Anyone sold house/land with development approval?

[Iggy_Type_R]

As the title suggests, looking to see if anyone has bought a house or land, put plans in place, stampted, etc and sold with plans instead of developing yourself? If so, what was your thinking behind it? For against that kind of thing.

thanks!

 

[beachgurl]

I've just bought a place that had DA approved plans in place. The owner had found another project and he needed the cash for that one..

Some people don't have the funds to proceed with developing a block and try to profit on the DA alone. In many cases it's worth spending their 20-40K to get the approvals and make a signficant price increase. In the case of the one I've bought, I don't think DA approval has added to the purchase price. If you've got approval for a development that wouldn't appear possible to the inexperienced developer than I can see good value in getting the DA and then moving on.

 

[MTR]

Selling with Plans and Permits in place

I purchased 2 houses next to each other and put together plans and permits for 8 units in Melbourne.

This strategy will work well in a rising market where builders are looking for development sites and where the scarcity element will help.

Also, it goes without saying its needs to be an attractive project, where the numbers need to stack up for the builder/developer, otherwise who will buy???

Here are my number - costs/project:
Property - $597,000 (maisonette - 2 side by side)
Architect fees - $20,000
Sold Price - $907,000 (time frame - 12 months in total)

I am currently considering doing this with a current development site I have in Melbourne, still looking at options.

Cheers
MTR

 

[RPI]

Lots of times.

For me I often make the most money by doing a difficult DA through or finding an interesting use. If I can lock in a profit now rather then develop and sell at an estimated price in the future then I will lock it in now.

 

[poordeveloper]

Here are my number - costs/project:
Property - $597,000 (maisonette - 2 side by side)
Architect fees - $20,000
Sold Price - $907,000 (time frame - 12 months in total)

Wow - that's a great result! Can you tell us what suburb?

PD

 

[Iggy_Type_R]

Thanks for the replies... I am actually looking at a few DA approved sites at the moment to take that out of the equation and do the build. I've lined up a good team and don't want to sit on planning for a year or two.

MTR if you have a site, drop me a PM happy to have a look.