Step your way into Property Investment: Step 4
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 FOUR: A GUIDE TO FINDING PROFITABLE DEVELOPMENT SITES
1. Be patient and stick to the strategy you have formulated.
2. Be persistent. Not every site is a winner. Choose a locality that suits your strategy.
3. Use your team starting with a building broker to co-ordinate the people & procedures.
4. Select a suburb or area with potential.
5. Check that the council development plan will allow for your development.
6. Look if there are similar developments already in the area.
7. Assess potential properties against your strategy and viability criteria.
8. Check for potential cost blow-outs.
9. Sloping block.
- Will retaining walls be required
- Trees, including on neighbouring properties. Will they impact on your building site?
- Availability of services ie power, water, sewer, gas, NBL
- Location of stobie poles, Telstra pits, street trees, stormwater inlets
10. Know how much buyers are likely to pay for the completed product.
11. Keep in mind that other than the cost of the land and the stamp duty all your costs to subdivide.
12. Consider using a buyer’s agent to find properties that meet your criteria.
13. Have your finances in order so you can move quickly.
14. Choose a locality that suits your strategy.
15. Let agents know what you are looking for and the price range you will consider.
16. Don’t be afraid to door knock or letterbox properties that meet your criteria.
If you or someone you know is contemplating building, a no obligation chat will cost you nothing and can make all the difference.