How NOT to make money subdividing a property *Mild Rant Warning*

Doing some research on backyard subdivisions for a strategy I have in mind and came across this company thats make me cringe.

http://www.sellyourbackyard.com.au/default.asp

Basically if you have a backyard that is big enough to be subdivided, they will buy your backyard from you, subdivide it, develop it and sell it.

Why is this so cringeworthy? Because the seller is wasting soooo much opportunity while this company benefits from the sellers, ignorance, laziness and/or inability to wait 1-2 years for financial benefit.

These are some of the excruciating expressions/phrases they use to convince people to part with their backyard
-"We invest so you don't have to invest your time, money, blood sweat or tears!"
-"turn your backyard into cash without the risk, stress and financial burden"
-"You've worked hard, made a good investment now it's time to REWARD YOURSELF. " (particularly horrible)
-"you want to invest some time and money back in to yourself, maybe your dream car, travel, a boat..." (almost as bad)
-"You might be someone that doesn’t want to work for your property, but wants your property to work for you." (ironic)
-"The Sell Your Backyard Team takes care of every aspect of the subdivision application, leaving you free to use your expertise and experience in your chosen field and have fun in your free time. "

From what I can see, they provide a great service IF
-you want quick easy money
-too lazy to do some research and employ some professionals
-don't get delayed gratification
-have no interest building wealth or financial security

I understand if you don't have the finances to support a development but seriously, how hard is it to employ a good planner, draftsperson, architect etc etc, subdivide the property and at the very least, sell the back lot with just plans and permits after 1-2 years and make a decent profit???

As for the company itself, I don't think their business strategy is ethical but very creative, probably lucrative and plenty of fools are out their willing to part with their assets so negative kudos to them.

What is every one else's take on this?
 
From what I can see, they provide a great service IF
-you want quick easy money
-too lazy to do some research and employ some professionals
-don't get delayed gratification
-have no interest building wealth or financial security

So a fair population of Australia.....there business model looks like it caters to a pretty strong target market.
 
Reminds me of "we buy gold" booths at shopping centres way below market value, but hey, some people just can't be bothered doing things themselves.
 
a great many people are scared of both failure and success in this country and for some reason, if they set out to not succeed "too much" then the only other option is failure -which is also unpallatable.

so they do nothing, or hire an "all in one" style of whatever process they're into and are happy to forego profit in order to fulfill both requirements of not failing at what they do, but can also limit their success.

think everything from buying a car (dealer insurance, dealer finance, dealer car) to developing property.

yay for the average.....and those that understand how to exploit it for profit.

im in no way suggesting this operation is predatory, it just fills a large niche that is harder to tap than the small ones.
 
There are plenty of people sitting on large blocks of land who could do with the cash this service would provide. In my experience they tend to be totally terrified of doing this themselves and would welcome someone to do it for them.
 
We often forget, on here, that - just because we are very capable of doing something as "easy" as this - the other 95% of the population isn't.
 
Yes it isn't the simplest thing, subdividing a property, when you're doing it for the first time. This is why it is important to hire professionals who can guide you along the way (surveyor, planner, building designer, solicitor etc.).

It's not the most difficult thing getting a bunch of good people on board who'll help the customer through the process from start to finish. Companies like this target lazy people who aren't even bothered to make a few calls around and get a team together. They'd rather throw thousands of dollars out the window and be completely taken advantage of.

If it's not obvious I agree with the OP, absolutely terrible way of conducting a business and is clearly taking advantage of the customer.
 
I've lived in a few countries before coming to Australia and done a lot of travelling, I don't find Australia any different than any other frankly. How well we succeed in life and what risks we take has do with our personalities not our nationality.
I'm just starting out in the property investing, it doesn't mean it's the only way to make money, I have made my fortune already this is an extra.
 
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