When it comes to property investment, the main question on everyone’s mind is: Is your property purchase going to make you money? Whether you’re a first-time investor or someone looking to grow your portfolio, understanding how to evaluate a deal is crucial. In this blog, we’ll walk through a simple process to assess whether a property is worth investing in, especially if you’re considering land subdivisions.
Why Focus on Land?
One of the easiest ways to get started with property investment is by purchasing land. Here’s why:
- Fewer complexities: You don’t need to deal with builders or extensive construction work.
- Quick turnaround: Land can be subdivided and sold faster than built properties.
- Less financial risk: Fewer moving parts mean fewer potential issues.
Starting with land subdivisions can be a great entry point for most investors. It allows you to learn the ropes before diving into more complex developments, like building homes or townhouses.
Step-by-Step Guide to Evaluating a Property
So, how do you know if a land subdivision will make you money? Here’s a simple step-by-step process you can follow:
Look for development stock
Focus on areas where land is being sold by developers. These areas are likely to have a lot of activity, which can mean more opportunities for you.
Go to a property search site
Begin by visiting a trusted property search site, like realestate.com.au. For example, let’s focus on Brisbane – an area known for its safe and stable market.
Filter for land only
To keep things simple, filter your search to show land only. This will help you narrow down your options quickly.
Set price filters
You want to look for land priced between $300,000 and $700,000. This is the range where you’re likely to find good deals for subdivision.
Sort by lowest price
Once you’ve set your filters, sort the results by the lowest price to see what’s at the bottom of the market. This is a good way to find potential bargains that you can develop and sell for a profit.
Ex miner makes $900,000 from property by getting 2 FREE blocks of land <– CLICK HERE FOR NEW VIDEO
The Patience Game
It’s essential to understand that finding the right deal takes time. You might need to assess 50 or even 100 properties before you find one that meets your criteria. However, the effort is worth it. Once you find a property that ticks all the boxes, it can lead to significant profits.
One property might make you $100,000 or even $500,000, but it could take several months to land the perfect deal. The key is persistence. The more properties you evaluate, the better you’ll get at spotting opportunities.
Final Thoughts
The real question is: Is your property purchase going to make you money? If you follow the steps above, you’ll be well on your way to answering that question confidently. Land subdivisions offer a relatively straightforward path to property investment, but like any business, it requires patience, research, and a willingness to crunch the numbers.