Property Developing in Today's Market

Property Development always has it’s twists and turns. At the beginning of this Development Series, we talked about the importance of having options long before you purchase, in the event of external factors such as building costs increasing, council conditions changing, market movement and many more. After extensive work in the 12mths of owning this development, we decided to sell the remaining block in it’s existing format.

WATCH TO SEE HOW WE ACHIEVED 31% RETURN ON INVESTMENT IN 12 MONTHS.

RECAP THIS SERIES WITH PREVIOUS EPISODES BELOW

You need to know who you are selling to long before you start building. In this we talk about the process we went through to design our builds and shortlist our builders in preparation for council application.

Who are you marketing your build too?

How do you maximise your return on investment as an investor?

As always, thanks for your support and contact us direct if you have anything you want to run past us.

RECAP THIS SERIES WITH PREVIOUS EPISODES BELOW

If you do not have options long before you purchase, it can leave you red faced and out of pocket.

Covering off on these we had 3 options –

1. Demolish and build 4 torrens title townhouses across the 2 blocks
2. Demolish and build 1 large family home on each block
3. Renovate both of the existing dwellings and on sell

Property investing always has it’s twists and turns. Due to the market upswing and de-risking for further developments, we decided to create an Option 4

Check out our lastest video to find out what our decision was and the reasons behind this.

As always, thanks for your support and contact us direct if you have anything you want to run past us.

When looking at build cost, we always ensure that we are covering not just the build itself but all inclusive costs such as council contributions, construction certificate and development application costs, planning and engineering costs, fences, landscaping, kurb and guttering, holding costs, plus any incidentals involved throughout the process.

This is for 2 reasons –
1. We understand our fixed price costing to project accurate profit margins based on estimated sale price and
2. We want to be able to lend as much as we can from the banks and not have to pay for any of the above out of our own pockets.

In summary, the build contract that is drawn up with the builder will cover the costings of all inclusive. When we say the build is $1800 per sqm that is what we are referring to. If we were to look at just a build on it’s own, maybe it is closer to $1200 per sqm.

In Episode 4 of our development series, we show you our ‘walk away number’ when negotiating a purchase and how we came to create this number. We will run you through the cost to build our development, along with our expected sale prices on completion and also how we established this figure in our due diligence process.

This brings us to the all important profit. Is this development going to be worthwhile for us and what should be the actual realised profit / profit margin on completion?

We round the video off by talking about the all important buffers that most investors and developers forget about when looking at their bottom line costs vs sale price to see whether a development is going to stack.

Enjoy the video and stay tuned for Episode 5.

In this video we go into detail about how we identified the suburb that we purchased our development in and also how we went about finding the right property in that suburb to purchase and the strategies to find this that were outside the box.

Everyone can implement these strategies but very little do or are prepared to.  As we always say, “do what everyone else isn’t doing!”

Enjoy the view and as always contact us if you need further clarity around anything we speak about in the video.

Finance is critical to the success of any investment. We will talk you through what financial decisions were made and why we made them to ensure a successful development.

Topics covered here are:
• Who you need on your team to gain finance approval
• What can you borrow
• Deposits and buying power versus serviceability.
• Finance clauses and why we need them
• Valuations and how how they stacked up for us

We are onsite on settlement day to show you the property and reveal where it is located and what excites us about the opportunity. We will also discuss why we purchased it and how we acquired such an investment.

This video series will give you an insight in what we plan on doing with our most recent property investment. It is a real time look into the ins and outs of our property development as it happens. You will gain some helpful tips and advice every step of the way. If your a seasoned property investor or someone thinking of starting a property portfolio this video series is a must see.