25 Jan 2024 Podcast: Q&A – Live Development Feasibility on 5 Potential Sites with Baz Komak
Today’s episode is a unique and exciting one as Evelyn brings back property development expert Baz Komak.
This time, Evelyn has gathered five potential property development sites from our listeners, and Baz is going to assess them in real-time.
Join us as Baz takes a deep dive into each location, evaluating the feasibility of development and crunching the numbers to determine their profitability.
This hands-on session provides listeners with a firsthand look at how a seasoned property developer approaches site analysis and decision-making.
This dynamic and informative session is one not to be missed! How many of the five sites do you think are worth considering?
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You Have My Interest is brought to you by Everlend, a mortgage and finance broking firm built for the purpose of educating and empowering you to make informed financial decisions tailored to your wealth goals. Find out more and book in your free initial consultation at https://www.everlend.com.au/
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Find out more about You Have My Interest at everlend.com.au/podcast and connect with us at podcast@everlend.com.au
You Have My Interest provides information and educational content relating to mortgages, finance and property. You Have My Interest‘s content is general in nature and does not take into account the individual financial, legal or tax needs or objectives of its audience members.
It is not intended as a substitute for professional advice. Listeners should seek out a licensed professional to discuss their individual financial, legal and tax requirements.
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Podcast produced with Apiro
Please find a Podcast summary below with the interview highlights:
Evelyn and Baz’s episode focuses on analysing real-life property development opportunities in Victoria, highlighting key considerations when assessing potential sites. Here’s a summary of the discussion:
Key Points:
- Case Study 1: Boronia (729m²)
- Outcome: Not suitable for development due to zoning and overlay restrictions requiring minimum lot sizes of 500m².
- Lesson: Verify zoning and overlays before purchase to avoid costly mistakes.
- Case Study 2: Norlane (696m²)
- Outcome: Existing plans and permits for a second dwelling, but the numbers don’t stack up, with minimal or no profit margin.
- Lesson: Always calculate costs (purchase, construction, permits, finance, etc.) and ensure sufficient profit margin before proceeding.
- Case Study 3: Unit on a Small Block
- Outcome: Not viable for further subdivision due to small block size (300m²) and shared driveway (body corporate).
- Lesson: Consider council preferences and restrictions on subdividing already small or shared lots.
- Case Study 4: Cheltenham Court (Multiple Dwellings for Sale as a Package)
- Outcome: Possible for development but depends on council approval and neighbourhood character objections.
- Lesson: Collaboration among residents is key, but council and neighbour objections can complicate large-scale projects.
- Case Study 5: Chadstone (626m²)
- Outcome: Feasible for side-by-side duplexes based on zoning and land size, but Monash council’s resistance to dual crossovers could pose challenges.
- Lesson: Engage with councils early and consider pre-application meetings to gauge support. Use cost-effective build options like turnkey solutions to improve margins.
General Advice:
- Quick Decision-Making: The ability to quickly assess and reject unsuitable sites is crucial to avoid wasting time and resources.
- Construction Costs vs. Resale Value: Ensure the potential resale price justifies the construction and associated costs, especially in lower-cost suburbs where margins are tighter.
- Council and Zoning Checks: Always review council zoning, overlays, and neighborhood character policies to ensure the site aligns with your development goals.
- Backyard Developments: Typically more viable in areas with land prices above $750,000 due to higher resale potential offsetting construction costs.
Final Tip:
When considering backyard developments or subdivisions, focus on areas where land values and potential resale prices justify current construction costs. Avoid low-value areas where margins are too slim.
Baz and Evelyn encourage listeners to submit site queries and continue engaging with the podcast for further insights.