Unit Development

[WebBoard]

From: Trina Blum


Hi all,

I have been phoning agents about possible IP's as we are looking for a villa/unit etc.

An agent suggested a property which he said is a quad block - does this mean it is zoned for units or do agents just call them that to indicate the size?

The block has a 3 bed house on it tenanted for $115 pwk and is priced at $149000 (not a good return). The agent says we'd be able to put 3 units around the back. I presume there would be a lot involved in building units on the land - is this something we should not attempt for our first IP? We wouldn't have the money to build straight away anyway but perhaps further down the track?

Any advice or suggestions?

Regards
Trina

 

[michaelg]

Reply: 1
From: Michael G


Hi,

It means you need to ask the agent more questions. Get them to qualify your statements.

Michael G.

 

[Michael Yardney]

Reply: 2
From: Michael Yardney


Trina
While building your own investments is a great way to go, and is the way the professionals do it, it is definitely not for the first time investor.
There are too many stumbling blocks, from getting permits and working through all the red tape, to finding a builder and supervising him.
Start small, learn the ropes and work your way up to more ambitious investments.
Michael Yardney
Metropole Properties

 

[WebBoard]

Reply: 2.1
From: Gee Cee Clay


Totally agree Michael.

Even when you have yrs of experience it can be a real pain getting from A to Z and sold again.

Gee Cee

P.S. Never believe all of what agents tell you.

 

[Jas]

Reply: 2.1.1
From: Jas


>
> P.S. Never believe all of what agents tell you.

Too true. I was listening to an agent sell a property to some
investors. A new industrial building had gone in recently in the area,
and the agent said in response to a question on transport "since the new
development has gone in, the buses have increased substantially". It
sounded like it could be true, and that's the trap.
I know the numbers of routes are the same and the buses are still
working from a 1995 time table.

Jas

 

[WebBoard]

Reply: 2.1.1.1
From: Steve Piggott


Gotta agree with the previous posts Trina.

Developing is a nightmare for investors!
Better to buy established or OTP.
If its Established...its a clean deal and you know what it can return!
If its OTP you dont pay a cent til its finished and have the plus of cap growth.

If you can ...us market leverage and dont expose yourself to more than u need to.

Im no guru... just learnt thru experience.

Neb

"A wise investor knows how to make much from very little"