To develop at the beginning of recode or wait it out.

Hi everyone.

I have a question for you all, I have a property that I have owned for quite some time. I bought it as there was always talk of development and recoding in the future however that was 5 years ago now.

It seems that things are finally moving now and the recode looks set to happen in a year or so. Fingers crossed.

My question is this what would the experienced developers here do would you try and push plans through and be one of the first developers to take advantage. Or wait and see how the market looks and what others are building and what type of development the public is interested in.

Please note I'm not in financial trouble the property is healthy and cash flow positive, however the increase in equity would be a welcome sight after the past 5 years in the Perth market.

I look forward to some people's ideas. Thanks

 

Usually my strategy at the time, along with the numbers, would dictate whether or not to develop. Whether or not I was first off the rank for an area would be a bit further down on my list of relevant factors.

I suppose if I had to guess though, its a slight positive to be in before the others (unless everyone else is thinking the same thing and a bunch of the same product will hit the market at the same time).

 

As long as the end sale value minus total development costs looks very healthy, and my town planner and council give me the 'go ahead' in terms of permisibility, then i would just dive in.

I would be looking to develop what is going to give me the biggest bang for buck, considering the area, demographic and sales data.

 

Thanks guys.
My calculations so far would mean that I would be going for 6 2 bedroom units as a multi development site. This is new to me and is definitely new to this area so that's why I'm a little stand-offish. This being said my 1 bedroom, granny flat on the block is usually the first one to rent out so hopefully that is a good sign.

I'm also happy to leave it for a few years and start on another investment somewhere else.

 

Based on that scenario, get the building envelope approved as 6/2 then S96 amendments for 10 x 1 bedders or studios.