Have you ever considered the possibility of subdividing your block or perhaps rebuilding your current home?
What you rarely get to hear outside the industry, is that most inexperienced people who undertake this type of development for profit will end up with a very little financial gain after what can be 6 to 12 months of work and an enormous amount of time and stress.
Otto Property provides professional services specifically tailored to subdivision and property development projects to ensure that this does not occur. Our property development service is designed to identify all of the costs, issues and potential gains associated with this process as well as give practical and detailed advice and expertise to get the job done right.
If you wish to pursue this kind of endeavour, you need to take a number of factors into consideration before buying or subdividing existing land. Some of the key factors that you need to think about before undertaking any development project are as follows:
- What is the true value of the land both as a whole and when subdivided
- What are the local council requirements in this location?
- Are there regulations relating to land size, setbacks, or driveway access just to name a few?
- What statutory and other charges are there for creating a new title, whether it be Torrens or Community title?
- What is the cost of demolition and what other hidden costs such as asbestos and hazardous material removal?
- What is the best way to achieve funding for the project? Which banks or financial institutions will lend money for such projects?
- What sort of properties in the area are selling quickly and for how much?
- What is the best type of design to ensure you achieve maximum profit when you sell the property?
- What costs will you incur during the selling process?
- Which builder has the best designs to fit the subdivision, and are the construction costs low enough for you to achieve a reasonable profit?
- Are there hidden costs in the construction process, for example, does this suburb require a particular type of footings?
- What happens if the properties don’t sell?
Otto Property has vast experience in property development from single dwelling demolitions converted into two dwellings, up to developments of more than 20 new properties.
So no matter what the size of the project that you have in mind, your first step should be to speak with Otto Property.
We will evaluate your project to ensure that first and foremost it is viable, within your financial means and ultimately can provide a profitable return on investment, worthy of your time and effort but with a minimum amount of stress.
Daniel Otto has been a part of the property industry for over 15 years, with experience that stretches across real estate sales, investment, rental management and development.
Please reach out if you have any further property related questions.