G'day eveyone, I have been trying to get into the subdivision/development game as I am trying to manufacture GC myself. I am based in Melbourne and I am looking at the western suburbs ( Deer Park, derrimut etc. ) at the moment for development opportunities as I couldn't afford the east.
I would greatly appreciate someone on this forum could check the cost model/template I created below. I have been using this to assess the potential deals that I have come across so far ( about 20 or so ), and only ONE seemed to be finically viable, however the deal was shot down by the bank due to the poor valuation ( $50k less than the estimated value after completion).
I am not sure if I am being too cautious finically or what. Sometimes I wonder if I will ever find a deal in my selected areas.
My plan is to develop and hold majority of them and use the equity to keep going while the properties are in CF neutral position.
Thanks in advance for everyone's help.
I would greatly appreciate someone on this forum could check the cost model/template I created below. I have been using this to assess the potential deals that I have come across so far ( about 20 or so ), and only ONE seemed to be finically viable, however the deal was shot down by the bank due to the poor valuation ( $50k less than the estimated value after completion).
I am not sure if I am being too cautious finically or what. Sometimes I wonder if I will ever find a deal in my selected areas.
My plan is to develop and hold majority of them and use the equity to keep going while the properties are in CF neutral position.
Thanks in advance for everyone's help.