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I do want to make money, but it doesn't need to be immediate. Is my strategy of building 2 houses from a subdivision and keeping the houses and renting one out too much of a pipe dream? I still don't see the linkage between my intention of keeping the houses and making a profit.

Thanks for the feedback devo. It's good to hear from someone who's actually done something similar. So the property you purchased had a house and a granny flat on there and the backyard was big enough to subdivide and build on? Did you sell the newly built house? Also, if you dont mind me...

That is definitely an upside. Instead of living in a rundown house which i would probably have to renovate, i will have one that suits my taste and brand spanking new as well. This is not a problem with me at all. Living next to tenants is a plus for me. I wouldn't let them know that i'm the...

Yes i understand. And you are right. Yeah I'm taking it in. Thanks for the advice. It's much appreciated.

Ok thanks.

Since when did i say i'll end up with 2 for the price of 1? You misunderstood. What i was trying to say was that i would rather end up going through all the headaches for 2 constructed properties over the easy road of simply having 1 property. I did not say i'd be ending up with 2 for the price...

If they are both going to give me the same amount of profit, i'd say the headaches are all worth it when i end up having 2 properties instead of 1. By the way, are ALL developments headache free? Also, I thought that properties are appreciating assets. So whether i choose to construct 2 houses...

I'm so confused. What is the difference between a development and an investment? Aren't they pretty much the same thing? Developing just involves the act of constructing the buildings - i'm still essentially investing for their construction and thus future capital growth/profit. I'm not looking...

I see. Thanks for the clarification westminster.

Is an immediate profit usually required to justify an endeavour such as this? My intention was to make the first house as my PPOR and the other as a rental. If i can afford it, why not? I want to set myself up in the long term and create equity. Isn't this what investing is all about?

Thanks for the advice Rockstar. I have heard similar advice from others as well with regards to letting the bank know of my intentions. I will be talking to brokers with regards to my capacity. Thanks.

There isn't money in the whole deal for whom though? Me or the bank? What's it to the bank if there's no money in it? If i can pay them back the loan, isn't that all they should be concerned about? Who's concern is this total cost of 710k? Mine or the banks? If i paid 50k for the deposit and...

I apologize but i still dont follow. I understand that i would be borrowing 200k for the first and second builds. Which is why i thought that if i only build 1 house to start off with (which would probably take as long as the subdivision to be approved), then i can use the equity from the...

I'll most definitely let them know! So if the bank values it on the land and the construction of the 2 houses, does that mean the unsubdivided land with the original house? So the value would be original purchase price (250k) + price of 2 houses (200k) = 650k? I'd be very uncomfortable having...

Aaron, would the contruction loan be for both houses all at once? Or each house separately? i.e. in between subdivisions? If it was for both houses, i doubt i'd be able to afford the entire loan. And you wouldn't be able to leverage the equity from the subdivided land would you?

Thanks TFS. I'll definitely get in touch with the townplanner when i do find the property i want.

Hi all, I have an overall goal. It's basically to find a property (vacant land or house), demolish, subdivide in half, and build 2 houses. I want to know if my thinking for funding this project is correct. I'll use rounded numbers and make it very very basic to make things simple. Say i...

Yup i emailed him already :) It definitely is like card games! The situation i described in that thread though was a weird one. Traditionally, i thought that if you offer the asking price, the vendor or agent would be happy and sell straight away. Also, i thought that when the vendor gets...

Ah I see. I dont think i'll be able to make this one. Thanks for the invite though.

Hi Jim, What happens during the meeting?