It is frustrating finding a (profitable) development site

it will be sold at $1.3M in by 5:30 PM AEST.


vendor must be happy to clean couple of hundred thousand in less than 6 months!

Hey, i live near the area, i have to admit when u said 1.1 my heart dropped as that would have been a great steal.. at 1.3 its still a good buy.
have you developed in mascot b4? From my understanding they arent the easiest council to work with.
 
That's the only thing stopped me buying there late last year.

I was getting a corner block @better location for 1.15m but I let it go as DA approval time with botany ranges from 18 to 24 months.
 
Michael Eltringham

Hi All,
First time here.
Talking about development sites.
We are just in negotiations to purchased block in Launceston Tasmania 2700M2 for $265,000 plans to build 6 x 14 square architectural units for $240,00 each unit including all landscaping and everything and rent out for $96,000 PA also showing a $336,000 equity gain on completion.
I do not seem to have problem finding these sites in Tasmania. But then I am also a builder only problem with Tasmania is low or no capital growth but generally good rents.
 
I just reviewed the property and it is sold :(

I also bought a 660m2 block in december last yr, on the corner zoned r3.. not the best real estate said it was r2 so worked in my benefit but he didnt mention the vendor was a total nut case. Maybe nut case is an understatement.

I believe i got it for a good price and with correct marketing on the house i think i can also clean up a 200k... ill hold for another yr and then sell due to CGT.
 
hahah..

Was it in mascot too?


Next time buy in company name (if possible)and just pay 30% tax.. no need to kill 12 months.
 
i never really looked at mascot as ive always thought it was out of price range and a block that size in mascot is rare.
however i did spend 1.2mil for this purchase inc. stamp duty... that's why i was in a shock when you mentioned 1.1mil.

I am totally against buying units and small size lands.. unless they are extremely cheap.
 
This is my rant...

It is been really difficult to secure a good development site (a profitable one) for long time now.

I see 3 types of buyers..

1. Average mum and dad wanna be developers targeting dual occ sites
2. your local Small medium builders targeting Multi unit, townhouses sites
3 Overseas developers/investors targeting apartment sites.

option 1.

Those developers are paying way too much, underestimating build cost and soft cost associated with small development. i seen some of them are calculating future capital growth and adding that to acquire sites.

Good luck! if they can make money out of deals..

i stopped looking at dual occ sites. period.

Option2.

Being builders they have advantage on cheaper construction cost. so they are paying a tiny bit of premium to get small project.

still can compete in this market. but it is getting really hard as interest rate keep dropping.

option 3.

Not my cup of tea...

but still had a shot at it last weekend. confirmed by agent that i have the deal.. sent signed contract... to be told after few hours that someone else offered more money then what i offered.

ps. this is based on eastern seaboard states, especially NSW, VIC

what are your experiences securing deve sites in last 6 months?

Yup Option1 is quite bad and in my opinion not worth the trouble, unless you're doing purely to kill time.

Option2 , while you may not be a Builder just hook up with one and ride his coat tail

Option3, well if you can't beat them find a way to join them.
 
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