sub divide

[straddiebrad]

thinking of dozing the house and putting units up anybody done this before ,is it worth the hassle any info would be great.brad

[Do$tylz]

...are you looking at subdividing?? or demolishing the whole thing to then build units over?? whichever way you look at it, you'll be looking at ~30k for council approval etc alone.

[straddiebrad]

yer mate get rid of the house and put units on the block maybe 6 units.brad

[Do$tylz]

We've built behind a house in Inala, and we're just saving some cash up for building townhouses behind a property in Annerley...

My g/f used to work for a good town planning company if you wanna get in contact with someone to talk about what is possible

[Do$tylz]

hows the zoning that you're on?? and how close are you to the city??

[Angus]

Mate used to sell and deal in this a bit when working in Real Estate.

In fact the place I am in now we cut off the block at the back and sold it off. Sold the vacant block for nearly as much as the whole thing cost to begin with. Good business

AFO member Boydy is also a Guru at this. Lives and breathes small residential developement.

Jordan is pretty up to speed as well having worked in this area for Coronis.

We actually met up by doing a sweet deal that worked out very well for the both of us.

My number one peice of advice: RESEARCH RESEARCH RESEARCH.

Can the house be removed?

Is the zoning suitable for units?

If so how many?

Estimated building costs of units?

DA (Developement Application) costs and time length for approval?

BA (Building Approval) costs and time length for approcal?

Additional council fee's?

Additional plumbing, sewerage to the block?

How much of the land can you build on?

What are unit sites selling for in your area?

Is it a high growth area?

And there is a lot more.

I would be happy to help with this research but as im no longer in real estate I dont have access to the various online sources to conduct the research. I can check with Boydy though?

Bottom line, a lot of people decide one day to develope something and dont factor in half the costs and end up spendin a lot of time and energy to only break even or even lose money. Not saying you would do this, just saying make sure everything is squared away well

Angus

[straddiebrad]

my house is in logan and where i am there are new units going up three blocks down a bit,we are right near a train station and a school 10 mins to browns plains shopping center,just wondering if its worth the hassel or just sell it and let someone else do what they want,the house is in pretty good shape,looking at my options.brad

[Tybo]

Sounds like you will be right with zoning Brad, but all I can say is the stress of having to deal with about a dozen different departments is enough to pull your hair out. I went through 20 months of beauracracy to get development approval in Hervey Bay, and I consider myself lucky.

The guy across the road bought 5 acres with plans to subdivide. Before he could get his plans in, the area was re-zoned and then wasn't allowed. He fought HBCC and won but cost him over $60K in legal fees, then they slumped him with $130K in subdivision fees. Plus a mandate that he had to provide this, and create this, for the future residents. All this to create 5 x 1 acre blocks. When the downturn in non-estate residential land blocks(due to banks requiring 10% deposit on these loans), he was only able to sell two for just market value. He still has two, and almost can't give them away. But this was Hervey Bay, and the council up there is well...

As for down here, my mate had a house at Banyo on a quarter acre and was going to subdivide. After doing his figures, fees and services(not including build cost) for two town houses to be built on the block was near $130K. To get approval he also had to pack the build site up 800mm because it was in low lying area. In the end he sold the house and block as is, picking up $100K in capital.

I hate to sound negative with these stories, but I honestly believe what Angus says, have it all down on paper before you do anything. It's a big step.

[straddiebrad]

thanks for the info guys it is very helpful.brad

[Jordan]

Yea i sell the shit out of these properties, the last two months they have been flying out the door. they literally sell everytime before they hit the internet.

There is potentially more money in it if you do the project yourself, however this is only if you do everything in the most cost effective way and if you know what your doing. i certainly wouldnt advise taking on doing a 6 pack if its your first development... it's alot different to doing a house. also, Townhouses are generally better to do. I'll write you a pm as to why later on...

Make sure you do your research. the market is fantastic now, may be a good thing to take advantage of it as i've just come back from a conference in noosa and they have said the end of Q1 in 2010 is not going to be good for finished stock.

How big is the block? whats the zoning?

[Feral]

Good Idea, dunno about the timing, I'd be leary about dealing with any building mob at the moment unless your very sure of their solvency. Wont do you much good if the builder goes bust and leaves you with a pile of mud.

[Jordan]

Yea tybo i heard BCC is one of the worst councils to deal with, second only to Hervey Bay.

I make a living out of unfortunate people who do feso's, get excited by the whole prospect then get hit by all these hidden and questionable fees which just throws their end figures out the window and they are forced to sell to someone who picks it up at a steal...

