Hoping to start something big

Hi All
Completely new to this website, i wish i had found it earlier because the information on here is incredible and would of saved me alot of time. I see i am going to be spending alot of time on here and will be getting very active with conversations and being a consistent contributing member so ill introduce myself before my question.

I am for melbourne, i went back to uni after a few years in real estate to study Architecture and Construction management at Deakin to gather as much knowledge as i could to begin my own development company, I have one year left of that course so now its time to begin the next steps.

I bought in officer a house and land in early 2016 understanding that the redevelopment of frankston would mean than anything in that corridor would boom.
I purchased a 4 bed 2 bath 2 living site for 390k, i then refinanced and pulled out 30k to do improvements such as landscaping and external works like a pergola and other amenities.
It is now on the market for 580k with that being around the median price for a house of that size.

This will leave myself with around 130k to look at the bigger development such as a sub divideable block. I understand that if you want to create a successful development company that you begin small as it does not happen overnight.

The plan was to always hold onto property and leverage equity but after doing research and find that officer has only dropped 1-3% and other areas that are prime sub divide locations such as kilsyth, lilydale, mooroolbark in the east of melbourne are around the same price ranging from 500-640k which 500k representing a knock down and 640 representing a small reno on 800-950m2sq blocks, So would be decent backyards or potential for 3 units, Each land presents different possibilities as the location varies with demand. we are at the bottom of the trend with prices beginning to trend upwards so great time to buy i believe.

Pretty much i understand the basics of what is required when it comes to sub division but i guess for me its understanding the more complicated things and more indepth in relation to costs so i dont under estimate, I would also love any sugesstions on apps and programs that can work this out for me. I do know being in real estate for a few years that programs cant predict trends and thats research based but things such as build and sub division costs, relocation of services would be great to have a point of reference for that so i dont under estimate.

 

You dont pay capital gains if its your PPOR for 12 months do you ?

 

What is your plan to get finance?

 

Well right now My partner is full time and i am part time so i can only borrow portion A which will cover the house and land, Savings will cover reno and Sub Division. Once i become full time my wage drastically increases which will allow me to cover to build costs.

 

Sorry my apologies, I should have been clearer about it all.
Also would like to mention that i work at a property developer part time whilst i finish my course and will do so into the near future so this is all a side project until i ave the equity and experience to make it feasible enough to become a full time gig.

 

Trainee is on the money - I think you need to invest some time and understand how finance works as it plays a huge part in what you want to do in the future.

Once you do into multi unit development then you will face restrictions in terms of which lenders you can use and more importantly LVR's and deposits required. I did a finance development guide and its somewhere on the forum - check that out and that will give you a good template to use when looking at deals.

 

Awesome thank you I will try and find it. If you come across it, if you could link that would be great

 

Not sure how you can marry the two up (Frankston and Officer)?

Two totally seperate markets. I live in Berwick and know all these areas fairly well

Cheers,

 

By the redevelopment of frankston being known as the south East Central hub anything in the corridor from Dandenong to Frankston benefited as the aim is to try and use frankston as a geelong. This created a demand as people were now happier to move further out from Melbourne as essentially they would be living between two main points of victoria.

I understand that people claim that this is just the property bubble moving out on both sides, but looking at the western suburbs where the default rate is incredible compared to south east due to settlement land valuations compared to purchase valuation shows that its not the only factor