How to find, research and analyse subdivision opportunities

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Disclaimer Please be aware that tonight’s presentation is for illustration purposes only. All sub divisions will be different and have different challenges and conditions depending on several factors, including dwelling type, council, density plans, precincts and overlays to name just a few.REI encourages thorough due diligence be done on any possible deals and that a reputable town planner be employed to protect your interests.

• Heads up Subscription services team at Real Estate Investar

• Team of 6 Portfolio Managers

• Supporting 3,000 subscribers

• Manages the Concierge Service

Logan Horstead

• Concierge Portfolio Manager

• Property Investor 20+ years

• Personal experience in subdivisions

• Very specific knowledge around the subdivision process

Justin Hams

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1 Property

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Source ATO/ABS

3 levels of Property Investment

1.9m Australians

1 Property1.4m73%

2-4 Properties470,000

25%

5+ Properties30,000

2%

• Pays shortfall for 5 years+.

• Eventually sells and pays down personal debt.

• No retirement income.

• Strategy & numbers.

• Self funding portfolio.

• End up freehold• $100-$250k+

passive income in retirement.

• Has high income or buys every few years.

• Freehold in retirement.

• Min. retirement income.

Source ATO/ABS

What level are you aiming for?

Poll: How many investments do you want to own?

Where do you start?

Checklist• What can you borrow?

• Use Investar Search to find an area with suitable block sizes

• Take time to familiarize yourself with that area

• Understand land sale prices and check demand for land using Pricefinder

• Proximity to population centres can be a big plus

• Check the local council websites for planning maps and minimum lot size information

Poll: Would you like a free borrowing capacity check?

Finding opportunities using Investar Search

Notes for the presentation• The purpose of what we are going to

show you is to demonstrate the REI tools

• While we cover a lot of the things that should be done during feasibility studies this is by no means everything that needs to be considered

• There is plenty of great content available on line and checklists you can source for free

• Always consider your personal financial circumstances and the implications of things like GST and CGT

• Seek advice from a professional!

Investar Search

Investar Search

Search Results

Search Results

Search Results

Aerial Shot

Search Results

Planning Alerts

Zoning

My Valuer / My Research powered by PriceFinder

PriceFinder Property Report

Interactive Maps

Interactive Maps

Interactive Maps

Check utilities

Possible division (1 into 3 lots or 3 x Town house)

300sqm

300sqm

300sqm

PriceFinder Sales Data

PriceFinder Sales Data

Land Sales

House Sales Data

Land sales – Under 500sqm

New land approx size (300+sqm) $420K approx

House & Unit Sales – Under 350sqm

New build approx size (300+sqm) $530K – 960K

Purchase Price $900,000Stamp Duty $51,000Subdivision cost $149,000Total costs approx $1,100,000

Sell block x 2 (@$400,000 each) $800,000Hold Existing dwelling cost $300,000

Equity after sale + add deposit $150,000

What do we know so far

Feasibility (1 into 3 lot)Mock up feasibility on 457 Mitcham Rd, Mitcham

Purchase CostsPurchase Price $900,000Stamp Duty $ 52,000Legals $ 2,000

$954,000Development Costs

DA/Engineering/Approvals $ 20,000

Sewer $ 20,000Water $ 10,000Stormwater $ 15,000Telecommunications $ 20,000Infrastructure Charges $ 56,000

Plan Registration, Legals, etc $ 5,000

$146,000

 Total Investment Cost$1,095,000

Purchase Price $900,000Stamp Duty $51,000Subdivision cost $149,000Total costs approx $1,100,000

Sell block x 2 (@$400,000 each) $800,000Sell Existing dwelling $450,000Total sales $1,250,000

Cash after sale $150,000

Mock up feasibility

Poll: What is your biggest challenge with investing?

• We’ve searched 900k to 1.2m properties

• We’ve narrowed our search based on our specific criteria

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• Loved what I saw, but I am time poor?

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