Are you considering investing in a development site? If so, then you need to know the essential tips for buying such a site. In this week’s Top Tips Tuesday, I discuss the five most important tips for buying a development site.
1. Finding a development site
Finding the right development site can be challenging, but it’s crucial to get this step right. You can use traditional portals, but they have limited filter searches.
Building a relationship with local selling agents can be very helpful, as they can inform you of properties coming to market before they hit the market.
You can also approach owners directly using portals such as CoreLogic, RP Data, and Pricefinder.
2. Analysing the development site
Analysing the development site is essential to ensure that it is suitable for development. The first thing you need to look at is the zoning for that block of land.
This can be very time-consuming, but platforms such as Real Estate Investar can help.
You also need to check all the overlays over the land, such as flood issues, water over course, and bushfire risks.
Additionally, you need to look at the types of materials used, easements on site, site services, and street frontage or the rear of the property.
3. Condition of existing dwellings on the development site
The majority of development sites have an existing dwelling, and it’s important to determine if it’s worth keeping.
If it’s in good condition and has a sound floor plan design, then you can retain it and perform a cosmetic renovation. If it’s old and run down, it’s better to remove it to make way for more buildings on the site.
4. Market Value
It’s challenging to determine the market value of a development site because they are very different from a standard house and block of land.
Many development sites are listed without a price or a range. You need to assess the market value based on the highest and best use of the land.
5. Feasibility
Once you’ve analysed the site and determined the market value, you need to assess the feasibility of the project.
This involves determining the costs involved, such as retaining walls, engineering, and drawings. You also need to consider the timeframe for completion and the associated risks.
In conclusion, buying a development site can be very profitable, but it’s crucial to get the fundamentals right.
Finding the right site, analysing it, determining the condition of existing dwellings, assessing the market value, and evaluating feasibility are all essential steps in the process. By following these tips, you can increase your chances of success and avoid costly mistakes.
If you are considering investing in a development site reach out to me so we can discuss your needs further. You can book a time in my calendar by clicking here.
Regards,
Geoff Tomkins
Buyers Advocate
PH: 0404 852 781
