Development Question Poll

[TMNT]

Ive been asked this many a times and I always give a 'it depends' answer

for me, its all of 1, 2 and 3, also gut feeling also helps

assuming your development figures stack up, and DA approval is likely


when you look at a site do you look for:

1. a site that you look at and say, I can imagine new dwellings here as it fits in the area and changing/changed demographics

2. a site that you look at and say, new dwellings are going to sooooooo look out of place, but the figures stack up plus often its the innovators that do the best in these situations before the herd comes in

3. it doesnt matter, as long as the figures stack up, thats all I care

 

[LeoT]

For me it also depends on my intentions with the stock.

If am intending to sell them all, and the numbers stack up very nicely then that's all I care.

If on the other hand I am keeping some stock then it might be a different story for me. But generally if the numbers stack up well, it means this type of development is in demand in the area and there is a good margin for profit, so it kind of negates the " stacks up but will look sooo out of place factor".

Just my approach/opinion.

Leo

 

[perthguy]

I have bought two development sites. Both are in suburbs that are currently low end housing stock but are next to expensive suburbs. Since purchasing, redevelopment has gone ahead around my sites. Both actually have new apartment blocks directly behind. Pretty soon, the townhouses I plan to build will fit right in, even if they might look out of place for a while.

 

[MTR]

I think I would look at all options but its dependent on strategy and how fat the profit%% as Leo mentioned selling/holding.

One thing I consider is how much stock in the particular market? are too many developers jumping in? will there be a glut in the next 12 months, of course no guarantees, but I just try to stay away from areas that are saturated with the same new product just in case the market turns.

This is what is currently happening in some areas in Perth where there is an over supply of apartments and villas .... ouch