What should I do? Any opinions/ideas welcome.

[danfoss5000]

Hi all

Im a first time poster and have been reading thru a few posts over the last couple of days. I will continue to do some reading however I just wanted to get some opinions about the best way to go for me.

Heres my situation

Age: 32
Location: Mackay Qld
Work: Engineer at a coal mine (I work away from home during the week with meals and accom provided). Therefore dont have a lot of time to research and view properties etc.
Income: $110k/annum
Current property: I bought land and engaged a builder to build a 3bdrm rendered block house which was completed in in 2008. Total cost around $370k. Current value around $410k. Im am currently owner occupier (I stay there on weekends however I have a couple of friends renting the other 2 rooms for $120/week each). Current equity of around $80k.

I am interested in getting into property development such as a small townhouse development in Brisbane or small subdivision (one block into 2 blocks etc) but dont have any experience.

I was thinking of engaging a property development consultant to do all the work incl finding the property, due dilligence, project management etc however im concerned that they will take the majority of the profit etc.

Alternatively im thinking of just buying an IP. What should I be looking for when buying an IP?

Any opinions/ideas welcome.

Thanks in advance.

Regards

Daniel

 

[The Y-man]

I am interested in getting into property development such as a small townhouse development in Brisbane or small subdivision (one block into 2 blocks etc) but dont have any experience.

...

Alternatively im thinking of just buying an IP. What should I be looking for when buying an IP?

Buy an IP that can be developed later (when you feel you have learned more etc)

Cheers,

The Y-man

 

[RumpledElf]

Get hold of your local council development plan (should be on their website) and read it to find minimum sizes, frontages, setbacks etc. Then you can use that info when you are looking at potential IPs to see if they have development potential.

 

[danfoss5000]

thanks guys

 

[stephenb465]

Ba

I'm looking for my second IP, I'm like you where I don't have much time due to me working overseas on a mine.

The only way I can move forward is to use Buyers agents, Cost 2.2% of purchase price, the way I look at it, first year growth if 7% than buyers agent had taken the first 2.2% which leave me 4.8%

Good deal I think, especially how much time they put into research and home visits.

But beware, some BA take short cuts and view the property via web site and get reports from seller agent thats my personal experiance.

Stephen

 

[Bon]

stop being so lazy and do something!

 

[HandyAndy888]

stop being so lazy and do something!

I concur... definitely jump in. With 110K annual income, a reasonable 5% IP is not out of th question, but do it soon, rather than sitting on your hands. I also think with your development dreams, buy a largish block with a house that you can subdivide later...have fun!!!

 

[skater]

Like some of the other posters have said, look for something with potential to develop at a later date, when you have more time on your hands. I would also suggest using a Buyers Agent if you feel that you can not do the required due dilligence.

 

[danfoss5000]

I concur... definitely jump in. With 110K annual income, a reasonable 5% IP is not out of th question, but do it soon, rather than sitting on your hands. I also think with your development dreams, buy a largish block with a house that you can subdivide later...have fun!!!

thanks guys i will start talking to my bank and looking around next year.

nice bike andy! i used to have a monster too. im on a 2006 fz1 now...