Home – New Forums Find the help you need Builder wanted to develop residential property for share

  • This topic is empty.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • #981891
    crisb
    Member
    • Total posts: 3
    Up
    0
    ::

    Hi guys,
    Spitballing to some degree here… I have a property that is in dismal state in Boondal area. 788sq.m., wide frontage, flat block, flood free zone, current 2 story home with swimming pool. The home is in horrific state and had asbestos roof and wall lining. Nothing going for except potential salvage of entirely hardwood frame construction and current services/driveway.

    Currently valued at 350k. Property entirely free of liabilities/mortgages. I don’t have the funds for high quality renovation.

    I am looking at my options for rebuilding, and am interested in investigating the possibility for a builder to take a pro-rata share in the property ownership in return for building a new home on the block.

    Interested parties please get in touch soon as I am deciding which direction to go with it over next few weeks.

    #1133557
    mattl
    Member
    • Total posts: 9
    Up
    0
    ::

    Hi Crisb,
    I am not entirely sure what you are planning to do with the property once it is completed. Your current thinking doesn’t sound like a good investment for a builder.
    Because you own the property you would be able to secure a good loan to be able to do what you want. Once the work was done you could sell it hopefully for a profit and get out of your loan if that was the way you wanted to go.
    In my opinion it sounds like you need to “greenify” it. (Blatant free advertising for my business http://www.greenifyconsulting.com.au )
    The only way you are going to know which way to go is to look at all your options in detail and then decide.

    #1133558
    Cjay
    Member
    • Total posts: 183
    Up
    0
    ::

    As Greenify mentioned, should be able to meet lending criteria, it might make more financial sense to take a loan out on the property and use this to develop the property and meet the loan repayments during the construction period.

    E.G you may take out an 80% lend on the existing property (275k), then use these funds to subdivide, scrape the block, and meet the deposit requirements for the construction lend. You would no doubt still have substantial funds after that to meet the interest incurred during the build, so your current cashflow would not be affected.

    I would suspect that if you were to pass on a portion of the property to the builder they would inflate the margins to cover their downside risk and transfer charges, you would likely also have tax liabilties for the transfer.

    #1133559
    crisb
    Member
    • Total posts: 3
    Up
    0
    ::

    Thnaks for the sage advice guys,
    Yes that would be optimal, I have returned to mature age study, so a loan in current climate is impossible as no means to pay it off. I am entertaining this idea cause I own the property free and clear (13kms North of Brisbane City) valued at 310-330k as a cleared block.

    It’s an RA block which means single title (granny flat additon possible) block only, Hence my options appear to be to sit on it until I finish my course in 3 more years, sell and have a loss renovate cheaply which doesn’t return a considerable capital gain or cash flow return, or entertain something like this “partnership” idea whereby quality homes are renting quite well in this area, and have improvements made to equivalent value then take half share of rentals.

    As I say spitballing…

    #1133560
    PRO
    Member
    • Total posts: 450
    Up
    0
    ::

    Hi

    Your site may be developable under the new City Plan. I often do stuff on spec. PM me or email me the address and I’ll see if I can come up with anything.

    D

Viewing 5 posts - 1 through 5 (of 5 total)
  • You must be logged in to reply to this topic.