Types of development
This is one of the easiest ways to enter into the property development market. In most instances you can purchase old houses on blocks as small as 600sq/m and apply to the council to build a duplex. Duplexes are normally single level houses with a common wall. Corner lots are generally highly sought after for duplexes.
In a number of suburbs around Brisbane you will find old homes sitting on large allotments. In some cases this was due to the purchase of two small lots to build a large family home or a single lot large enough for development.
These family homes generally come up for sale as the original owners approach retirement. As these homes are located in prime locations close to amenities in most cases the original home gets demolished to make way for two new detached homes.
These new homes are in great demand and supply is limited due to the unavailability of land so close to the city. Therefore for maximum growth potential this would be the property of choice.
There are certain properties that are worth keeping. As we are dealing with old Queenslanders, the construction is generally tin and timber. Therefore it is easy to alter the home to fit on half the block. This leaves you with a spare block on which you can build a new house. Generally you would renovate and sell the old house and hold the new.
Townhouses can only be built on areas with special zoning. The land size and positioning can determine the number of townhouses allowable. Careful research is required on what is allowed as most developments of this type is impact assessable. This means that neighbours can lodge objections to your development. This can slow down the approvals process and lead to unexpected costs.
As usual careful research will minimise risks.