This is my rant...
It is been really difficult to secure a good development site (a profitable one) for long time now.
I see 3 types of buyers..
1. Average mum and dad wanna be developers targeting dual occ sites
2. your local Small medium builders targeting Multi unit, townhouses sites
3 Overseas developers/investors targeting apartment sites.
option 1.
Those developers are paying way too much, underestimating build cost and soft cost associated with small development. i seen some of them are calculating future capital growth and adding that to acquire sites.
Good luck! if they can make money out of deals..
i stopped looking at dual occ sites. period.
Option2.
Being builders they have advantage on cheaper construction cost. so they are paying a tiny bit of premium to get small project.
still can compete in this market. but it is getting really hard as interest rate keep dropping.
option 3.
Not my cup of tea...
but still had a shot at it last weekend. confirmed by agent that i have the deal.. sent signed contract... to be told after few hours that someone else offered more money then what i offered.
ps. this is based on eastern seaboard states, especially NSW, VIC
what are your experiences securing deve sites in last 6 months?
It is been really difficult to secure a good development site (a profitable one) for long time now.
I see 3 types of buyers..
1. Average mum and dad wanna be developers targeting dual occ sites
2. your local Small medium builders targeting Multi unit, townhouses sites
3 Overseas developers/investors targeting apartment sites.
option 1.
Those developers are paying way too much, underestimating build cost and soft cost associated with small development. i seen some of them are calculating future capital growth and adding that to acquire sites.
Good luck! if they can make money out of deals..
i stopped looking at dual occ sites. period.
Option2.
Being builders they have advantage on cheaper construction cost. so they are paying a tiny bit of premium to get small project.
still can compete in this market. but it is getting really hard as interest rate keep dropping.
option 3.
Not my cup of tea...
but still had a shot at it last weekend. confirmed by agent that i have the deal.. sent signed contract... to be told after few hours that someone else offered more money then what i offered.
ps. this is based on eastern seaboard states, especially NSW, VIC
what are your experiences securing deve sites in last 6 months?