Unlike passive investment where you purchase a home, rent it out and wait for it’s capital value to increase over time, subdivision requires your active involvement. This type of investment has lots of financial upside but requires you to roll up your sleeves.
One form of subdivision is to purchase a raw parcel of land to form a large housing estate. Another version is to build on an existing property with a second dwelling. Examples are duplexes and dual occupancy properties.
Subdividing can also include creating an entire new block of townhouses or units. This is usually in medium-density areas on land allotted for that purpose by a council encouraging residential development.
Then there is the possibility of purchasing an existing apartment block to separate or strata the title. This way you can sell single units within the complex.
Steve McKnight, a property investor and author, wrote about a successful purchase he was involved in which illustrates the idea of subdividing. “We bought eight previously strata-titled dwellings as an entire package deal and we’re just going to sell them off individually.
“We haven’t had to do any of the development work, it’s all been done for us. But we had the advantage to buy wholesale in terms of purchasing all eight units and then selling retail, by selling them off one at a time.”
If you have a question about real estate, or would like assistance in locating a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Browns Plains 3800 4000, Marsden 3200 4495, Springwood 3808 5544 or Waterford 3299 7733.
Friday, October 16, 2009
Wednesday, October 7, 2009
Getting Ready For A Spring Sale
It could be said that the early bird gets the worm, but putting up your property for sale in September or thereabouts could make sense. Consider that more properties are for sale from September to the first week of December than at any other time of the year.
In fact, there are proportionately more buyers than sellers in early spring, so your chances of achieving a higher price are better.
When selling it’s also a good idea to scope out the market for comparable properties to yours, comparing apples to apples. If you have a 3 bedroom unit, for example, look and see what other 3 bedroom units on the street are selling for. Don’t look at 3 bedroom houses.
Regarding whether to auction or sell by private treaty, it depends on the house and the area. If your property has unique features that would attract plenty of buyers, then auctions can achieve a competitive atmosphere.
If you’re in a new housing development, on the other hand, where there’s other similar properties auctions are less successful.
Finally, first impressions are so important when a sell sign goes up. So put attention on your garden. Simply pruning larger shrubs and trees, for example, can make the garden appear larger.
If you have a question about real estate, or would like assistance in locating a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Waterford 3299 7733, Browns Plains 3800 4000 or Springwood 3808 5544
In fact, there are proportionately more buyers than sellers in early spring, so your chances of achieving a higher price are better.
When selling it’s also a good idea to scope out the market for comparable properties to yours, comparing apples to apples. If you have a 3 bedroom unit, for example, look and see what other 3 bedroom units on the street are selling for. Don’t look at 3 bedroom houses.
Regarding whether to auction or sell by private treaty, it depends on the house and the area. If your property has unique features that would attract plenty of buyers, then auctions can achieve a competitive atmosphere.
If you’re in a new housing development, on the other hand, where there’s other similar properties auctions are less successful.
Finally, first impressions are so important when a sell sign goes up. So put attention on your garden. Simply pruning larger shrubs and trees, for example, can make the garden appear larger.
If you have a question about real estate, or would like assistance in locating a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Waterford 3299 7733, Browns Plains 3800 4000 or Springwood 3808 5544
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