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QLD Brisbane Development Site

Discussion in 'Where to Buy' started by M-THIS, 10th Dec, 2015.

  1. M-THIS

    M-THIS Active Member

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    6th Jul, 2015
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    Location:
    Sydney
    Hi guys, I would like to accumulate an IP in brisbane within 8km or so from the CBD. I havent found much yet, but now have been looking into the many development sites advertised from Chermside all the way to closer to Camphill. Some with DA some without but with the zoning.

    My strategy is to hold for capital gains - so these properties with Dev potential upside seems very appropriate and i can reevaluate what to do down the track.

    What's your thoughts? What are the main criteria that i need when selecting one of the many advertised?

    Appreciate your thoughts!
     
  2. Bran

    Bran Well-Known Member

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    If its a development site, especially with DA, this will be built into the price - especially within 8km of the CBD. Will you develop it yourself? If not, then why pay the premium now? If you are after simple buy and hold, then you can probably afford to expand your selection criteria to include normal blocks.
     
  3. Leo2413

    Leo2413 Well-Known Member Premium Member

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    e
    1. Need to know the target market/demographic in the area you are looking to know what to build and the demand.
    2. Need to know how much the end product will sell for
    3. Determine your costs, hard and soft as much as you can with a contingency.
    4. Must buy the site at a price that allows you to make your return your looking for, plus some extra fat after you worked out rough costs and profits.
    5. If buying with DA, have to make sure A) the DA is appropriate for the area and the designs are decent for the area, and engineering is not going to cost a fortune to build. B) your not paying too much of a premium for the DA and you can still make your projected margin plus some fat after DA is factored in.

    But before all this, make sure you have at least 35% finance via cash/equity otherwise its all a waste of time.

    EDIT: I just realized you want to develop down the track. My answer was more geared to buying and developing now.
     
  4. Be Developer

    Be Developer Property Developer Business Member

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    @M-THIS

    have to go past 8KM radius to find a decent deal..... cash flow neutral or positive with development potential later..

    depends on budget and overall strategy!