I own a property in an old suburb of Perth, located 6km from the city centre. It is walking distance to Curtin University and the Technology Park. A new cafe strip is earmarked just 2 blocks away on the council's precinct plan. The area has just started to take off and developers have been approaching me about selling my property to allow them to do exactly what I propose here. Prices have jumped 21% in 12 months (much of that in the last 4 months), but still lag well behind adjacent suburbs.
Here's the go. Perth land zoning works on number of dwellings per hectare basis. The neighbourhood is zoned R20, so 20 dwellings per hectare or 2 per 1000 sq.m. My lot and the one next door are both over 800 sq.m., so individually are single dwelling sites. The combined site would be 1650 sq.m and thus a triplex development site. My objective is to build three ~200 sq.m 4 bed x 2 bath double brick homes (standard for Perth), each on its own 550 sq.m lot. It is fairly easy for remote investors (I live on the east coast) because triplex type development has become very common and several building companies in Perth now have specialised multiplex development divisions. They take care of the whole process including amalgamation and re-subdivision of the lots. The existing homes are old fibro state housing places built in the 50's.
I don't have enough equity to purchase the adjoining property and also fund the triplex development. I need someone to purchase the property next door and then become a 50% (or 33%) partner in the development. The current owners are keen to sell and want $250,000, but might be talked down a bit with no real estate sales commission. Development costs will be about $330-350k in total (to a ready to rent level). Based on today's sale prices, the 3 new houses will be worth $340-360k each.
If retained, they would rent at $280 pw each. I would actually prefer to hold on to them as there is unlimited capital upside in the area.
Please contact me if this is of interest.
Here's the go. Perth land zoning works on number of dwellings per hectare basis. The neighbourhood is zoned R20, so 20 dwellings per hectare or 2 per 1000 sq.m. My lot and the one next door are both over 800 sq.m., so individually are single dwelling sites. The combined site would be 1650 sq.m and thus a triplex development site. My objective is to build three ~200 sq.m 4 bed x 2 bath double brick homes (standard for Perth), each on its own 550 sq.m lot. It is fairly easy for remote investors (I live on the east coast) because triplex type development has become very common and several building companies in Perth now have specialised multiplex development divisions. They take care of the whole process including amalgamation and re-subdivision of the lots. The existing homes are old fibro state housing places built in the 50's.
I don't have enough equity to purchase the adjoining property and also fund the triplex development. I need someone to purchase the property next door and then become a 50% (or 33%) partner in the development. The current owners are keen to sell and want $250,000, but might be talked down a bit with no real estate sales commission. Development costs will be about $330-350k in total (to a ready to rent level). Based on today's sale prices, the 3 new houses will be worth $340-360k each.
If retained, they would rent at $280 pw each. I would actually prefer to hold on to them as there is unlimited capital upside in the area.
Please contact me if this is of interest.
