What's your thoughts on buying a property with a large section, then subdividing and/or getting consent to put a simple unit out the back to maximise the investment through rent and capital?
That's the only way to make serious money. When people say they don't make land anymore subdividing is the closest thing to making more land. Have done it 3 times and least I have made 250k on the new build and the old house in front still went up in value. I build the houses myself so that profit also includes income
@@colincameron5219 how much does it cost to subdivide? I'm looking at a 950m2 house with some land, costing $650K but not sure if doing this plan is worth it or making it easier for myself and putting a unit there instead etc
@ninjahstef depends were you are in the country as each council has different costs like park green space contributions. Also contributions to existing infrastructure. Also some councils ask for geo tech engineer reports etc etc. One I did in Christchurch 3 yrs ago which was on tc2 land all up was late 40k that included surveyor council contributions legal and geo. But Christchurch council had cut park contributions down from 22k to 8k. The one I just finished code of compliance yesterday and subdivision plans to lawyers yesterday comes in at about 35k this was in Waimate. Won't talk about the one I did 10plus yrs ago as not relevant with costs. The last two I built the same 4brm plan on both so knew my costs approx both came in at around the 270k all up first one values in at early 600k and last one late 500k first one rented at 590 a week this new one will be 500 a week. So both good yeild plus great capital gain on paper still got both the existing houses in the front. So when you take into account rental return on both the existing and new combined I am getting between early 8 percent on one and late 8 percent on the existing and new. It's the only way to make serious money but beware I and only I built it apart from plumbers and sparky I did everything and I mean everything
@@colincameron5219 Hamilton City, slightly undervalued. However, we only have 650K max approval so I was considering buying a 3 bedroom with enough land to put a unit or subdivide in 4-5 years time while renting the front house out, to maximise the profit. Not sure if it's a solid plan, as you built your houses yourself that would've saved you a lot of money. Would movable two bedroom homes be worth a look at? Something easy to put there, is it cheaper? Seems so, but with your experience you would know more than I do.
@ninjahstef sounds good can't lose on buying land that can be subdivided later. Personally wouldn't look at moving an old house on as the money and time as you will have to bring up to code. Which on an old house shifted onto a new site is hard to price. Also all the healthy home rgs. Just build brand new. Also look at min 3brm, why every man and his dog has brought/built 2brm 2 storied shit boxes for rentals there is only so many young proffessional couples out there. 3or 4 bedroom will always be in demand
Great video. Invest based on numbers, not emotions 💯
As a first home buyer, I am learning a lot from your videos. Thank you.
What's your thoughts on buying a property with a large section, then subdividing and/or getting consent to put a simple unit out the back to maximise the investment through rent and capital?
That's the only way to make serious money. When people say they don't make land anymore subdividing is the closest thing to making more land. Have done it 3 times and least I have made 250k on the new build and the old house in front still went up in value. I build the houses myself so that profit also includes income
@@colincameron5219 how much does it cost to subdivide? I'm looking at a 950m2 house with some land, costing $650K but not sure if doing this plan is worth it or making it easier for myself and putting a unit there instead etc
@ninjahstef depends were you are in the country as each council has different costs like park green space contributions. Also contributions to existing infrastructure. Also some councils ask for geo tech engineer reports etc etc. One I did in Christchurch 3 yrs ago which was on tc2 land all up was late 40k that included surveyor council contributions legal and geo. But Christchurch council had cut park contributions down from 22k to 8k. The one I just finished code of compliance yesterday and subdivision plans to lawyers yesterday comes in at about 35k this was in Waimate. Won't talk about the one I did 10plus yrs ago as not relevant with costs. The last two I built the same 4brm plan on both so knew my costs approx both came in at around the 270k all up first one values in at early 600k and last one late 500k first one rented at 590 a week this new one will be 500 a week. So both good yeild plus great capital gain on paper still got both the existing houses in the front. So when you take into account rental return on both the existing and new combined I am getting between early 8 percent on one and late 8 percent on the existing and new. It's the only way to make serious money but beware I and only I built it apart from plumbers and sparky I did everything and I mean everything
@@colincameron5219 Hamilton City, slightly undervalued. However, we only have 650K max approval so I was considering buying a 3 bedroom with enough land to put a unit or subdivide in 4-5 years time while renting the front house out, to maximise the profit. Not sure if it's a solid plan, as you built your houses yourself that would've saved you a lot of money. Would movable two bedroom homes be worth a look at? Something easy to put there, is it cheaper? Seems so, but with your experience you would know more than I do.
@ninjahstef sounds good can't lose on buying land that can be subdivided later. Personally wouldn't look at moving an old house on as the money and time as you will have to bring up to code. Which on an old house shifted onto a new site is hard to price. Also all the healthy home rgs. Just build brand new. Also look at min 3brm, why every man and his dog has brought/built 2brm 2 storied shit boxes for rentals there is only so many young proffessional couples out there. 3or 4 bedroom will always be in demand