Property development

Hey,
How's it all going?

I'm quite young and I've recently got a nice block of land and I'm wanting to develop it, It's situated on 5,000 square metres.

I've never been in the property game but there's a first time for anything, looking for advice on how to develop this land and flip it for a nice return.

 

Hi @Casey b

Welcome. You have an exciting journey ahead.

Ask lots of questions and read lots.

Cheers

 

Sounds good, however to get a decent response u will have to give a detailed overview of everything involved

 

Sorry, let me add to this post.

The land was worth around $200k (fully paid off), I'm thinking of sub dividing the land into four lots and then placing a prefab house on each of the lots (up for advice on the best size house to sell).

I've only got roughly $100k plus the land to work with, so I'm thinking that I'll have to either bank roll my development or sell of the plan (also again as I'm new to this, I'm open to advice about how to fund my flip)

Someone did a similar thing down the road on a smaller block of land and each house roughly went for $400-$450k each

 

One option is to sub-divide the blocks and sell them off.

You don't seem to have the means to do too much else.

What would a block sell for ?

If you don't make money this way - then building and trying to sell would be too risky.

 

Welcome @Casey b

 

Well firstly, does the council zoning allow for sub division?
What utilities are required? What does the block have now?

The block sounds rural/semi rural and as such often just getting utilities connected can burn $100k+ and thus make the whole thing unviable.

Do a whole lot of research into what can and needs to be done before taking the next step.

Blacky

 

Hi Casey, my suggestion is to repost this in the development section, adding in the suburb (address if your comfortable), planning zones/overlays/title issues etc, the section 32 (assuming your property is in vic) will have this info.

Due to the size of the land, you may not need to get development plans drawn and sold attached to the lots, you may be able to do a 'land' only subdivision, creating 4 lots that are vacant that you can sell (probably with a building envelope, but this will not require architectural plans to be drawn up).

However, as blacky suggested, constructing services so each lot has connections ready could be very costly, ie if a sewer extension is required, it could put a large dent in your cash. You also have public open space requirements of 5% of site value to pay, consulatant fees etc.