Best strategy for a decent block in ADL

[wll6568]

I have a decent block in a prime eastern suburb of Adelaide about 15 mins drive to the cbd, house is a 4 bedroom, 2 bathroom house sitting on a 850sqm block with about 18m wide frontage. Location wise is good with walking distance to the shopping district and bus stop. Being holding for fifth years now, value has gone up about 15% (not a lot i know... but that's Adl).

Just wondering what would be the best strategy if you are in my position:

1. Keep holding and rent it out as long as i can and don't bother selling or doing any development with it.

2. Wait a few more years and subdivide it into 2 narrow courtyard style houses? Or even 3 townhouse block?

3. Wait a few more years and renovate to luxury standard and sell?

Opinions appreciated! XD

 

[LoneWolf]

Subdivide and develop, that's what I would do without a doubt

But this would largely depend on your ability to manage risk, and obviously capital requirements

Otherwise, Good luck!

 

[Mitch1]

I guess it comes down to your own strategy!

do you want to hold long term on the blocks best outcome(probs 3 townhouses but do the numbers)

do you have the funds to get it to Demo and subdivision only then sell

do you have the funds to demo/subdivide/build and then sell 1 or 2 keep remaining and use equity to purchase again (or not)

are you looking to release funds now for other investments

basically, you need to look at your personal end goal, what you are trying to achieve, what you can finance/borrow and then see how you can apply that to what you currently hold.

good luck, its nice to have that opportunity to work with

 

[eKwatee]

I would definitely be keeping an eye out on any proposed development plan changes to your local governments plan.

As an example, many owners within the Campbelltown Council were caught out on a recent development plan change, that prevented subdivision in certain policy areas to now require a minimum 500sqm per allotment, thus now needing 1000 sqm for subdivision.

Then on the other hand, other allotments in Policy areas within 200m from the corridor roads leading into the city, can subdivide as low as 200 sqm.

So waiting could be an advantage or a disadvantage, depending if your local council is looking to make similar changes, and also where within the council area your property is located.