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"Investment House provides a complete project management and buyer's agency service that allows you to acquire select investment properties with maximum profit potential - all 'without getting your hands dirty'.
Whether you're after a four bedroom home in a high-growth suburb for medium term capital gains,or a development for immediate profits, we can help you select the right property or development project.
It's one of the most effective yet hassle-free ways to tap into the very promising Brisbane market."
Whether you're after a four bedroom home in a high-growth suburb for medium term capital gains,or a development for immediate profits, we can help you select the right property or development project.
It's one of the most effective yet hassle-free ways to tap into the very promising Brisbane market."
Colin Ferguson
Business Development Manager
Business Development Manager
Case Study - August 2005
Last month we got a great deal, this month it was a steal!
When the price and conditions are right… buy it! Last month we discussed a property that was on the market for 2 months and we got a deal. This month our client′s got a steal. It wasn′t so much the price (which was very good to begin with) but the property′s circumstances and the contract conditions that made it a great deal.
Firstly, let′s discuss the property′s circumstance.
The property is a large corner block 4.5km from the GPO with an old house in the middle. It was being sold with a “slider” DA. The approval was to
- subdivide the site into two 400m2 blocks,
- move the old house across onto one block and renovate it, and
- build a new house on the other block.
But there was a problem.
Based on the approved “slider” subdivision strategy, the project didn′t work. It simply wasn′t profitable. There were two reasons for this.
in the current market, it costs as much to move and renovate an old house as it does to build a new house - but you get a much higher price for the new home than the old renovated house, and the DA for the new house did not utilise the full potential of the city views.
One of the most important things when doing a property development is “seeing the potential in a site”. You have to know the subject backwards, and part of that is using the council′s procedures to your maximum benefit.
The Investment House team came up with a great alternate. Instead of walking away from the deal they recommended the client take on the project and use the existing DA to demolish the existing house and subdivide the land into the proposed two lots. At the same time, they would submit a new application to build two new homes that took full advantage of the city views. This represents a major windfall to the investor.
Let me explain. Normally it takes about 6 months to subdivide a block of land, 3 months for council approval and 3 months for the actual subdivision. On the other hand, it only takes 3 months to get council approval for the new designs. This meant that the subdivision works could be done (using the existing DA) at the same time the new designs were being approved. This twist basically saved the new owner three months of holding costs (say $15,000) and this, coupled with the new designs, made the deal work very nicely indeed.
And another little plus. As part of the contract negotiations, the Investment House team was able to secure a 90 day settlement period. This really put the icing on the cake. Not only did we save 3 months of holding costs in regards to the DA (around $15,000) but we were able to undertake the initial work (including the subdivision and the new design applications) without the clients having settled on the property. That adds up to another $10,000 saving.
It pays to know how to use the system to make a profit.