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no surprise there, it has been on the cards for a while now. the prices of suburbs that have rezoning proposed have been ludicrous for quite a while.

It's an interesting one. I will say though that I sold a fully renovated 3x1 character home in maylands/Inglewood in 2012 that had parking behind a low gate but no carport or garage and it was not an issue at all surprisingly

Have you spoken to any builders? Look at it reaaaaallly roughly. Let's say raw land component for each villa is $125k (I'm blind guessing here as I don't know the area but you should know this), construction is $160k, another $40k for incidentals, some holding costs etc. Cost is around...

The important questions haven't been answered yet, even working out a rough cost is there the required margin for this product based on current purchase price of land and finished product? If there isn't (and I suspect that may be the case) then it is just a waste of time

Didn't you do any research before you bought the property? Assuming you're looking at doing grouped dwellings like villas/townhouses and not multis then it isn't just a matter of how many you can put on there but what the market wants. It may end up being more profitable doing less units...

Yeah 18 months ago it was a different proposition. No pain for me, I didnt purchase here... :)

Thanks. How much do you see villas selling for at current prices? Re balga, the issue is that the rents don't cover the mortgage, not for development sites being bought for nearly 500k. On top of that as they're now unprofitable I can almost guarantee we'll see the prices of these sites drop...

Yeah currently developing and I'm starting to look for next project. I think the buying will be better in a few months as more people wake up to the fact the market isn't as strong as it was previously.

I just don't get why people are paying that much and having to wait a few years when you can buy in balga for 30k more or so and start straight away. Incidentally the numbers don't work atm in balga either, these are the sort of clowns making it difficult for people to buy profitable sites atm

Most importantly you could do 3 single storey villas. Those 698 sqm ones would need 2 storey homes which would be uneconomical

whether you like it or not is only slightly relevant imo, whether the market likes it is far more important. im sure nigel satterley (as an example) isnt going to live in the new balga

price is rising from the little bit ive looked into it say 4-6 months ago but not fast enough to counteract the dwindling margins imo.

i would generally be pretty surprised if big time developers like say satterley and peet could be bothered about 728 or 692 sqm blocks becoming R40/R60

not necessarily you wouldnt be getting a lot of change (if any) from $300k turnkey per unit, finished incl all statutory charges imo which means from the $90k gross profit you need to take out agents and marketing fees, GST and then obviously pay 30% tax on profits. money would be decent but...

tax implications are a big one to consider too. imo if someone has had good capital growth from a property they can sometimes be better off cashing it in and paying CGT -50% instead of developing it and paying income tax + GST. it brings the gap down significantly and is sometimes not worth...

some are truly clueless. a friend had 5 appraisals recently for his property. i told him i felt it was worth around 510-525k, he had an appraisal at 430k. sold at 530k nearly 25% over the lowest appraisal.

i wouldnt bother with reno, at 315k for 700sqm id look at it as a block of land, of course you have the demo costs too. a good option for a FHB with say 550k total to spend, buy this, build a small house in front and then when the rezoning finally comes in do something with the rear...

that's not a bad buy, you could put a basic 3x2 on it now and position it to maximise subdivision potential when it comes in

I might just install some spyware on your PC and buy wherever you do Marisa, your track record in terms of combining areas to buy and timing those purchases is pretty outstanding :)

Totally agree, good post. Ultimately the numbers tell the story, in the last couple of years these "turds" have been much more profitable than posher suburbs