, 2014 - 9:29 am
Thanks Waydo77 for the advise. I am planning to rent it out until that period. Hopefully I am doing it right.
@ramkisydney, Thanks mate. I will let you know about the suburb soon :)
RamkiSydney
Participant
@ramkisydney
Join Date: 2013
Post Count: 27
July 22, 2014 - 10:11 am
Np, good luck, I bought a 607 sqm LMR land couple of months back in Mount Gravatt (Tenby st), rented it for now.
tanjimh
Participant
@tanjimh
Join Date: 2011
Post Count: 39
July 23, 2014 - 9:04 am
By the look of it, I am going to miss out on this deal. It set on the market for two months before I made an offer.
Now the Agent is telling me that he will get tender on the land because there are multi offers and I need to submit my best and last offer to have a chance!!!
superAndrew
Participant
@superandrew
Join Date: 2014
Post Count: 188
July 23, 2014 - 10:06 am
Sounds like bs to me.
I wouldn’t change the offer. The price you offer needs to leave you with enough profit when you develop. If they want more then move on to the next property. It’s not worth it.
Don’t get emotionally attached. Just look at the numbers. If they don’t add up then there is no deal.
Cheers
Andrew
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.au
Corey Batt
Participant
@cjaysa
Join Date: 2012
Post Count: 1,010
July 23, 2014 - 2:21 pm
Stick to your guns, development is especially price sensitive, if the margins dwindle this leaves you less available to cover potential cost overruns etc. Even if this one ends up a pass, there’s millions on houses in Australia. :)
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
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