Which development strategy would you choose?

This is probably true, but why not just spend more time looking for that one in a million site that is at the right price point and has the higher margin?

That's pretty much my own developing strategy.

 

Doesn't your location have like infrastructure charge/headworks from each of your utility for the additional power connections, additional sewer connections etc? In Perth it costs like $7500 per block just for additional sewer/water connections and that's just for the right to have the additional connection it doesn't include having a plumber actually do the cut in

 

Section 50 with Hunter Water, no infrastructure charges apart from the cost of shutting down power to connect, as well as private pole if needed.

My last subdivision cost about 30k, all works completed and a 14k contribute.

Hunter Valley region NSW.

 

I need to develop in the Hunter....

 

There was a house that a linked in a previous thread that was good for 3-4 units down the back and retain existing house for around the 400k mark.

Better then say Mackay, might need to purchase transformers and 28k contribution per new lot created.

 

Generally, for a project under two years, you would use a static cashflow a Discounted Cashflow (DCF) is overkill. Estate Master is a good software package that the developers use for DCFs. If you are doing a presentation to a bank for finance they like it in this format (you can export to Excel too). They used to have a month trial so you can play with it and see how you go, it has good training as well. The market can change a lot in 2 years I’ve been caught out on a project so sometimes getting in and out quickly is less risky. Or at least look at the rental income if you are left holding the product.