Development feasibility when Sydney has bottomed out

Discussion in 'Development' started by mike7575, 15th Dec, 2018.

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  1. mike7575

    mike7575 Well-Known Member

    Joined:
    16th Jul, 2015
    Posts:
    52
    Location:
    Eastern Suburbs, Sydney
    Hi all,

    I'm a long time lurker/new poster to the forums and am looking to get more involved.

    A couple of questions for the more experienced developers who have maybe seen a cycle or two.

    Obviously Sydney is dropping considerably and will most likely continue to for the foreseeable future.

    Hypothetically, let's say it bottoms out in mid 2020..

    How would you go about assessing the potential risks and feasibility of development sites? (think standard duplex, triplex sites)

    As well as this are vacancy rates generally at their highest at the bottom of a downturn?

    Ideally, I'd like to complete a duplex or triplex development in 2020 and be able to sell 1 and keep the other 1 or 2 and move onto the next deal. I will definetely have more than enough cash by mid 2020 to do this (and a healthy buffer for any contigency costs as a first time developer).
     
    lixas4 likes this.

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