I live in South Africa outside a small but rapidly growing town. We live on a plot about 3hectares big, and the property next to ours is the same size. The owners of this property have not lived there for 6 years and struggle to keep a tenant in the single family home. The home has now been vacant for so long that the electricity and water has been shut of and would take a large amount of money to reconnect.
My plan with this property is to buy the ,now useless to them, property and sub-divide the rest of the land into 4 smaller properties, one containing the ready built home. I think I will get a lot of money of this as the land still has incredible value although the house has none.
The house may also have worth added to it with the electricity switched back on and a lot of maintenance done.
I want some advice as to the steps needed to plan the the dividing and calculate profit before I even think about entering the deal or making an offer.
Also what would be the best way to finance this deal, seeing as I am still a student. Luckily I am on a bursary and have no student loans. I have a very small income from the bursary and not enough capital to make a down payment.
Please if you have any advice reply on this post.
First, you'll likely need a money partner, not just a lender. Secondly, the laws and restrictions on subdividing property will be as per local laws and procedures. No one here can help you with that. Contact the local agencies that deal with building permits and zoning.
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