So far we’ve looked at granny flats, flipping, positive cash flow properties and in our fourth and final instalment we’re looking at splitter blocks.
The first thing you need to know is, much like a renovation project, you make your money on your way into the deal, said Watt Realty CEO Justin Watt.
“The biggest risk is that people don’t do their feasibility study right – considering things like service location and stormwater discharge – so work with someone who’s done it before or get a good town planner,” he said.
For new players, the easiest option is to find a large block already on two titles, though you may find you need to pay retail plus costs for house removal and services.
“The biggest dollars I’ve seen made recently is where the splitter potential wasn’t obvious because the block didn’t tick all the subdivision boxes. But splitting potential is not strictly down to zoning so it’s up to you to demonstrate a positive impact to council,” Justin said. “There is also real money to be made if you can split one block into three lots.”
If you’re on the hunt for splitter block gold try Wavell Heights, Chermside West or Geebung. If you’re looking closer to town in Windsor, Wilston or the Grange be wary of character homes that can’t be removed.
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