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What you need to buy a development in Toowoomba

What you need to buy a development in Toowoomba

Investigate Property loves some of the development opportunities that Toowoomba presents. For those of you who don't know much about the Toowoomba market, take a read of this previous article of ours 'Why Toowoomba?'. For those of you who have read it and realise like us that Toowoomba is a great place to invest, you may be now wondering, what can I expect for my money? Wonder no more! Here's a snapshot for you:

  • The development sites we source start at $220,000, with most around the $350,000 to $450,000 mark.
  • For this you usually get a house that can return approximately 4.5% (average) to 7% (well above average), although of course every deal is different.
  • We usually like the look of developing lowset units, though it all comes down to the numbers so we will consider two storey dwellings as well.
  • Typically we can achieve about 5 to 6 two bedroom lowset villas on a 1000m2 block, but it depends on the zone and land dimensions.
  • We recently purchased a site for a client for $325,000 that could achieve 3 units keep the house and an equity gain of 26%. Total development costs for that site including purchase price should be in the order of $955,000.
  • For a 4-6 villa site you should expect an equity gain between 21% and 24%, but as we say, every site is different and a higher or lower return may be warranted.
  • We also consider other opportunities such as subdivision sites.
  • All of the deals we have sourced thus far have excellent proximity to shops, employment and education, with a good 50% of them within 1.5km of the CBD.

It takes a few things to buy a development site in Toowoomba, however the main things are as follows: 

  1. You need to buy in the right location  
  2. You need to make sure the product that can be developed on the site suits the end goal.
  3. You need to be the first to know about certain sites (having a relationship with the agent) otherwise you could miss the best deals.
  4. You need to know how to solve problems cheaply to turn a dud into a stud of a site.  
  5. You need to know how the different zonings work and what can be developed in those zones.
  6. You need to know the costs of the different types of developments that can be built
  7. Finally you need to know that your product will rent or sell at the end of the development (depending on your goal) and ALWAYS have a Plan B that will allow you to move forward in your investing capacity.

ALL OF THE ABOVE we provide expert guidance in.

In summary, a development in Toowoomba is more achievable than you may think. With Investigate Property’s help we can ensure you buy a site with potential and conduct research to minimise the risks and to double check there are no ‘gotcha’ elements to the site such as flooding or lack of services and infrastructure. Click here to find out more about becoming a client.

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