Property development question.

[Bill Douglas]

Originally Posted by WPOZZZ

What is the current zoning of the land?

Residential. And you can have three, three story high, properties on a section., and this is two sections. The council (city hall) are very friendly towards higher density so the eight properties in the 1000 square meter would be an option without too much asking.

Originally Posted by sc_rufctr

I'd say 660k per unit or $3,960,000 total for the land package.

That's what I'm wondering. There is the 8.4 mil "profit" so I'm thinking I get the 8.4 not 3.96. But somewhere in between is where developers operate. As it is I could get more than that with the two ordinary houses on the adjoined two properties equalling 1000 square meters. A friend bought a very ordinary place in an ordinary back street location for 2.2 so it shows how nuts the property market is around here.

[WPOZZZ]

Why not partner with the developer so you share in the profits. As a landowner, you only get what the land is worth. The developer makes the profits because they are putting their money at risk. There are lots of other costs associated with developing a property such as paying the General, architects, engineers, permitting, and zoning changes, if needed. There are also palms that need to be greased.

So, you tell them you put up the land, they pay for the architect, engineers... and you guys split the profits.

[Bill Douglas]

Yes, developers also have an established good working relationship with "all of the above", whereas I wold be the new boy.

Plus I don't have the cash or the friendly banker relationship to have the money to do it on my own. I just want to be armed with knowledge so I'm not giving too much money away to the other guy. So hence trying to quantify what the land is worth in the best possible scenario.

[sc_rufctr]

Originally Posted by sc_rufctr

...

But I wouldn't consider doing anything like this right now. I'd wait until the pandemic is well behind us.

Just re-saying...

[Bill Douglas]

Originally Posted by sc_rufctr

Just re-saying...

Exactly. We're all going to die or life will be more normalised.

As NZ said we have really supply problems here in New Zealand. Container ships don't bother to come here because we are too much like small fry and they can get back on schedule by sailing straight past us.

[sc_rufctr]

18 to 24 months... Not long.

[nota]

Originally Posted by Bill Douglas

Interesting, thanks.

So guys, the big question. What is the most the land is worth.

if you own it
talk to a bank about a loan
then apply an adjustment 20% ? or so

[Bill Douglas]

Originally Posted by nota

if you own it
talk to a bank about a loan
then apply an adjustment 20% ? or so

Great advice. Once you sell it, it's gone. No going back. As I've always said about property - buy it and hang onto it, and don't sweat the details. I may wait and see if we all live or die (or go bust) with the new Southern Africa covid. 18 to 24 months isn't long in the bigger picture of things