All Topics / Help Needed! / Development Ipswich Advice
I Bought 7yrs ago a property in Dinmore with a house sitting on sizeable block of 2400sqm for $420K
https://www.dropbox.com/t/zQELtk6Qnudm4Me3Im now deciding what to do with the Property, i have 3 options
I Owe – $329K
Its currently Worth – $750K as it stands1) Ive just had an Offer from a BA for $1m due to its development potential. 6month option with DD and $10K non refundable deposit.
2) Subdivsion
DA Costs -$20K
Civils/Survey/Town Planning Costs $340K
Selling land $325K = Total $1.3m.
$1.0m Profit3) Build Houses
Buildx4 $370K ($1.5M)
Sell $700K ($2.8M)
$1.3m ProfitWhat is everyone’s thoughts, help or advice please.
Cheers
Dean- This topic was modified 4 weeks ago by dangermouse99.
Ah Dear Danger Mouse,
I see the trap hasn’t caught you yet! Long may that be the case!
Some thoughts for you:
Buyer Advocates
Go in with your eyes open. The usual ways BAs role is that they lock up the deal, then try to shop it around. I would want to know if they have an immediate buyer. Beware the re-trade too at the end of DD (where they significantly drop their offer after eating up the DD time). Six months is a long time mate.
Subdivision
I’m inclined to explore this option with a town planner by setting aside a limited amount as a feasibility budget. That will also shed more light on whether the BA route is likely or not. You’re playing with profit here, so the more you know, the better informed you’ll be.
Building
Unless you are an experienced developer / builder, the $300k profit is not worth the extra risk, and aggravation, in my opinion. That said, I think the SW Brissie optics are strong until the Olympics.
Long live the mouse!
- This reply was modified 3 weeks, 2 days ago by Steve McKnight.
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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