This and an adjoining 6 sites were subdivided from another parcel and had sat on the market for some time. Why? Well they are steep and with many other available blocks in the area being flat (which are suitable for slab on ground homes) the outcome is cheaper and easier to plan. This can eliminate some 80% of the market. We’ll explain why in later videos.
On the positive side, the site is over 1200m2 and shaped like a nice piece of pizza (BBQ Chicken no doubt). Running up the slope and at the top of the property there are some magnificent views of the Sunshine Coast Hinterland. Two homes can see these views twice right…? I had worked with similar sites before so I decided to try an old strategy of designing a detached duplex (2 homes) on the property.
The reason I like to subdivide or create duplexes is simple – it’s a ‘two for one’ type purchase. You get two or more houses for the price of one block of land, plus some costs. This project can now be exposed to two lots of capital increase. If held, cash flow is doubled from the homes.
Though, I should however caution people looking to do a walk-up-start and try the same thing. You know the line ‘kids don’t try this at home’. Seriously though, just because this strategy works well here, it’s not a one size fits all solution. Especially for people looking to generate wealth from property development or property investment. This strategy can be pursed successfully by those that have the time, the expertise, the experience and the contacts to make it happen.
Just be aware and have ample time and/or capital to practice and learn or get expert help where needed.
I’ve consulted with many different people about what strategies will work best for them. Often, they’re constrained by time more so than capital. So in their case – it’s usually a better move to simply invest in quality properties that are consistently going to provide a good solid return, rather than go through this lengthy process.
Sloping blocks are indeed harder and each one can be very different. Depending on where and how the driveway works, to water flow, soil conditions and construction methods. As such the site was purchased subject to a council approval for the 2 homes.
There were also some challenges with the construction of these dwellings that were entirely out of my hands. To begin, a drought had been broken . It hadn’t rained in this area for what seemed like 1000 years (ok, well about 6 months). Then it all teamed down with the site open and exposed.
The property was full of beautiful, red soil, good progress was being made putting the frames up and then it poured down for two weeks straight. During this time some of the driveway was lost, and construction came to a halt. But, that’s part of the process – it happens, and it was something that simply had to be worked around. Another thing turned out to be more of an opportunity than an issue presented itself. A few of the walls and windows were tweaked to take advantage of the amazing views. This is something that is much easier to asses on site while under construction than looking a 2D plans on a desktop.
Progress is still underway with the project and you can stay up-to-date with how it’s all going over on the Property Surfer YouTube channel: https://www.youtube.com/channel/UCC93rH6QHpg6Ju0LB2hv9tQ