Anything stacking up? Subdivisions or major reno?

Discussion in 'Development' started by Jmillar, 28th Apr, 2018.

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  1. Jmillar

    Jmillar Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    660
    Location:
    Sydney
    Hi all,

    Doing a couple subdivisions (1 in Logan, 1 in Ipswich) and finding it extremely hard to find more suitable sites. At the prices they're selling for in the Logan area, there is literally 0-10% profit in them, so not worth it considering the capital outlay required.

    I've looked at a few reno projects in the Logan area but given the low capital values, the margins aren't high enough for a flip. Perhaps areas closer to Brisbane are ripe?

    Wondering if there are any subdivision sites (up to 1 into 4) or major renovation projects that actually stack up? Ideally in QLD but would look at any stable/rising market.

    Thanks
     
  2. strongy1986

    strongy1986 Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    1,095
    Location:
    VIC
    I think your too city centric
    these projects in cities are often purchased with no discount to the net present value of what the sites would be worth subdivided.

    can only make money when the market is booming or if it's extremely flat /gloomy you may be able to make money by purchasing at a discount

    I prefer regional projects as councils are easy to deal with, little competition when buying and you can see the profit when you buy without relying on market rising
     
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  3. strongy1986

    strongy1986 Well-Known Member

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    Location:
    VIC
    Perth might be the best pick of the cities or maybe Hobart which is close to a country town anyway
     
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