Looking for possible development e.g. subdivision at budget

Hi all, currently planning on my first project, anyone have a good idea about what area in NSW and what type of project should I look at. As I'm only on a budget of 200-300k
Reading a couple of threads our experienced investors here seems to having millions of dollars in cash is that the case, unless you have considerable amount of cash forget about any potential developments
Appreciate your thoughts

 

How do you guys think about this one for subdivision
8 Frederick Street Blacktown NSW 2148 8 Frederick Street Blacktown NSW 2148 - House for Sale #129217762 - realestate.com.au

 

This one too
19 Charles Street Tingira Heights NSW 2290 19 Charles Street Tingira Heights NSW 2290 - Residential Land for Sale #202103030 - realestate.com.au

 

Here is another one
39 Boundary Road Pennant Hills NSW 2120 39 Boundary Road, Pennant Hills, NSW 2120 - Property Details

 

With a budget of 2-300k, don't waste your time. But you got an even bigger problem than budget atm . Your basic knowledge of developing isn't there which means your risk of losing money is quite high .

Rule #1 never lose money . Rule #2, never forget rule #1. Warren Buffett.

Tread carefully.

 

Ahhh.. In the regional areas like Newcastle is out of reach as well?

 

Hey frankxu,
How did you go from posting a budget of 300k to listing a property that sold for over a million?

 

300k would be a deposit, will get a loan from the bank.
Apologies if I cause some misunderstanding

 

Not yet I'm still at this very early stage, just looking around so to speak

 

If that is your deposit then it would be a good idea to talk with a broker and find out how much you can borrow based on that. In theory developing needs around a 20% deposit under residential lending terms but you might not qualify for that amount with serviceability. So a 200k deposit might do for a total development cost of $1m, $300k for $1.5m.

 

Don't forget the good ol soft costs.

 

do you have a PPOR?
If not have you considered a PPOR which is within your needs and possible financially.

My first development was my PPOR and while it all went well, profit was not 100% priority so it gave me ease in making a few mistake and learning from it.

First thing to do is identify an area you want to develop and learn the LEP/PLANNING SCHEME. Also research and see what others have done and what its costed them.

If you want a low risk investment for the first projects look into Adelaide (seen some projects < 200k) and Logan (completed 2 in the low 400s) While the adelaide ones didnt have much profit and in my opinion Logan isnt worth the time for the money i made it did teach me a lot and while there are differences between local council rules, a lot of the fundamentals are still the same

Good luck with your future project and sometimes the best way into it is falling deep into the water and swimming out

 

Who are you working with on this and what training have you done? If you haven't already done this then the best thing you could do is pay for a mentor with has demonstrated significant experience in doing lucrative developments, pay for their mentorship and JV with them or one of their other students. Put some money in to get the education you need at the beginning and you'll come out way ahead vs so many inexperienced investors who jump in with no idea and end up getting burned. There is serious potential to lose a lot of money here, not to mention the time spent and the emotional fall out.

 

Thanks guys for your inputs, as for a mentor, I'm not sure where to find one, actually surprised a little that you can pay for someone's mentorship.

 

Well lucky you asked your question here then! Google Rob Anderson, Property Mastermind. I'm sure there are others but he has a very good reputation as far as I can tell. It's not cheap to do his mentorship but the fee's tiny compared to what you could end up losing if you jump in blindly on your own. You can lose money on every step of the process from buying the development site all the way through. That's why you should pay for a mentor.

 

Don't let Bob find out you've changed his name.

I did his course awhile back and I found it worth the few thousand we paid .