Hi,
I am a first time property developer. Bought a Cockburn apartment for first investment which was ok yield & good for tax but in hind site too expensive and I could have done better. This time I want to make the 'best' & most 'educated' decision on capital growth & development potential. I had been looking at Girrawheen for potential development blocks R40 (2015) however the prices have jumped dramatically in last 4 months. Have I missed it? 750 blocks for 450k. Potentially R40 can hv 3 units which are approximately cost 200k each (according to developers I spoke to). If units are selling for 400k in Balga at mo (none in Girrawheen) surely, after DA, demolition, building, capital gains tax etc I wouldn't stand to make a cent if I went that route? Where can you pick up something around 400k with development potential that will be profitable!! Or is it best to simply buy & hold and let the land do the work for you in this market (I wanted to speed up the process)? I have 70k deposit and can borrow to 500k (wanted to stick to 400k) - I just dont know where to buy and whether to plan big for a (triplex) in 2 yrs or baby steps and maybe do duplex in 2 years. Or perhaps just buy a big block to put a 2nd house on later? Any mentors out there?
I am a first time property developer. Bought a Cockburn apartment for first investment which was ok yield & good for tax but in hind site too expensive and I could have done better. This time I want to make the 'best' & most 'educated' decision on capital growth & development potential. I had been looking at Girrawheen for potential development blocks R40 (2015) however the prices have jumped dramatically in last 4 months. Have I missed it? 750 blocks for 450k. Potentially R40 can hv 3 units which are approximately cost 200k each (according to developers I spoke to). If units are selling for 400k in Balga at mo (none in Girrawheen) surely, after DA, demolition, building, capital gains tax etc I wouldn't stand to make a cent if I went that route? Where can you pick up something around 400k with development potential that will be profitable!! Or is it best to simply buy & hold and let the land do the work for you in this market (I wanted to speed up the process)? I have 70k deposit and can borrow to 500k (wanted to stick to 400k) - I just dont know where to buy and whether to plan big for a (triplex) in 2 yrs or baby steps and maybe do duplex in 2 years. Or perhaps just buy a big block to put a 2nd house on later? Any mentors out there?