Finding an investment property - split block

[ottg]

There are many different ways to go about it but you first need to know what strategy suits you best eg: off-the-plan purchase, standard purchase, reno, subdivision, block splitter, land development etc. Most investors start with an off-the-plan (at a discount) however rely on appreciation to get equity overtime. There are faster ways to increase cash flow and/or equity.

I mentioned earlier to find a R40/R60 zoned block that may be subdivided and construct two 2x1 villas, here: http://www.saaustralia.org/topic/44974-what-do-you-do-if-you-cant-afford-to-buy/?do=findComment&comment=408132

It turned out not so easy to find those blocks as they aren't abundantly available at a discount, and often if they were then there is a good reason.

 

1. So the strategy now has changed to R20/R30 splitter blocks in good growth areas. This can take various forms like:

a. demolishing, subdivide and flip,

b. reno the existing dwelling, subdivide and flip

c. reno the existing dwelling, subdivide, construct a dwelling on the 2nd block and flip/or keep

The latter is my current strategy.

2. The process is similar too:
a. Where to invest (State, suburb and area) (there are good mechanistic methods available how to go about it if you want to do it self)
b. Land discovery (different aspects to consider to make sure you find the ugly duckling in the better street)
c. Quick & preliminary Feasibility assessment
d. Financing & land acquisition
e. Detailed Feasibility Analysis and Design Concepts
f. Architectural Design and DA Process
g. Subdivision approval
h. Construct
i. Property management and tenancy
 

As I'm past point 2.a & 2.b and on 2.c, the question is how to do a quick feasibility when all the costs are not known yet but you need reliable estimates? As not much information is available in the beginning you need "accurate" assumptions. 

There are many different ways of estimating the cost of a project. They are:

1. Costing by area (use for preliminary estimates only - quick napkin method)
2. Costing by a costing guide or estimating manual (for a specific state)
3. Costing by material and labour will take some time as accuracy requires exhaustive research

The first one is used to check if the initial number do stack-up and if more time needs to be invested in the assessment. The next one to use industry indexes to get a more trusted estimated based on historic examples. If the numbers still stackup you pull-in the big guns (and $$) and start an in indepth assessment.

Anyone with knowledge/experience on method 1 and 2 for Australia?

[ottg]

I found a great property development feasibility calculator which offers many useful features. However this free apps only runs on Android devices available from Google Play.

For those ICT minded - after tempted to run it under Windows using Amiduos and first Lollipop and then Jellybeans but still couldn't download it from the Google Play store. However other games & streaming apps were working fine via Amiduos.

 

The apps installed seamless on Android devices and I ran & verified real scenarios of available properties. For those interested you can check the apps here:

http://www.developernetwork.com.au/qwikfeaso/