Profitable venture - selling subdivided vacant lots in Eastern States?

Discussion in 'Development' started by Hodgo, 19th Jun, 2020.

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  1. Hodgo

    Hodgo Well-Known Member

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    1st Jul, 2015
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    Location:
    Baldivis, WA
    hey everyone,

    I was thinking of trying a new short term strategy of selling subdivided vacant lots in WA to increase my capitol and ultimately servicing. However I may be barking up the wrong tree and this "strategy" may simply not be feasible in WA or anywhere else for that matter.

    Is anyone else doing this right now across East and if so is there any money in it?

    How much ROI % are you seeing?

    Big question this but what's your buy price and in what areas are you targeting?

    ta
     
    Hodgo, 19th Jun, 2020
    #1
  2. Hodgo

    Hodgo Well-Known Member

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    Location:
    Baldivis, WA
    So I'm going to guess no one does this in VIC, NSW or QLD ?
     
    Hodgo, 22nd Jun, 2020
    #2
  3. The Y-man

    The Y-man Moderator Staff Member

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    Melbourne
    It's obviously profitable (given the right time/place), but from what I understand of the projects I have seen it is 1. not short term and 2, very capital intensive. So you need a decent whack of money (or access to through loans) to start with.

    For the shortest/quickest in places like Melb, you'd be looking at the outskirts on the edge of development like Wollert with starting prices of $3m but probably more like $5m.

    You'd need to then hold this while you get all the sub-divs done.

    I haven't done this at a private level, but I have held shares in companies like Stockland (who incidentally divested a big chunk of land without subdividing last year from memory due to forecast development downturn).


    The Y-man
     
    The Y-man, 22nd Jun, 2020
    #3
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  4. Archaon

    Archaon Well-Known Member

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    Location:
    Newcastle
    I'm in the hunter atm and have subdivided land cost about 50k, should be able to sell for 200k, i'll be advertising it for sale whilst I simultaneously talk to a builder about building on it to take advantage of the homebuilder grant.
     
    Archaon, 22nd Jun, 2020
    #4
    Hodgo likes this.
  5. Willy

    Willy Well-Known Member

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    Location:
    NSW
    I would suggest that it can be profitable everywhere if you can find the right properties. That's the trick, finding the right properties. And even once you have identified something that works in a particular area not every property that can be subdivided will be worth doing. In the area that I have done them one seems to come up about every two years and then not all of them are viable.
     
    Willy, 22nd Jun, 2020
    #5
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