Step your way into Property Investment Series: Step 1
People need somewhere to live. You can profit by meeting that need. To do this successfully requires research and following a proven formula. Below are two ways to make money from property:
- Subdividing and developing an existing property.
- Buying, subdividing and developing a new property.
This four part series will outline the formula to guide your through Property Investment. If you already own a property that is suitable for subdividing, congratulations! You’re halfway there.
STEP ONE: CREATE A STRATEGY
- Only build what the market will pay for, not what you’d like to live in. Keep the extras for your own home.
- Focus on your end target, is it building to sell or building to hold. Make sure that your product appeals to a broad cross section of which ever segment you choose.
- Determine what price you can sell the finished product for before committing to buy. This also applies if you are choosing to hold.
- Calculate: buying costs, finance cost, interest, demolition, plans & approvals, subdivision.
- Add in the cost to build, marketing costs to sell, a contingency factor, professional advice.
- Allow for a realistic profit margin.
- Now you can calculate how much you can afford to pay for the property.