Real etate development advice

[capthook]

hello all...

I need input on a real estate development matter. I own a r2 75 ft lot in Calgary, in the Ramsay/Inglewood districts which has a 105 year old tear down on one lot. My plan is to develop the empty with a 2000 sf nice house, while living in the tear-down (1 year), then when its done, move into the new house and redevelop the second lot. Once that is completed (1 year), I would sell the first house, which I have now lived in for 1 year, and move into the second new house. So my question is this: does this plan make sense from an investment perspective and/or from a tax perspective, and are there any other development approaches that would better optimize the return from developing these lands. Your thoughts?

Capthook

 

[gwasser]

QUOTE (capthook @ Dec 14 2010, 05:44 PM) hello all...

I need input on a real estate development matter. I own a r2 75 ft lot in Calgary, in the Ramsay/Inglewood districts which has a 105 year old tear down on one lot. My plan is to develop the empty with a 2000 sf nice house, while living in the tear-down (1 year), then when its done, move into the new house and redevelop the second lot. Once that is completed (1 year), I would sell the first house, which I have now lived in for 1 year, and move into the second new house. So my question is this: does this plan make sense from an investment perspective and/or from a tax perspective, and are there any other development approaches that would better optimize the return from developing these lands. Your thoughts?

Capthook

Are there allready new developments in your area that you could use as a comparable to determine a future sale price? And if so, what would your profit margin be? (I.e. potential sale price minus development costs)

If you are the first or one of the first to build, I would wait until more inventpry is build and learn from the mistakes of others. They also will set the bar for you in terms what is feasible.

Is it your plan to keep one of the two newly builds as primary residence or is the whole thing an investment? Also, are you making a living of this or do you have another primary source of income. Talk to an accountant as this may have various tax implications.

Inglewood will be far from any future LRT line wouldn`t it? So will this restrict your development options? I remember the City has also made some plans as to how to develop the area. Wouldn`t hurt to check what they are planning in the area.

Hope this gives you a start.