Hobart small scale development/subdivision

I have been really interested in learning about active investing strategies (basic subdivision/small scale resi development) for a while now but reading books, forums, podcasts etc aren't resulting in too much action at the moment, and one of my New Year resolutions is to be proactive and find people I can learn from to start taking action!

I have recognized that the best way that I learn is by speaking to people and am on the look out for anyone that has been involved in small scale resi development/basic subdivisions in the Hobart and surrounding areas to discuss my personal situation, potential strategies for the future within the Hobart market, feasibilities, financing etc etc.

A little bit of back ground about us, we have a mortgage on an OOP in Hobart, as well as two buy and hold investments in Brisbane.

Why resi development/subdivisions? I have three reasons:

1 - I find it extremely interesting.
2 - I want to develop strategies that I can employ to build wealth into the future.
3 - Raise capital to upgrade OOP in the future.

Buy and hold is great and I definitely want to continue to build a portfolio, but I am not the sort of person that can sit on my hands and wait, and would love to develop some add value strategies that I can use to build on what we already have.

If there is anyone out there in the Hobart area that I could buy a coffee and pick your brain please feel free to send me an private message.

If anyone has any ideas about people I could contact also please let me know.

All help appreciated.

Tom

 

Hi Tom
I don't know if there are any Tassie developers, however I would recommend you look at posts regarding developing under this heading and also threads on PC regarding Tassie perhaps you can link up this way?

I am a developer and I would recommend start small, look at areas in your own State where developers are currently building/developing. When I say start small it could be a house and build a new property at rear or a block and build (house and land)

Look at what developers are building, start with lower entry level generally you will have a larger pool of buyers if you sell. Easier to get finance, lower risk if you can not sell.

I recommend you don't reinvent the wheel, copy those that have the right formula, by this I mean developers that are building and selling and getting it right. Make sure you also contact re agents in the areas that interest you, pick their brain, what is in demand, what is selling. Make sure you build what buyers want

 

Uni precinct has the smallest density in Hobart without paying maximum dollars. I'd start there.

 

Thanks for the advice @MTR. I have read a number of your posts, very interested in how you go about it.

This is basically exactly what I hope to do. Initially, I want to do 'basic' deals like a subdivide and sell both, cosmetic reno subdivide and sell, maybe then with a build at rear too. The one thing I am really keen to get confident in is understanding the costs so I can actually decide whether a deal will be feasible. For example, what does it cost to subdivide a block into 2? $15-20k? I have no idea about these things. If I chose to subdivide and build, whats the standard build costs? What are the extras and how much do they cost i.e. driveways, council contributions, planning fees etc. Obviously the answer to these questions is 'it depends' but I'd like to gain some confidence when looking at deals. I have read a decent amount and listed a number of these costs, although, I am certainly not 100% confident in their accuracy. Can lesser priced properties be profitable? I don't want to do a deal that doesn't profit!

This is exactly what I am trying to do. But the issue is finding someone who has 'worked it out' and copy them.

As in Sandy Bay @Aaron Sice? What exactly do you mean by 'smallest density'? Being a really established suburb i'd assume the blocks suitable to work with would be on the higher side $$$?

 

Sorry poor terminology - smallest lot size density.

My comment is through the eyes of value-add and possible subdivision.

 

Hi Tom, just saw this post and am interested to know how you got on. I'm on a similar journey and wondered if you found any helpful contacts or resources in Tas ? Rgds, JJ

 

Hi @JJD,

Sorry for the delay. For a number of reasons I decided to change tact and didn't proceed any further with my ideas. Good luck with whatever you decide!

 

Hi @JJD
we are looking at attempting a small subdivision in Hobart next year. Would love to hear how you’re going.