How do people find development site

I am struggling to work out a process of finding a development site. What should be logical common process? What has worked for you? For e.g. used Buyers Agent, site referred by someone known, read about it somewhere etc.

Its hard to figure out how to zero in on suburbs, location etc. So i am interested in finding out what kind of thought process(or stages) should be employed to narrow down to particular suburbs and site.

 

Millar's List of Development Sites

 

Study the zonings for the areas you are targeting and know what can be done in those zonings. With the ones I've done neither the vendor or the agent had any idea what they were sitting on. Best to keep it that way! I kept targeting the same types of property so when one came on the market in the right zoning I knew straight away what could be done, how much it would cost and could confidently make an offer straight away.
Damn, I'm getting all excited, the thrill of the chase is the best part!

Willy

 

There are a lot of circular first steps and most of them come down to strategy and finance ability

For example you may say "I want to buy a triplex project" and spend a year looking for a great one then find out no bank wants to lend you 3 on 1 title so you need to spend $60k subdividing it first and you didn't want to do that.

So first it's understanding development finance and it's nuances for scenarios:
1. retain and build
2. demolish and duplex
3. demolish and triplex

Once you know what the banks appetites are then you can work out how far your deposit will take you. Will you be able to demolish and build in one line as you have a nice deposit or will you need to demolish and get new titles then use the new equity to get construction finance.

After that you can work out which post codes lend themselves to your budget. I can tell you that a triplex in Craigie will cost you around the same price as a retain and build in Inglewood and I certainly know which one I would prefer.

Then every site, except for 1, that I've ever bought has been found by scouring re.com and doing many many many feasibilities. I follow 15-17 postcodes that are areas that I like, councils I'm familiar with and price points that suit me and my clients.

 

I should also add, I was targeting one specific type of property in one fairly limited area. Suitable properties didn't come along very often and for me it was easy to get impatient.The more types of property you are looking for over a larger number of areas the easier it will be to find something suitable. I didn't progress to this stage because it also increases the risk and I decided to stick to what I knew. I figured being impatient was better than being broke!

Willy

 

is this updated?

says "As at friday, 25 July 2014"

 

It does have a "contact us" if you want to check.

 

@Rooky This is pretty much all I do to find mine as well.

It started with a few suburbs every day, but that ran out of listings quick, and now I look through every single listing in the state. Its still mostly the southern suburbs I'm more familiar with, but I'm happy to run numbers and dig into the DD for anything with apparent potential anywhere.

 

What type of developments do you prefer?

 

Thanks everyone. I think either paying wellknown BA or what @Westminster and @thatbum has suggested is the way to go.

 

My question is not specific to what i am peronally looking for but more about the search process.

 

Choose an area you want to focus on, know what he done, and find a site suitable and within budget on RE/Domain?

 

I don't know any successful developers that use a BA tbh. They probably exist, but I would imagine most good developers don't outsource their searching since its arguably the most important part of the process.

 

That would probably depend on the type of developer
A builder acting as a developer may use a BA or buy a DA approved project
A desktop developer would more than likely need to source their own projects (then again many have used BA or purchased DA approved sites - and done well)

 

What level of formal pre-purchase advice are you guys seeking prior to pulling the trigger? Town Planner? Designer/Architect? RE Agent?

 

All 3 I'd say, but consult a builder instead of an architect.

 

If developer can do analysis of site and has required knowledge, nothing like that. But as @gach2 has said, either BA service or DA approved site can do as well. I guess it depends on market as well. In rising market you can use DA approved site as many sites will stack up due to rising market. But in declining market, it will be harder to find sites - so BA or own due diligence required.

 

I guess I wouldn't really agree. At best, I think you would just do averagely relying on a typical BA or DA approved site. And "average" isn't really good enough imo, considering all the risks and things that could turn a project into break-even or a loss. You might as well just buy two or three properties instead of trying to develop them.

Personally, if you can't or don't want to do the site analysis and DD yourself, then I don't think you're quite ready for the developing game. Sorry to be blunt.

If you're finding it hard to find a good site, I think its something you should keep practising over time. That's all I essentially did, guided by this forum and some helpful other Perthians on here.

 

There are several companies in Brisbane that only sell development sites..
They target inner city blocks on dual titles with the street numbers in place ,i get letters from these companies every three months ,and most of the sites they find through their letter box drops already have buyers in line so most never come on the real estate sales sites ..All it comes down too in the end is 3 items ..price size location..

 

I've found some of the best sites through my town planner and architect.