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Lack of comparables

Discussion in 'Development' started by Logan, 10th Oct, 2016.

  1. Logan

    Logan Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    146
    Location:
    Sydney
    Hoping for some development advice. I'm looking at a new project site to split and sell or split, build two houses and sell one. There are no comparables for vacant land or new houses in this suburb and surrounds. I'm having trouble making the numbers work as it is hard to judge what the new houses or vacant land will sell for, I am also concerned it will be hard for valuations. On the plus side, the site should be straight forward to split and is close to amenities.

    Should I keep searching ?

    This site is south of Sydney - anyone else developing in this area ?

    Thanks

    Logan
     
  2. wombat777

    wombat777 Well-Known Member Premium Member

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    Location:
    33°41'24.7"S 150°55'34.3"E
    I think you need to be more specific than 'south of sydney'.
     
  3. Stoffo

    Stoffo Well-Known Member

    Joined:
    14th Jul, 2016
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    Location:
    Sydney
    An old place near me on some 1800sqm sold near me for over $1.7m recently. o_O Sutherland
    Don't know how they expect to make money :confused:
    Demo old place, subdivide into 3, build 3 town houses, sell for a mill each, "where's the profit" ? :oops:
    Only way i can see it happening is long term hold, develop during next quiet period, sell during next growth cycle :rolleyes:

    Surely you can work out that if a comparable property 15 min drive closer to city price is "X" then yours would be 5-10% less.
    There isn't "much" South of Sydney that doesn't have development some where (or are you talking about an area down the south coast ? )
     
  4. Logan

    Logan Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    146
    Location:
    Sydney
    I am looking at the Illawarra area outside of Wollongong. The site is still for sale and is not being advertised with it's full development potential.

    Is anyone else developing in this area ?
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Location:
    Sydney or NSW or Australia
    There are always comparables or at worst metrics which you can use. Most developed areas have few if any sales of vacant land.

    If it's being advertised at less than potential then you may pick it up at the right price.
     
  6. MTR

    MTR Well-Known Member Premium Member

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    Location:
    Perth, Melbourne, USA
    They don't make money because the are buying at peakvwith the assumption end values will increase, no logic, easiest way to lose money