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Developing from a distance

Discussion in 'General Property Chat' started by Melbpositivegeared, 8th Mar, 2016.

  1. Melbpositivegeared

    Melbpositivegeared Well-Known Member

    Joined:
    23rd Jan, 2016
    Posts:
    72
    Location:
    Melbourne
    Hi guys,

    I've come across a potential development deal 4 hours away from Melbourne. (I live in Sydney and have never developed before)

    There is a house sitting on the front of the land- I can purchase slightly positively geared.

    I would then look at a sibdivision to build 2 units on the back- and then I have Te choice of knocking down the house and putting another 2 on the front- or keeping as is.

    Alternatively there is a very conservative $60-70k profit in the deal if I subdivide off the 2 blocks on the back and sell the land with plans.

    There is a 32% return if I take on the development leaving some good contingency in the deal. However this would be a first and I'm unaware of what challenges I may face barely visiting site.

    I'd love to get some thoughts and ideas
     
  2. MTR

    MTR Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    7,335
    Location:
    Perth, Melbourne, USA
    I live in Perth and almost completed my 4 townhouse project in Melbourne, search Thomastown will give you some info.

    If you are subdividing land potentially easier, shorter time frame and no build involved or holding costs.

    just make sure your feasibility figures are correct, end values and there is a demand for the blocks/size etc

    Have you looked at sales figures and contacted many agents in the area?.

    All the best

    MTR:)
     
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  3. Leo2413

    Leo2413 Well-Known Member Premium Member

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    18th Jun, 2015
    Posts:
    5,727
    Location:
    Sydney
    Vital. That will be the do or die right there.

    Also make sure its actually permissible to build the stock you need to on the site. Personally, I wouldn't buy anything without talking to a town planner first to get a very good idea.
     
  4. melbournian

    melbournian Well-Known Member

    Joined:
    2nd Sep, 2015
    Posts:
    1,319
    Location:
    melbourne
    Go to vic dept of planning websites to check the zones. There are diff rules for different councils vegetation overlays, contributions, site coverages, setbacks, heights, permeability etc
     
  5. Melbpositivegeared

    Melbpositivegeared Well-Known Member

    Joined:
    23rd Jan, 2016
    Posts:
    72
    Location:
    Melbourne
    Thank you. Yea I've spoken with just the one agent at present but will get more opinions. I've spoken with the councils town planner- I did have a private town planner I was speaking to, but have since engaged another one as I felt the first seemed too aggressive in what he believed I could achieve without the foundation to back his figures. Google seemed to suggest he was a local, however I've now been strongly recommended one who knows the area back to front :)
     
    MTR likes this.