Buyers Agents for small developments?

Discussion in 'What to buy' started by Jmillar, 4th Nov, 2017.

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  1. Jmillar

    Jmillar Well-Known Member

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    Hi guys,

    Just wondering if anyone knows of good BA's that specialise in development stock (2-3 lot subdivisions, duplex builds etc)? Will look in any state if it stacks up, but my general view is not to touch Sydney or Melbourne right now.

    I've bought 4 or 5 IPs through a BA but they don't do much development stuff.

    I am looking for sites I can buy, subdivide and sell out of (in part of full) in the short term - not properties I have to sit on for 10 years.

    Cheers
     
  2. Spotty

    Spotty Member

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    Hi Jmillar. We are the same boat. Looking for something that can be subdivide and in the right zone. I just bought something in Melbourne RGZ for $420. We looking at for 5,6 townhouse. PM me if u r interest it . Still many more out there around that price . Cheers
     
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  3. Jmillar

    Jmillar Well-Known Member

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    Thanks, will PM you now. And will let you know if I find a BA that would also be able to help you.

    Cheers
     
  4. SK Investments

    SK Investments Well-Known Member

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    Matt @BuyersAgent can help with properties in the Illawarra and South Coast which are still growing markets, along with the Central coast through to lower Hunter regions. He enjoys finding these small development sites for clients so would be worth talking to.
     
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  5. Jmillar

    Jmillar Well-Known Member

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    Thanks! I haven't considered those areas but more than happy to speak to Matt if there are opportunities there.
     
  6. mimi87126

    mimi87126 Member

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    I will be interested of a good buyers agent in Melbourne area, am looking to purchase a small development deal. Please share if any of you have any experience with good or not so good buyers agents. Will be interested to know.

    thanks guys.
     
  7. melbournian

    melbournian Well-Known Member

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    in all honestly, there are so many dev sites in Melbourne below 450K and this is not even in geelong. And we're not talking 2-3, we're talking 4-6 subdivision. Read the thread I have created on this.

    VIC - Melbourne Rezoned - ACZs, NEICs, RGZs GRZs etc

    even have one in the ACZ
     
  8. MTR

    MTR Well-Known Member

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    I would be using a Town Planner for starters not a BA, save you a fortune in time, money and sleep at night factor.
    I only know one person BA who focus is East Coast who is also a developer, however no longer sources sites in Australia.

    BA will unlikely know anything about significant vegetation overlays that may impact on the site and mean the difference from making money or losing money.
    Town planner will know exactly what you can/can not do with the block.

    I would start with searches on suburbs that may suit your criteria and then start nailing it down and no bank will lend money for larger projects if you don't have a track record.

    It also depends on your end strategy??? is it a land bank or a build today/now.?

    Will make a massive difference to what you are trying to achieve.

    It is very difficult to source finance for sites with 4+ units, commercial loans? and you also need deep pockets for this one. I also don't know any bank that will finance larger deals unless you have a track record.



    MTR:)
     
    Last edited: 6th Nov, 2017
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  9. D.T.

    D.T. Specialist Property Manager Business Member

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    Town planners assess developments not find them.

    Plenty of BAs are familiar with local rules and can find you something that complies.

    Definitely recommend finding one who is local to where you're buying. There's a couple companies about who'll reside in one state but operate in another which isn't the way to go.
     
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  10. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    I have used a BA to source a development site.

    They tend to shy away form feasabilities though as this can get them in trouble insurance wise so you may need to do this your self?
     
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  11. melbournian

    melbournian Well-Known Member

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    Unless you are in a professional relationship with a town planner. - no one is going to be willing to spend time to just help you with it (they have real clients to attend to)

    To be honest - the planning code is not that hard to read - easier than studying law subjects in Uni. In Melb, After April 2017 - the game has really changed - previous dev sites are different to today's times so any knowledge that one used need to be relearned. Also in Melbourne - it is so clearly stated whether there are vegetation overlays, flood overlays, aboriginal heritage overlays and easements are so clearly marked etc unless English is not your first language - then ok maybe....
     
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  12. Jmillar

    Jmillar Well-Known Member

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    Hi guys,

    As a couple guys picked up on, I'm looking for someone to source the sites that will work. Needs to be developments that stack up today, not stuff I have to sit on. I will then obviously speak to town planners and other consultants to get specific advice and ensure that the feasibility stacks up.

    Also as stated in my OP I'm looking mainly for 2-3 lot subdivisions and duplex/triplex builds, not 4+ units requiring commercial loans. I'm on a high income and am cashed up at the moment so this is what works for my strategy.

    Thanks
     
  13. DaveM

    DaveM Well-Known Member

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    A good BA should have a town planner and development/land division consultant they work with. They should also have a good idea on policy areas/design codes etc
     
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  14. MTR

    MTR Well-Known Member

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    Yes this

    I looked at a feaso one of the largest BA in Perth put together for my g/friend they could not get it right, she would have lost money

    Same with another forum member, this same BA recommended the wrong product for the suburb because it was the only way they could get the numbers to work. No interest in the client's ability to sell or to finance the deal.

    From my experience most BA don't specialise in development sites. If looking for land banking then that is a different story.
     
    Last edited: 6th Nov, 2017
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  15. MTR

    MTR Well-Known Member

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    Yes
    But if your smart enough you can save money going direct to a townplanner, they also have many contacts, builders architects etc.
     
    Last edited: 6th Nov, 2017
  16. MTR

    MTR Well-Known Member

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    Thats key develop relationship with t/planner worked for me
    Hourly rate
     
  17. MTR

    MTR Well-Known Member

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    Me too- looking for sites that work today
     
  18. Northboy

    Northboy Well-Known Member

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    Paul Siwek from Logica Property often sources smaller development sites for clients in suburbs of Adelaide. I used him for my Adelaide purchase and can highly recommend.
     
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  19. melbournian

    melbournian Well-Known Member

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    Try Brisbane since u can’t find anything that works in Melb :)
     
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  20. MTR

    MTR Well-Known Member

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    I started a thread asking for PC members to post on deve sites that stack up today. I don't think anyone has done this?

    Markets like Syd and Melb, land has soared and hard for numbers to stack up even with a DA. We looked at this recently. I am in Perth and problem here is there is way too much oversupply, which means high risk, not the right time to develop, margins ways to skinny.

    As far as the flat markets go just need to be careful as you may find the only projects that stack up are larger projects.



    MTR:)
     
    Last edited: 6th Nov, 2017