How much your property is worth as a development site?
We have made it easy to work out what your property might be worth as a development site.
The end value is calculated on the number of new parcels of land that can be created.
To work this out you need to look at the total land area minus any site overlays, like water, vegetation, koalas, slope etc.
Then you need to subtract 10% for access and roads.
To work out the value of the property in the above example, you need to work backwards from the end sale price
10 house lots sell for $330,000ea. = $3,300,000 minus GST = $3,000,000
Take away average development cost per site 10 x $160,000 (cost $150,000-170,000ea per new lot) = $1,600,000
Leaving $1,400,000 for land purchase costs, stamp duty, legals AND your profits. (20% = $660,000)
Purchase price should be around $700,000 maximum!
Something that sells all done for $3.3m would be purchased for around $700k and need to have $1.6m in costs spent to develop it.