Splitter six neighbours

Discussion in 'Development' started by The lucky duck, 10th Jan, 2020.

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  1. The lucky duck

    The lucky duck Well-Known Member

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    Hi

    I like a splitter block but it has three downsides

    1. The current house is on both blocks
    2. There are six not three neighbours
    3. It is a very small narrow street
    4 there will be no view

    it does face the right way ie living areas at the back are north facing driveway to south

    it is in a quiet area

    it is well priced.


    What do you think!?!
     

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  2. Morgs

    Morgs Well-Known Member Business Member

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    What do the numbers look like?
     
  3. The lucky duck

    The lucky duck Well-Known Member

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    It doesn’t yet stack up.

    710k purchase
    60 subdivision
    Each block 420k
    Build cost $400k each
     
  4. thatbum

    thatbum Well-Known Member

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    Umm, who cares about those 4 things?

    What do the numbers look like?
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    What's a new house worth in the area?

    Would you get 3 on the block - 20 x 10m across the back and the other two split equally?
     
  6. The lucky duck

    The lucky duck Well-Known Member

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    No. The new builds would be 660 each. With costs of almost taking all the profit if 400 each block with 300 build.

    I was really intersted in the neighbour numbers as I’m keen to do some splits. Maybe not this one.
     
  7. willair

    willair Well-Known Member Premium Member

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    When you look at the block and the 4 that have already been split next to lot 13 then there would be money in the deal if you were to just turn the house around once the block is split ,then just sell of the other block..
    Just my opinion if this is in Brisbane the subdivisions cost may well go above 80k,then as there is no street view power supply would be another item to factor in depending on the area and looking at those old gable roofs then this is a old area..imho..
     
  8. wylie

    wylie Moderator Staff Member

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    Our project has been way more expensive than anyone estimated it would be. I’m quite sure a developer would not have taken on our project. If we were building to sell for profit we would be in trouble (we would have sold with the DA instead).

    I would suggest you run the numbers with a developer, project manager or quantity surveyor to work out if it is worth doing.
     
    Marg4000 likes this.
  9. Sackie

    Sackie Well-known cafe bum of the East Premium Member

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    If you don't know how to do a proper feasibility then I wouldn't be looking at developments tbh. You'll likely lose a lot of money with your current level of knowledge.
     
    Last edited: 11th Jan, 2020
    Bunbury likes this.
  10. The lucky duck

    The lucky duck Well-Known Member

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    yip. That’s why I am here
     
  11. Sackie

    Sackie Well-known cafe bum of the East Premium Member

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  12. SOULFLY3

    SOULFLY3 Well-Known Member

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    Hi @Sackie
    Think of grabbing the first book mentioned
    Its dated 2005 is it all still relevant?
     
  13. Sackie

    Sackie Well-known cafe bum of the East Premium Member

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    The broad framework hasn't changed much so I think it's still a good book for that purpose.
     
    SOULFLY3 likes this.
  14. SOULFLY3

    SOULFLY3 Well-Known Member

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  15. The lucky duck

    The lucky duck Well-Known Member

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  16. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    @SOULFLY3

    There has been a few updates since then so you might as well get the more recent one
    Australian Residential Property Development for Investors : Ron Forlee : 9780730315094
    He's just written a new book that came out a couple of months ago - I haven't read it yet but it might have some info for you if you are getting the other one Fast Track to Passive Income : Ron Forlee : 9781925952308
     
  17. SOULFLY3

    SOULFLY3 Well-Known Member

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  18. Sackie

    Sackie Well-known cafe bum of the East Premium Member

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    @SOULFLY3 if you're wanting to part with 5k for two Ppl, Bob Anderson does a good 3 day course. No holy grail but a very good starting point if your interested to develop.

    Not absolutely essential....but then neither are investment books..
     
    SOULFLY3 likes this.

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