Real Deal Rural Subdivision 1 into 3 With Ben Markwell

Why a 60 acre rural subdivision….? Why NOT if it stacks!!

Initial figures on the deal LAND PURCHASE PRICE$420, Council Development Approval$4, Preliminary Solicitor$1, Stamp Duty$12, rates$2, $18, road access$15, Construction Surveying$5, fencing$10, Pump$20, power getting quote$30, Interest on loan$10, $90, Council Headworks$14, Completion & Conveyencing$2, Selling Agent Commissions$20, Marketing$1, GST$18, $65, Total Development costs$594, Selling for $230,000 each$735, Total Profit$140, IN 6 MONTH DEAL

The Block

Why this 60 acres…. Great positioning with fantastic outlook. If you don ’ t know… Who does ? Had water and could possibly be to every block Great set of cattle yards Had existing waterline running from river.

Making the decision.. Risks Power of a strong network Identifying valuable resources Market analysis with tools such as PriceFinder Having great, knowledgeable finance brokers on your team Work with what you know. What helped Will they sell? How long will they sit on the market for? Is there demand for 3 new 20 acre blocks? Will low demand mean I have to heavily reduce to move? $$$ - What cash is required and how will it effect my position

Subdivision requirements Power to all lots – How, what, where…. Call after call, after call worked out the process. Administration work only involvingcompleting new subdivision application.They send “budgeted estimate” which came to $24,500 After inspections they send “offer” which came to $23,392 Fencing – All internal and external boundaries to be fenced. Pretty straight forward just had to get quotes. Road Access – Each lot must have bitumen access points from the road. These are designed to set council specifications and can be found on council websites. No engineer required Was able to submit “Works on road reserve permit” Saved a few thousand dollars

Subdivision requirements TelecommunicationsWHY DOES A FARM NEED A PHONE!?Contested this requirement and was successful. Water…Fortunately it was not a development requirement. However the question was by megetting water to the lots how much extra would I get?Or… even worse by there being no water would they sit & get far lower price 

How to best manage fencing, road access & waterline install? Individual contractor- Best at what they do and peace of mind - Speed to complete - Cost = $62,000 Local bloke to do the lot – with his trusty dog and rustybackhoe…. - Cost = $38,000 (exc material) $47,000 inc - More project management. Risk of delays and low quality. - Do your research and ask lots of questions! -

New Survey Plan

Starting to take shape

End Result LAND PURCHASE PRICE$420, Council Development Approval$4, Preliminary Solicitor$ Stamp Duty$12, rates$2, $19, road access$16, Construction Surveying$7, fencing$16, Pump$6, power getting quote$23, Interest on loan$14, $83, Council Headworks$14, Completion & Conveyancing$2, Selling Agent Commissions$20, Marketing$1, GST$23, Project manage, travel & misc$2, $62, Total Development costs$585,684.00(almost $10,000 under estimate)

End Result Sold lot 3 in March for $247,000 Sold lot 1 in June for $261,500 Lot 2 expected sale price $266,000 Estimated total sales $774,500 Estimated total profit $188,816

Learning lessons ITS WHAT YOU KNOW & WHO YOU KNOW!! ! Surveyor / Agent / Fencer / Contractors – It’s not what you know but WHO you know…. Work with what you know Be ready and willing to take massive action.

Thank You Ben Markwell