Warning : Local Councils are amending current approval laws on what will be open to review and what will not be entertained as far as new development goes. Do your homework with the council first !
We are often asked questions about purchasing existing property and either, sub-dividing & building more than one dwelling or renovating and then selling to capitalise on the investment. Here is a summary of answers to questions raised :
What are the ‘hidden’ costs when purchasing a property for the sole purpose of renovating & or to subdivide, develop and sell the property?
Costs you would need to budget for include :
Investing in property for the sole purpose of renovating and or developing can be a very fruitful investment for you, the purpose of the above is not to scare you away from this type of investment opportunity but rather to enlighten you, so that you can make an informed decision as to which way you chose to go.
This type of property investment is not for the feint hearted or cash flow inhibited; but for the Investor who is going into it with their eyes wide open with access to a healthy line of credit to finance the project from go to purchaser’s settlement.
An estate agent selling you the property represents the vendor and is solely commission driven to tell you whatever you want to hear to help get you to purchase the property. A massive investment for you … once you are committed, you are in boots and all. It is your money (not the estate agent’s) make an informed decision.
An old adage in property is that if the property is a ‘steal’ there is very very good reason why it is so! Let the buyer beware!!
NB : Primary objective of Investing in property is to achieve and maximise your return on Investment. If this is your preferred strategy you would want to compare the numbers / financials which underpin your proposed investment before you commit to your say half a million dollars … would this statement be correct? If so read more … on comparing purchasing traditional real estate (existing property on the open market) with purchasing house and land or Off Plan developments
And working examples for demonstration purposes of financials on Off the Plan investment properties view here
applying for build permits, developing, developing a property, how to develop a property, property development, renovate or build, selling a property, what to be aware of when doing a property development
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