Any opinions on this LMR site in Moorooka?

[sasjes]

Hi guys,

Just curious if anyone has any opinion on this site.

Cheers

sasjes

http://www.realestate.com.au/property-house-qld-moorooka-116170695

 

[D_One]

Funny you mentioned this property. I was actually doing my DD on this today...

 

[sasjes]

HI D one,

Nice coincidence. Have you come to any opinion/conclusion yet?

cheers

Sam

 

[D_One]

I wouldn't go for. Based on the numbers the vendors are expecting around $495k. They have already turned people down on $475k.

My very high level estimate.

Purchase Price - $495k
Stamps - $15k
Legals - $2k
Head works - $30k
Costs to build 3 x townhouses - $450k
Selling cost - $21k

Total Costs - 1.013mil
Townhouses value - $1.2mill

Profit- $187,000.

If you are a builder, you will make a good coin. I haven't even factored in the holding cost. The existing house on it can only rent for say $300-$320, making yield as it is very low.

 

[sasjes]

Hey mate,

Ill let you know how it ends up, we actually bought it.

Were not looking to sell so no selling fee. We have 4 month delayed settlement. Also I think your resale value is quite low for freehold townhouses.

We are in discussion with architects to decide to build 3 freehold townhouses or 4-6 units. Part of the property can already go to three levels. So were still looking at what will yield the best result.

We are happy with 17-20% return on TDC as it is a small project. Im not sure what level of return is acceptable to you. Ill let you know how it goes as it unfolds

cheers mate

Sam

 

[RPI]

Good luck.

The 4 month settlement is a great move. New City plan is about to drop so great timing also.

 

[D_One]

Hey mate,

Ill let you know how it ends up, we actually bought it.

Were not looking to sell so no selling fee. We have 4 month delayed settlement. Also I think your resale value is quite low for freehold townhouses.

We are in discussion with architects to decide to build 3 freehold townhouses or 4-6 units. Part of the property can already go to three levels. So were still looking at what will yield the best result.

We are happy with 17-20% return on TDC as it is a small project. Im not sure what level of return is acceptable to you. Ill let you know how it goes as it unfolds

cheers mate

Sam

Keep us updated. I'll like to know how you go. Perhaps start a new thread on it?

 

[LJW]

I'm a bit late but my thoughts anyway: There's a sewer pipe (and easement) which runs through the rear of the site, which isn't a big deal. The site slopes away from the street approx 2m so you will not be able to gravity feed roofwater/stormwater to Koala Road as a Lawful Point of Discharge. Council no longer allow rubble pits so you will either need to obtain permission from the owner of 41 Vendale Ave to construct a stormwater pipe through their site (preferrable, but often quite difficult to get) or you will need to look at on-site detention/pump out facility to Koala Road (which is not a particularly cheap option). I hope you have factored this cost into your due dilligence.

Cheers
Liam

 

[D_One]

Reviving this post, I noticed the property came back on the market about 1 or 2 months ago, I think it has been snapped up by someone since then though. Why did you pull out of it if you don't mind sharing?