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From: Shane .
Just wondering if anyone has some ideas of things to look out for in a deal I'm looking at.
Here's the scenario:
- 130 acres in total
- plans approved for subdivision consisting of 3x40 acre blocks and 3x2.5 acre blocks (current for 12 months) and already surveyed.
- total purchase price $450K
- approximately 150m of road works required.
The agents told me he could easily get $100k each for the 2.5 acre blocks, and around the $200k's each for the 40 acre blocks (one is a little hilly so might not attract as much).
I've done some research in the area and the 2.5 acre blocks are selling above $120k.
So, looking at the figures, it appears sound. Not having done anything like this before, I've been thinking about what could be stopping the owner doing the same and making an easy million....
My thoughts:
- hassle of development
- cost of development
- road costs
- water, sewerage and electricity availability (most in the area are septic and tank water..)
He's a little older, and has been living there for 20 odd years, so I'm not sure he's got the time or patients to go through with it himself....
Anyone got any suggestions or ideas, things to look out for etc?
Oh, and it's NW of Bris Vegas...
ta
Shane
Just wondering if anyone has some ideas of things to look out for in a deal I'm looking at.
Here's the scenario:
- 130 acres in total
- plans approved for subdivision consisting of 3x40 acre blocks and 3x2.5 acre blocks (current for 12 months) and already surveyed.
- total purchase price $450K
- approximately 150m of road works required.
The agents told me he could easily get $100k each for the 2.5 acre blocks, and around the $200k's each for the 40 acre blocks (one is a little hilly so might not attract as much).
I've done some research in the area and the 2.5 acre blocks are selling above $120k.
So, looking at the figures, it appears sound. Not having done anything like this before, I've been thinking about what could be stopping the owner doing the same and making an easy million....
My thoughts:
- hassle of development
- cost of development
- road costs
- water, sewerage and electricity availability (most in the area are septic and tank water..)
He's a little older, and has been living there for 20 odd years, so I'm not sure he's got the time or patients to go through with it himself....
Anyone got any suggestions or ideas, things to look out for etc?
Oh, and it's NW of Bris Vegas...
ta
Shane
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