by Meighan Hetherington www.propertypursuit.com.au
I will continue from where I left off last month and share with you some more questions that I was asked by the audience at the recent property investment seminar that I spoke at.
I want to get into property development by buying an LMR site and building townhouses, where should I buy?
STOP! Before you throw yourself headlong into property development spend a lot more time researching. Obtain a copy of the Brisbane City Council City Plan, building codes, South East Queensland Regional plan and local area plans. You need to gather a great deal of information about development costs, restrictions and potential selling prices to understand timeframes and overall costs. We have seen many examples of Mums and Dads putting their life savings into a site then having to off load it at a reduced price because they cannot achieve a reasonable profit margin.
I want a bargain, how do I find one?
Bargains are not found, they are negotiated. Occasionally we will receive a telephone enquiry along the lines of "let me know if you find a bargain". Sorry, it just does not happen like that! Sellers do not advertise their properties for bargain prices, they advertise higher than they expect to get then it is up to the purchaser to use their skills to bring the sellers expectations down below market value thus creating a bargain buy.
A final quick word on the market: the frantic activity of the past 6 months has not slowed down and prices are still pushing upwards. If you have been thinking about buying but waiting for a lull in the market then you will be waiting for a very long time!