Developing At The Anchorage Estate, Rockingham

[Kennethkohsg]

I was just curious, as per my previous post, what you consider a small house. Not to question your judgment, just because I have personally been struggling with the appropriate size house to build at times.

Recently in the Anchorage I have signed up to build houses smaller than I normally would, just based on the smaller land size I was building smaller houses. But now that land prices have jumped 40k-50k, I am sorta 2nd guessing my decision, and wonder if I should have built bigger.

Thanks

Mark

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Dear Mark,

1. What are your own thinking on this?

2. From my own experience looking at the immediate cpaital growth upon the house completion as well as the subsequent capital growth for my 2 houses at 17, Broughton Way and 26, Properjohn Drive, a 200-220 m2 (living) 4 bedroom house will command a better immediate returns as compared to a 170-180(Living) m2 4-bedroom house, in the immediate short term context of less than 5 years.

3. I have similarly observed that those bigger houses (230-250 m2) are also commanding higher resale values in today's market conditions.

4. However, I still do not know for sure how the capital growth and returns will eventually work out in the medium and long term basis;- though I guess it would be lower in the long term context, given the higher accumulated depreciation costs enjoyed.

5. Based on what I have observed of my own assoicate, Mr Alan Wong, the optmial size house seems to be in the range of 205-225 m2(lving) 4 bedrooms house for the Anchorage Estate.

6. I hope these feedback is of help to your decision-making process.

7. Thank you.

regards,
Kenneth KOH

 

[ibeginner]

Hi, All,

Thanks we have some common thoughts on this development. I do not deny for the early opportunity you got into it.

Cumwn -- Answer you question. For a 3x2, you got to be about 130-150m2 livinng. For a 4x2, 150-200m2 of living. Do not buit 2x1 or 3x1, it will not get more money for you I believe.

2 months ago, I visited South Florida (mandurah) and would like to purchase a beach block. I was negotating a long settlement because the land was released for 3 months and only HALF gone. I thought I could get a 3 month settlement. Guess what the answer was NO.

A strange thing happened in 2 weeks after I visited. Perry (Agent) put up $10k for each of the block.

 

[Kennethkohsg]

Hi, All,

2 months ago, I visited South Florida (mandurah) and would like to purchase a beach block. I was negotating a long settlement because the land was released for 3 months and only HALF gone. I thought I could get a 3 month settlement. Guess what the answer was NO.

A strange thing happened in 2 weeks after I visited. Perry (Agent) put up $10k for each of the block.

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Dear Ibeginner,

1. What's exactly are you trying to say here?

2. Please clarify as I seem not to able to follow your line of thinking as posted a/m. I'm sorry about that.

3. Thank you.

regards,
Kenneth KOH

 

[cumown]

Thanks for in input on sizes, I have kinds settled in with the idea 200+ is best. But some I have just started in anchorage are smaller, 175-191 SqM 4x2. Should be ok, but would built bigger if I had it to do over.

Also iBeginner, with Flordia, Perry not only sells the land but Perry owns it too.. they hold out for huge prices, when the rest of the estates are selling off the plan these guys are selling at or near titles and hold out for big numbers. I don't believe the land in their estates represents good value. There is some land in Melros, just south of the Florida Beach stuff, blocks from 110k, real nice ones for 120k. Super good value by my estimation (beach side too).

Cumown.

 

[ibeginner]

Hi, Kenneth

I was referring how some GREEDY developers manipulated the price. The purchaser may not get the real value.

Cumown, I agree with you on Florida and the other development (I went there as well).

Still hunting for good value ones.

iBeginner

 

[Kennethkohsg]

Dear All,

1. I write to inform you that the legal completion for my house sale at Lot 1664, 15 FitizGibbon Road for a sale price of A$370,000, was successfully carried out yesterday afternoon.

2. This house sale can now become part of the official sale statistics to be quoted.

3. For your kind update,please.

4. Thank you.

regards,
Kenneth KOH

 

[Kennethkohsg]

Kenneth - the RP Data sales history clearly says $175k. either RP Data or your valuer have got it wrong. here's the cut and paste for # 7 Yellowtail Rd

L1923/P040510 19/08/05 175,000

and for lot 1585

L1585/P041354 10/08/05 180,000

the one on Bismark would be good buying at that price as, looking at the map, it seems to have an outlook across a couple of public open spaces.

