Do you have a Pot of Gold in your Garden?
You may be surprised at the amount of money your back yard is holding for you, just waiting to be discovered!
Could $100,000 – $200,000 or even more give you a substantial boost to your lifestyle or retirement?
Have you noticed in your area people who have found that Pot of Gold by subdividing their land?
There are many ways of going about this….you may wish to simply knock everything down and build 2, three or even more new homes. You may want to sell part of your land and stay in your house thereby reducing maintenance and increasing income. Or you may prefer to build a new house in your yard, move into the new house and rent your old house, giving you an extra income. You could also build two or more new homes, live in one, rent or sell the other/s. You could also subdivide – sell and move on to that new life you have been thinking about.
All this depends on what your local Council Development Plan allows.
In some Council areas they are very keen on “in fill lots” and will allow land to be subdivided to a minimum of 270 sqm. So in a basic nutshell this means if you have now land that is greater than 550 sqm with a minimum frontage of 15 mt you may be able to subdivide.
But….don’t be fooled into thinking this is an easy process, it takes time, money, patience and commitment. Anything that offers such a great gain usually does. It will take anywhere between 10 months to two years depending what you do. Again depending on what you do you will need to put in anywhere between $20,000 – $45,000 to pay for such things as Surveying costs, Council fees, Legal fees, Land Title fees, services and etc. AssetZ can manage all this for you taking away most of the minefield that comes with subdivision. Many of our clients find it easier and more profitable to simply pay the fees and costs for the subdivision, then sit back and get paid on us selling a house/land package to our clients. Case example – Client A has a 1950’s house with an old garage in the backyard down the end of the driveway. The land was a level 776 sqm block with a 16 meter wide frontage. The Council for this area is pro ‘in fill’ development. So what was discovered best for Client A after doing a tougher feasibility study and concept plan was to keep the existing house, knock down the garage, put a driveway down the side and build a new 3 bedroom house. The existing house and land was valued at $350,000 with a mortgage of $145,000. Thereby equity of $205,000. The cost to subdivide was $21,000, construction cost $210,000, miscellaneous costs ie: bank, demolition, holding cost etc. $6,000. Plus the existing mortgage of $145,000. A total cost of $382,000. The original house is now valued at $340,000 and the new house is valued at $360,000. Minus total costs of $382,000 provides equity of $318,000 plus an extra house. Client A now lives in the new house and rents out the existing house @ $350 per week, giving an extra income of $18,000 per annum minus costs, plus a substantial reduction in tax each year.
Case example – Client B had a very large block of 1600sqm with on old house. This was valued at $750,000 with a mortgage of $500,000 so equity of $250,000. The best solution that suited this client was to knock down the original house and build two new 4 bedroom townhouses.
The costs were $25,000 for subdivision, $10,000 for demolition, rent for 12 months @ $18,000 and build at $930,000 plus miscellaneous at $8,000. Total costs $983,000 plus existing mortgage = $1,483,000.
The two new townhouses have been valued at $1,100,000 each.
This client is living in one of the new townhouses and sold the other thereby providing a new family home with a mortgage of $383,000 and equity of $717,000.
Case example – Client C just wanted to better utilize a rental property in their portfolio. This property was on a 695 sqm corner block. The house was bringing in $370 per week in rent. The existing mortgage was $220,000 and the property was valued at $385,000. Equity of $165,000 plus annual income of $20,000 minus costs.
This client is an astute property investor so the best solution for them was to subdivide the land and have AssetZ sell the house/land packages to our clients.
As the block was on a corner we were able to get 3 by 3 bedroom terraces approved by Council.
The costs were $25,000 for subdivision, $10,000 for demolition and miscellaneous of $13,000 [existing mortgage payments with no tenant]. Total costs $48,000 plus existing mortgage = $268,000.
This client was paid on each 3 Land Sale Contracts at settlement. Each block was valued at $220,000 a total of $660,000. Minus costs of $268,000 equals a PROFIT of $392,000. Very cleaver!!!
It will cost you absolutely nothing initially and of course with no obligation to find out if it is possible to turn your backyard into a Gold Mine.
The simple question is…..
Do you have level land over 550 sqm with a minimum 15 meter frontage?
If the answer is YES.
Contact us here at AssetZ to find out if you too have a Pot of Gold in your garden.
You can be assured you will not be strung along….I have been doing this since 1993 and know what is possible and what is not. If once I have completed my research and find it is not possible I will tell you immediately.
If however, I find there is a good possibility and explain why and you wish to explore further a fee of $375 is then charged which will provide you with a detailed and individual Feasibility Study on potential subdivision possibilities for your property. At this stage I will need some information from you to accurately complete the Feasibility Study. Once I have all the relevant information I can then put together different scenarios of what is possible on your land. This allows you to decide which path, if any you wish to go down. As well I will provide you with expected costs and time frames to complete each project and outline what you will need to do during this process. You will have everything you need to make an informed and educated decision.
Of course I strongly recommend you make your own enquires and do your own due diligence before you make any decisions.
Paul Douglas Irving