I am currently developing 3 cottages with a profit of $300,000. Property is an exciting, AWESOME and lucrative vehicle to choose to make your lifestyle all you desire. – Jo,VIC
Location: Romsey, VIC
Project: 1680sqm of land with an existing miners cottage at the front. The land is rectangular 20m x 80m and Jo is adding 3 miners cottages to the property – all 2 bed/1 bath.
Profit: 39% Margin on Development Cost (MDC)
Strong willed: Jo was determined to get started in property but parts of the development process have taken longer than expected for her. She went into it with a personal belief that she could do it and although she has met many obstacles along the way, she has made huge efforts to increase her knowledge and move faster and is now about to start construction on this profitable site. Jo decided to do our property development course after she had already gotten involved in a development project, she wanted some skills and tools to help speed up her results and profits. One of the biggest things with development is time – everything will usually take longer than you think! And you need to be organized and diligent to keep added time to a minimum.
Communication: Jo let her family, friends and everyone she met know that she was interested in property and looking to get started in property development. Her friend was selling her property and knew that Jo was looking for one so she contacted Jo and Jo purchased her site for $155,000 including an existing unrenovated 2 bedroom miners cottage.
Jo discovered that the area grossly undercatered for the elderly. The cottages in this project are designed for the elderly and sit 170m from the doorstep of the town’s medical centre and the furthest town amenity is a 350m walk.
Jo knew that the site could be subdivided but contacted the council to check. They confirmed that it could be. Jo was very involved in this development and decided to save $5k on not employing a town planner to put the planning permit in to council for her. This ended up costing her a lot in terms of her time as her DA approval was delayed by 18 months. If doing it again Jo says that that $5k would be money well spent as this process provides the whole foundation for the development. When asked what learning experiences she came across Jo said that next time she will be checking where all of the services (electricity, telelcom, water etc) are as in this case some of them were at the opposite side of the road and at the rear of the site which made it more expensive – you can use the basic site checklist we have provided above, but don’t limit it just to that. She also suggests that you always engage appropriate consultants for the size of the job you are working on and also ensure that they know the area and have worked in that area previously.
Jo submitted the planning permit application for an additional 3 dwellings to the land in 2007 and gained approval in July 2010. Although there was no caveat attached to the title of the land, Jo had an objector to the development who engaged a town planner to object on their behalf. This ended up taking almost a year for Jo to overcome. The last 6 months have been spent getting building approval and bank finance and construction is due to commence in 2 weeks.
Getting planning approval. Jo suggests that you always try to get on the right side of council and stay on the right side of town planners – it is worth everything to your progress. Jo says…“For a development to take this long – it has been tough to stay motivated, I just stayed focused on getting one problem solved at a time – quickly”
Getting planning approval, she says “To sit in a council meeting and have the vote go your way for approval is awesome. Councillors congratulated me after the meeting on such a ‘wonderful thing you are doing for this town’ – that was really encouraging”
“Property is an exciting, AWESOME and very lucrative vehicle to choose to make your lifestyle, and life, all that you desire. Go back to basics, do your research, check out property club and you will already be so much more ahead than I was.”