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Dear Ausprop and All,

1. I will greatly appreciate if Ausprop or other members concerned can kindly and urgently fax-copy me in Singapore, a copy of the a/m RP Data sale data at FAX:65-6565-8662 (or alternatively, to my finance broker, Ms Janine Carpenter at IMFS in Perth at Fax 08-9228-1555 and at 08-93411236), as we are trying to get a higher valuation price on the similar pieces of vacant land purchases for our new construction loans from Westpac Bank.

2. I have PM Ausprop. Hopefully, beside Ausprop, other members with the relevant data, can kindly assist and provide me with a hardcopy of the relevant sale data, on an urgent basis.

3. Thank you very much.

regards,
Kenneth KOH

 

[Kennethkohsg]

Dear Ausprop,

1. Thanks for your RP Data.

2, My Singapore investor and I much appreciate your data input as his lending bank, Westpac, has now agreed to value his vacant land at Lot 1908 for A$165,000 for the approved construction loan, which he has last purchased/settled for A$125,000 during the Stage 15 Land Release Stage.

3. Consequently, he is able to get some $178,930 loan approved for his house construction which is estimated to cost about $188,000.

4. Thank you.

Cheers,
Kenneth KOH

 

[Kennethkohsg]

Dear All,

1. I was informed that the lake-front 4x2 bedrooms (206?m2 living) house at 16 Olympic Place was being valued for A$425,000 last week.

2. Another 4 x 2 lake-front house in the same location, was also reportedly sold off for A$395,000 by Ray-White Rockingham.

3. Do members have independant and other confirmed reports, to help verify such sale/valuation data.

4. I will greatly appreciate your inputs.

5. Thank you.

regards,
Kenneth KOH

 

[Ausprop]

no problems Kenneth, though I disagree with the valuation as I think it is too low. anyway.

the finished sale prices you mention seem quite reasonable for buyers too. I can't see those prices lasting much longer.

 

[Kennethkohsg]

no problems Kenneth, though I disagree with the valuation as I think it is too low. anyway.

the finished sale prices you mention seem quite reasonable for buyers too. I can't see those prices lasting much longer.

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Dear Ausprop,

1. I agree with you that the Westpac Bank's valuation of A$165,000 for Lot 1908, Santana Street, Shoalwater WA 6169, was on the low side. However, it was good enough for the Singapore investor as his building contract was almost 95% financed by the Bank.

2. Care to share with us the selling price achieved for 2 of your 3 properties in the Anchorage Estate? Have they reached legal settlement status yet?

3. Looking forward to your sharing and contributions for mutual learning purposes, please.

4. Thank you.

Cheers,
Kenneth KOH

 

[Ausprop]

Hi Kenneth - FYI I settled on lot 1898 yesterday for $180,000 which pretty much sets the benchmark in that area for blocks.

do you know where are these townhouses being marketed? I am yet to see any promotional material on them

 

[Kennethkohsg]

Hi Kenneth - FYI I settled on lot 1898 yesterday for $180,000 which pretty much sets the benchmark in that area for blocks.

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Dear Ausprop,

1. Thank you for sharing. I'm sure some members are going to benefit from your input.

2. I'm trying to get another overseas investor to get his vacant land and house construction value in the Anchorage Estate re-valued again, so that he can free up his own investment capital in the present investment while his house is still being constructed. In this way, he can free up his cash capital to further re-invest without having to wait for the house construction to complete.

3. For your kind update, please.

4. Thank you.

regards,
Kenneth KOH

 

[Kennethkohsg]

Developing At The Anchorage Estate,

do you know where are these townhouses being marketed? I am yet to see any promotional material on them

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Dear Ausprop,

1. I do not think that these townhouses have been officially promoted in WA yet, at this point in time;-and perhaps not likely at all as they would be considered to be quite expensive in the Perth property market context.

2. The townhouses sale packages was informally "pre-luanched" during the last Australand's Property Luanch Exhibition in Singapore on 21st-23rd July 2005. I do recall, having personally seen some of its promotional materials then.

3. I further suspect that these Stage 18 Land and Townhouses packages for the Anchorage Estate were also being "quietly" marketed in Sydney to its close associates and preferred clientele groups, even though there have been no official luanch reported to date.

4. For your kind update, please.

5. Thank you.

regards,
Kenneth KOH

 

[Kennethkohsg]

Hi Kenneth - FYI I settled on lot 1898 yesterday for $180,000 which pretty much sets the benchmark in that area for blocks.

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Dear Ausprop,

1. Thanks for your kind confirmation.

2. Do you know what is the highest re-sale price achieved for lake-front vacant land lots in the Anchorage Estate to date? If so, will you kindly also provide us with the sale data details, please.