[straddiebrad]

might just end up selling the house i got it for a good price ten years ago and its just under an acre so its a big block.brad

[Jordan]

Have you spoken to a townplanner? they are usually really helpful with what you can do, and local real estate agents should be able to give you an idea on how well finished stock is selling at the moment.

[straddiebrad]

Jordan wrote:

Have you spoken to a townplanner? they are usually really helpful with what you can do, and local real estate agents should be able to give you an idea on how well finished stock is selling at the moment.

have not done anything yet just been looking at options.brad

[Sparksie]

Hi Brad

Jordan's sugestion and Angus's comments are all part of the package here...

Being with Council, the service in place is you have the opportunity to speak with a Town Planner over the phone or come into a Council Office (Regional Business Centre) to have a 15 minute appointment to discuss your options at no cost.

It might be worth giving that a go....

[Jordan]

Yea at least consider doing, i dont want to talk you out of it. if you pull it off you will make incredible money. a client of mine made 900k profit off her first one (four townhouses in morningside) do you think she kept up her shitty full time job after that? not a chance. she does it full time now and makes a fortune. its addictive if you make it work and get some cash out of it. do some research and make a decision afterwards based on what you want to do, not what everyone is telling you to do

[Do$tylz]

^^ That's what I'm working on. 35 and retired baby...

[Rocket75]

hey Brad, let me know if you want some advice on the finance side of things. we've helped others in similar situations. just send me a PM and we'll get together to give you some ideas.

rocket

[kiara_poltegerist]

Do$tylz wrote:

^^ That's what I'm working on. 35 and retired baby...

hahaha.. crap.. looks like i got lotsa catching up with you to do man. hehe. i've got my eyes an a S2000 too now. hehe.

[straddiebrad]

i will most likly sell after xmas have enough to buy another house out right and a little change for fishing gear and the wife has the rest,reason for selling is to have no more payments on the house and the intrest,i figure why pay the house of for years when i can sell buy another property and have no bills,as soon as i do this i will have three day working week,more fishing time ,thanks again for all the great advice.brad

[Davo_Dinkum]

i like your thinking brad .

we have thought about selling and moving cause we need a bigger house but the kids are getting older 1 has all ready moved out so a few more years and 2 or 3 more will move

.no point in a big house and large repayments once they are gorn.

also thought about selling and re buying so i owe nothing but would have to move out to the sticks to do that ,and if i'm in the sticks i want a river or dam and 50 acres at least .which makes it further out and more $ and so on.

so atm the plan is stay put and in about 10 year this place will be payed off .

and i only have to work about 3 or 4 day a week atm to keep my head above water ok.

reading this thread u can see how some started young .

and had ideas ,plans,motivation and ambition etc .

[straddiebrad]

too right mate i will be looking at a 400 plus profit at the moment so now all the kid have gone bar one its time to get somthing smaller before they move back.

[Davo_Dinkum]

i have 7 so 1 down 6 to go youngest is 5 so prob about 11 to 15 year and they will be all gorn ,can't see any of them staying on longer than 20's year old.

15 year i will be 51 ,well that ok still young enough to fish and travel.

should of stopped at 4 kids,then i would be kids free at 44 .

well that was my original plan.

but guess it can't be helped that i'm a young viral man ,with a hunger .lol

[straddiebrad]

Davo_Dinkum wrote:

i have 7 so 1 down 6 to go youngest is 5 so prob about 11 to 15 year and they will be all gorn ,can't see any of them staying on longer than 20's year old.

15 year i will be 51 ,well that ok still young enough to fish and travel.

should of stopped at 4 kids,then i would be kids free at 44 .

well that was my original plan.

but guess it can't be helped that i'm a young viral man ,with a hunger .lol

broken tv doesnt help :laugh: or a power outage

[Davo_Dinkum]

lol yeah .

my bro reckons i just go to the big game to much .when i should be practicing for the big game.

i thought about trying to make money out of it .

something like i would service them once a week for a month and if not knocked up .

i give the money back .

either way i don't lose .

but i'm just not pretty enough for it to work .

oh i remember the last decent power out we had ,was a great night .

went to mates about 5 min up the road ,2 hrs drinking .

power goes out .mobile start ringing.

to much to drive home ,so walk with some roadies.

get home get a few of the battery lantern's and gas ones .

put them out the front .

power out street party .back on the piss .

power was out all night was a bloody great night .