I will start by saying I am a young town planner from Melbourne, who has decided recently that I should utilise my knowledge of property and more specifically town planning and development to further my financial situation.
I purchased a property in Ballarat recently for $270,000 in a reasonable location on a block of 1700 square metres. The property has a dwelling on it now, which is four bedrooms however needs some work, but is rented for 230 per week to uni students. I know when I purchased the property I had got a steal, given un renovated dwellings on blocks of 500 square metres sell for 240-260 thousand in the area and agents from numerous real estate companies in the area, couldn’t believe I got it at that price (most believed it was worth 320-350 thousand). The block is located on the higher side of the road, and has a fall from of about 2-2.5 metres over the site. It is noted there is a steep embankment at the rear of the site which will be too difficult to build on. Basically im in a situation where I have a permit to subdivide the block into two, one which would be 900 square metres and include the existing dwelling, and the other next to this block into 800, with a frontage of about 17 metres along the road. Going on sales figures the block of 800 square metres would sell from 150 – 180 thousand.
Alternatively I could build two side by side townhouses (2 bedroom, 2 bathrooms and single garage). However there is minimal sales data to determine a selling price. There are not a whole lot of this type of development on the market, nor has there been many sold, particularly in that general area. There has been some townhouses sold in Ballarat, from around 300,000 plus.
I just wanted to see what people would do in my situation? Get development approval and put them on the market off the plan? Build them and then try and sell them? Sell the land component now? Or sell the land with plans for two townhouses? Any help would be greatly appreciated!!!
I purchased a property in Ballarat recently for $270,000 in a reasonable location on a block of 1700 square metres. The property has a dwelling on it now, which is four bedrooms however needs some work, but is rented for 230 per week to uni students. I know when I purchased the property I had got a steal, given un renovated dwellings on blocks of 500 square metres sell for 240-260 thousand in the area and agents from numerous real estate companies in the area, couldn’t believe I got it at that price (most believed it was worth 320-350 thousand). The block is located on the higher side of the road, and has a fall from of about 2-2.5 metres over the site. It is noted there is a steep embankment at the rear of the site which will be too difficult to build on. Basically im in a situation where I have a permit to subdivide the block into two, one which would be 900 square metres and include the existing dwelling, and the other next to this block into 800, with a frontage of about 17 metres along the road. Going on sales figures the block of 800 square metres would sell from 150 – 180 thousand.
Alternatively I could build two side by side townhouses (2 bedroom, 2 bathrooms and single garage). However there is minimal sales data to determine a selling price. There are not a whole lot of this type of development on the market, nor has there been many sold, particularly in that general area. There has been some townhouses sold in Ballarat, from around 300,000 plus.
I just wanted to see what people would do in my situation? Get development approval and put them on the market off the plan? Build them and then try and sell them? Sell the land component now? Or sell the land with plans for two townhouses? Any help would be greatly appreciated!!!