Developers, anyone looking to buy develop land 2019?

Anyone?

Prices are dropping, but anyone actively looking to buy?

 

Few of my clients are still licking their wounds but even they acknowledge it's probably a good time to buy, though they are very location savvy. Well located property is never a bad investment despite what the doomsayers predict.

 

I don't think so.... How much are these development sites costing to hold in these great locations? and in a falling market...

Development sites are all about the land component, you generally need deep pockets, That is why I ask how much to hold..... would you care to share

,
MTR

 

I agree, but that would also depend on rentals vs loan ratio.

I was in a fortunate position in my last site to be cash neutral from rentals until it was demolished. But I am not sure whether you can replica this method in today's market and make a decent return on top of it

 

Yes, this is the issue price of development sites soared during the boom cycle. So its a matter of weighing it up and will they continue to fall? Very likely from what we are currently seeing.

I have another suggestion... wait till something makes sense, where you can actually develop today, it may mean waiting and then low balling until the numbers stack up. This is what an investor friend is doing in a not so great market Perth. Low ball 20 and perhaps 1 will say yes.

 

Need to think about what the finished product can be sold for - and how quickly!

 

Yes I have been actively looking. Surprisingly, less bargains than last year. I feel some “panic sold” in the months leading up to Christmas but are choosing to hold on ATM.

 

Have the land already but thinking of building a duplex (via Middle Housing code) and subdivide via company title in lower north shore (strata and torrens not allowed at this moment). I have seen some successful company title sales recently but I have heard horrible rumours regarding financing.

 

Yes, I would not do.
There is a good reason that Company Title was overtaken by strata in 1961.
Generally the finished product is worth 20-30% less that the equivalent strata property. Financing is difficult as their is no real title on the property, so they lend on the shareholding.

 

Thanks, I really don't want that. Any idea why I've seen company title sales go well recently? I think it's the only way you can own a Duplex in that suburb and also because the average Joe doesn't know what the difference is?

 

My personal strategy is to wait until prices start increasing before jumping in. That way if the trend continues the final product will get a little extra market lift. Although other friends in the game say they are still finding attractive sites, they don't seem to actually go through with the purchase.

Unless you can find a site that you can purchase below market, i.e another developer has to liquidate then I would be interested. But being in WA with a sluggish real estate market its hard to get too excited!