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thoughts...

Discussion in 'Development' started by Nathan Simon, 29th Oct, 2015.

  1. Nathan Simon

    Nathan Simon Well-Known Member

    Joined:
    27th Aug, 2015
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    Location:
    Gold Coast, QLD
    There is a DA approved bit of land for 53 dwellings in upper coomera I am trying to get my hands on as current stock.

    Has 2 commerical spots out the front with woolworths possibly opening a servo. 13 small pieces of land out the back which can have houses or townhouses/duplexes and the rest are ready to go for whatever.
    Plans are yet to arrive in email but they're after over 4 mil.

    Any developers have thoughts on price?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Location:
    Sydney or NSW or Australia
    EOI if you have NFI as an agent
     
  3. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Location:
    Perth
    What is the DA actually approved for? Mixture of built form and vacant land?

    How large are the commercial spots? Have you spoken to any commercial leasing agents about what else could go on them and Council to see what is allowable in the zoning? Did the REA say that Woolworths are interested? There is interested and there is interested.

    What does 'rest are ready to go for whatever?' mean? Does this mean that they have a specific DA for a built form of townhouses already DA or that they are a number of options for those blocks.

    Has any infrastructure work been done? Roads, services, drainage etc?

    How large is the actual piece of land?

    What is the time scale expected for such a project?

    How much would is cost to build such a project?

    What is your strategy?
    - buy and subdivide then sell of lots with individual DAs?
    - ground lease commercial and hold?
    - build commercial and hold?
    - sell some land off, retain some?
    - structure
    - finance
    - risk (the higher the risk, the larger the profit you want to make)

    I can't say whether $4m is good or bad. I have learnt that with commercial the easiest thing is to work backwards. For example if I buy it at $4m + infrastructure/council/ammenities/construction/consultants cost = $X
    Is the price of comparable end value products ($Y) able to give you the desired profit $Z

    $Y = $4m + $X + $Z

    Note that contingency buffers on something like this tend to be pretty huge.
     
    LifesGood likes this.
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Location:
    Perth
    Oh I totally misread that? You want it as a listing and want to know if the Sellers desired sale price is in the ball park?

    To be honest if you don't know it's value you probably aren't the best listing agent for it.
     
  5. Nathan Simon

    Nathan Simon Well-Known Member

    Joined:
    27th Aug, 2015
    Posts:
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    Location:
    Gold Coast, QLD
    I haven't recieved info yet. There is an agent currently on it supposed to be sending me the plans and details.
    Until I get that info it's hard to tell so thought i'd put the question across to developers themselves.