3. Thank you in advance for your kind sharing, please.

4. Thank you.


regards,
Kenneth KOH

 

[<KS>]

I wonder what my current project would be worth?

It is a 4x2 209m2 (living) opposite the park and diagonal from the lake on Rhapsody Close.

I have to say Dale Alcock have overall done a brilliant job. The construction was not actually started till May and I have handover on the 15th of December. Thats only 6 MONTHS construction time - I am impressed.

The trades have been very professional and I have only picked a small handfull of faults so far. I think that I have learned a good lesson: sometimes its best to pay a little more. Having said that the price I am completing this project for is extremely low and I am happy that the project will total about $147,00 in instant equity. (based on my own valuation that the property will be worth around $410,000 upon completion due to quality of finish, size, location and top quality landscaping and extras).

Thoughts?

<KS>

P.S - Congratz to everyone else making the most of this area.

 

[Pete]

well done. Congrats to KS

KS,

(As I've written previously) My thoughts are you're on a winning approach - congratulations. A great result. What about repeating / growing that success?

Regards,

 

[Kennethkohsg]

Dear KS,

1. How much does your lending bank value your 2 houses at Anchorage Estate presently?

2. Care to share with us?

3. Thank you.

Cheers,
Kenneth KOH
+++++++++++++++++++++++++++++++++++++++++++++++++++++

I wonder what my current project would be worth?

It is a 4x2 209m2 (living) opposite the park and diagonal from the lake on Rhapsody Close.

I have to say Dale Alcock have overall done a brilliant job. The construction was not actually started till May and I have handover on the 15th of December. Thats only 6 MONTHS construction time - I am impressed.

The trades have been very professional and I have only picked a small handfull of faults so far. I think that I have learned a good lesson: sometimes its best to pay a little more. Having said that the price I am completing this project for is extremely low and I am happy that the project will total about $147,00 in instant equity. (based on my own valuation that the property will be worth around $410,000 upon completion due to quality of finish, size, location and top quality landscaping and extras).

Thoughts?

<KS>

P.S - Congratz to everyone else making the most of this area.

 

[blueport]

Anchorage Posts

Hello All,
I am new to this forum & new to actually investing in property, (besides just looking) having my first property settling this week.
I would like to say that all these posts have blown me away with the content & the activity of regular posters that take the time to put their ideas down,question & analyse everything.
Having read all these posts, I have read a far bit on what is happening south of Perth & have been interested for some time in having a go in this area but I did not realise that there was that much profit available in buying the land & commissioning a builder myself, versus buying a house & land package. I knew the yields were low & was concerned about being heavily -ve geared but if I can hang in there & sell on completion, or better yet, hold for 12mths or so, Im prepared to give it a go.
The way I see it, if I can make 10k on the deal, its 10k I didnt have before but I guess its not much if it takes 2 yrs to build it!
I wish I lived closer but Im just down the road from Sparky 23 in NSW so I will start looking on the net I guess but it seems it may be hard to score a block. We'll see.
You guys are going great guns by the sounds of things.
Well done & thanks for all the great posts & info.

 

[<KS>]

@Pete - Thanks for the encouragement. I fully intend to repeat the process and I am in the process on scouting out the next venture location. I may even deal with Dale Alcock again, but not 100% sure as the off-the-plan house I just built has increased in price by $26,000 in 10 months! I would be keen to hear your thoughts on other good places to build ATM mate

I actually went to look at another block for sale in the Anchorage but it was just under 500m2 and was an awkward shaped corner block with not so impressive houses built around it which made me decide against it. Not worth the 150k since the house on it would not have been large and the area unattractive compared to the rest of the Anchorage.

@Kenneth - My house on Rhapsody Approach will be valued in about 3 weeks upon settlement of final payment, I will definately keep everyone updated on the result. I actually gifted the other block of land I had to my sister as a wedding present early this year (I just paid the initial deposit). They are building a beautiful first home and I can proudly say it was because of me!! Nice fuzzy feeling for sure!! They are going to let me know its valuation in about 8 weeks when Ventura completes their home. I am keen to see the comparison between the 2 finished products.

@Blueport - All I can say is: Get Stuck In - dont suffer from the procrastination disease as it costs you LOTS. Do your due diligence and get your hands dirty. As long as your convinced you cant LOSE money on any given venture than GO FOR IT, worst you can do is learn from your experience.

<KS>