[on-demand webinar] how to find, analyse and research subdivision oppourtunities
TRANSCRIPT
How to find, research and analyse subdivision opportunities
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• Heads up membership services team at Real Estate Investar
• Team of 6 Portfolio Managers
• Supporting 2,800 subscribers
• Manages the Premium & Concierge Service
• Building and implementing property acquisition plans
Logan Horstead
• Services all subdivision deals in Australia
• Property Investor 20+ years
• Personal experience in subdivisions
• Very specific knowledge around the subdivision process and how to conduct feasibility studies
Justin Hams
• Property investor focused technology company founded 2006
• We help simplify Real Estate Investment
• We help property investors make the most of their investment portfolios
• 250,000+ investors subscribe to our free membership, news and market reports
• 2,800 current members
• Mix of personal users, brokers, buyers agents and accountants
Real Estate Investar
ASX:REV
• Heavy investment in product
• Public company governance
• Strong and focused board;• Simon Baker – Former CEO of REA• Anthony Catalano – CEO of Domain
In partnership with…
Our mission is to provide property investors around the world with the best advice,
guidance, products and services to enable them to create wealth through property investment.
Search
Analyse
Acquire
Track
Account
Poll: When are you looking to purchase next?
Notes for the presentation• The purpose of what we are going to
show you is to demonstrate the REI tools
• While we cover a lot of the things that should be done during feasibility studies this is by no means everything that needs to be considered
• There is plenty of great content available on line and checklists you can source for free
• Always consider your personal financial circumstances and the implications of things like GST and CGT
• Seek advice from a professional!
• Identify an area based on your budget
• What is the general cost of the subdivision in that area
• Take time to understand the time it takes to complete
• Is this actually the best strategy for you
• What is it you are trying to achieve
How do we do it?
• Typically will require $600k-700k to complete (Brisbane, Logan, Moreton Bay)
• Typically will require $500k-$600k to complete (Ipswich)
• Typically will require $750k-$1M to complete (Greater Sydney region)
• Typically will require $600k-800k to complete (Greater Melbourne region)
Typical cost by area
• Typically will require $85k-$100k to complete (Brisbane, Logan, Moreton Bay)
• Typically will require $80k-$90k to complete (Ipswich)
• Typically will require $70k-85k to complete (Greater Sydney region)
• Typically will require $50k-65k to complete (Greater Melbourne region)
Typical cost of the subdivision by area (1 into 2 lots)
Poll: Where are you purchasing next?
Where do you start?
Checklist• What can you borrow?
Poll: Would you like a free borrowing capacity check?
Checklist• What can you borrow?
• Use Investar Search to find an area with suitable block sizes
• Take time to familiarize yourself with that area
• Understand land sale prices and check demand for land using Pricefinder
• Proximity to population centres can be a big plus
• Check the local council websites for planning maps and minimum lot size information
Real Estate Investar’s Pro tools
Investar Search
Investar Search
Search Results
Search Results
Search Results
Aerial Shot
Search Results
Planning Alerts
My Valuer / My Research powered by PriceFinder
PriceFinder Property Report
Interactive Maps
Interactive Maps
Interactive Maps
Zoning
Lot size requirements
Check utilities
Energex Infrastructure
Sewage & Stormwater Infrastructure
Possible division (1 into 3 lots)
350sqm
700+sqm
350sqm
PriceFinder Sales Data
PriceFinder Sales Data
Land Sales
House Sales Data
House Sales – Under 750sqm
New block approx size (700+sqm) $340,000
Purchase Price $499,000Stamp Duty $?Subdivision cost $?Total costs approx $?
Sell block x 2 (@$215,000 each) $430,000Sell Existing dwelling $340,000
Cash after sale $?
What do we know so far
Stamp duty calculator
Mock up feasibility (1 into 3 lot)
Mock up feasibility (1 into 3 lot)
Feasibility (1 into 3 lot)Mock up feasibility on 4 Macaranga St, Marsden
Purchase CostsPurchase Price $499,000Stamp Duty $ 17,201Legals $ 2,000
$518,201Development Costs
DA/Engineering/Approvals $ 20,000
Sewer $ 20,000Water $ 10,000Stormwater $ 10,000Telecommunications $ 15,000Infrastructure Charges $ 56,000
Plan Registration, Legals, etc $ 5,000
$136,000
Total Investment Cost$654,201
Purchase Price $499,000Stamp Duty $17,201Subdivision cost $136,000Total costs approx $654,201
Sell block x 2 (@$215,000 each) $430,000Sell Existing dwelling $340,000Total sales $780,000
Cash after sale $115,799
Mock up feasibility
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REI Tools
Poll: Would you like a call to discuss the Pro tools?
Our mission is to provide property investors around the world with the best advice,
guidance, products and services to enable them to create wealth through property investment.
Common investing challenges
• Don’t have the time
• Don’t have the knowledge or confidence
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Poll: What is your biggest challenge with investing?
Options to overcome challenges
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• Attempt to do it yourself anyway
• Don’t do anything
Issues to consider
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Introducing the REI Premium Service
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Introducing the REI Premium Service
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Investor Platform & Information
Introducing the REI Premium Service
An end-to-end service to help you into your next (or first) investment property right now
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REI Premium Service advantages• Access to our platform gives you complete
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Finance & Professional ServicesProperty Deals Service
Investor Platform & Information
Recent deals clients have done:Holmview subdivision
Recent deals clients have done:Holmview subdivision
Purchase Price
$310,000
Purchase Costs $10,000Subdivision Costs
$80,000
TOTAL $400,000
House End Value
$300,000
Block End Value $220,000TOTAL $520,000
600sqm
400sqm
$120,000 increase in equity
on completion
Recent deals clients have done:Gosford off-the-plan
• Boutique Development
• 48 x 2 Bedroom Apartments
• Capital growth has been 7.6%
• Water and District Views
• Prices from $435,000
• Real Estate Investar Clients received a further $10,000 off the listing price
• After public release pricing went up to $455,000
• Expected equity for initial purchases currently $30,000
Recent deals clients have done:Gosford off-the-plan
Poll: Would you like a consultation to discuss the Premium service?
Book you complimentary consult https://info.realestateinvestar.com.au/premium-membership-consultation
Special offer - realestateinvestar.com.au/save50Special Webinar Offer – Casual Subscription $99 per
monthNormally $149 per month – Save 33%
Questions