The first decision in a Property Strategy

There are two fundamentally different paths to creating wealth in Property.

1. Buy, keep and ‘forget’
2. Property development

Your choice in these two different directions is a reflection of your available time, your current knowledge and attitude toward risk. Long term in Australia, betting on Capital Gain is prudent, and over a long enough time, as close to risk free as possible.

Here, we’ll quickly discuss Property Development and ‘bigger wins’

We are, almost daily, messaged about ‘how to make money quick’. Quick is possible, but it also is fraught with risk if you don’t know what you are doing, and its near impossible to have the necessary knowledge overnight. You need to
1) have the knowledge
2) partner with someone who had the knowledge
3) commit to your education, and follow successful use cases

How much does a Property Developer make compared to a Property Investor?

Just as a point of reflection, here are ‘real world’ numbers from 3 case studies to be discussed ‘One-Day Property Developer Summit’

Example 1

DA Uplift in Queensland – Purchase Price: $820K
Strategy: After acquiring this Queensland property, development approvals were obtained for a townhouse subdivision.
Result: The investors are now able to sell the property with DA’s for a projected profit of $500,000. If they build the townhouses themselves the projected profit is $2.5 million.

Example 2

Subdivide and build in New South Wales – Purchase Price: $480K
Strategy: This New South Wales block was subdivided into two lots then had two homes built onto them.
Result: The owners were able to sell the newly titled homes for $750,000 each and profit of $450,000.

Example 3

Small development in Queensland – Purchase Price: $1,040,000
Strategy: This Queensland property was demolished to make way for small unit development.
Result: After all costs, the units were sold for a total profit of $493,000.

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