Now that you have completed the Due Diligence and selected the potential site for development.
At this point, you have pertinent information uncovered in the due diligence stage that provides significant information about your development: legal, planning and existing conditions.
What we need to do next is to quantify your profit to assess the feasibility of your intended project by using recent, comparable sales data. By this we mean:
- Recent: within the last three months, and
- Comparable: the same type of development, within the immediate vicinity (same street if possible)
You may have to broaden the scope of your data. Just be aware that the further you go for comparable sales data, the less authoritative your data will be.
No matter how optimistic you may be about your project, you must think like a valuer. You need to substantiate and source all figures, and be conservative.
You might have been following the reality show ‘The Block’ in which the participants renovate the old properties and some of them make decent profits in a very short time frame. Is it renovation as easy as it looks? We will explore both sides of the renovation this week.
Over the last few weeks, we talked about various types of properties that you could invest in to start your property investment journey and all of which are ‘mainstream’ strategies. This week, we will look at some special purpose property strategies.
In recent years, buying off-the-plan properties has become increasingly popular, especially with the high-rise apartments in the Melbourne CBD. We will save the high-rise apartments discussion for another time and just focus on the pros and cons of buying off-the-plan today.
Most of us have bought a car by now. Did you have a hard time deciding whether you should buy a new or used car?
I am sure you have heard people debating the pros and cons of buying a new vs second hand, and to be quite honest, it is a similar debate when it comes to purchasing your investment property.
In this week’s post, let us have a look at the upsides and downsides of each option
I often have people asking me whether they should buy a house or an apartment.
Generally speaking in recent times there has been an increasing acceptance of apartments relative to houses to cater for our accommodation needs. Families are getting smaller; people have less time on their hands to maintain gardens etc. I, for one, do not like the idea of maintaining a huge backyard, that just sounds like an endless war between me and the weeds and I often lose.
You as an investor need to be mindful that tenants gravitate to properties that meet their needs. These needs will largely depend on how they prioritize and weigh up each of the above advantages and disadvantages. How they feel about the notions of space, time, enjoyment and money in relation to a specific property.