Development Site For Sale

[Kristine..]

G'Day

http://domain.com.au/public/propertydetails.aspx?id=2004757979&archmsg=0

I have decided to release my 'medical centre' from it's moorings and let it sail away into a whole new life with someone else!

Occasionally, we have to cull the herd and as it's not likely that I would develop the site for at least the next couple of years then I may as well pass the opportunity along to someone who will.

Council has informed me that the site could be developed for three, two storey, three bedroom townhouses. Being a corner site, with a bit of tweaking about each townhouse could potentially have it's own street frontage.

There is a tenant / caretaker in the existing house on a month to month basis who would probably be happy to stay so there is opportunity for income while plans and permits for redevelopment are organised.

Quality townhouses in the area are fetching in the low to mid $300s. There is a new development of three townhouses a few doors along which is currently under construction. These are quality properties built in the Stockbroker style and the sharply pitched roofs allow for two storey and maximum use of the site.

Something similar could be designed for this site and would give good views of the Dandenongs, which can be seen from the kitchen of the existing house so this view could be enhanced from any new building.

This would be a relatively easy site to work with due to it's gentle elevation and excellent access from two sides. Three phase power is connected to the property, as is gas and sewerage and it is in a cable internet area.

For an investor, there are quality finance products available to about 90% of realisation value and much as I would love to do this one myself this is a 'realisation sale' - that is, I have to be realistic and realise my limitations at this time!

No, I don't expect any Forumites to be interested to buy, I'm just posting this for general information only.

Cheers

Kristine

 

[XBenX]

Not interested to buy but - are you willing to look at an option subject to DA?

 

[Kristine..]

Hi XBenX

Any offer 'subject to' would depend on the cirumstances of the intending purchaser and what they want from negotiations.

For example, if an experienced developer wanted a reasonable settlement that is quite different from a first timer who wants 'options' for free then will take months getting plans and permits organised.

From my experience 'in the business' the best (money, terms, etc) offers often happen quite quickly once a property is put on the market.

To take a property off the market while someone else rummages around somewhat defeats the purpose of selling in the first place. This property is extremely versatile, and an experienced developer who knows their way around the area and is familiar with planning processes would not likely want more than a day or so to perform reasonable due diligence.

So sure, when someone opens negotiations I would consider all sensible suggestions but I would seriously expect that not only will this property sell quickly at full asking price but that if an experienced developer buys it they could be in and out of there before Christmas.

Cheers

Kristine

 

[Les]

G'day Kristine,

Please keep us all up-to-date on this one, won't you. With your history of this place viewable on the forum, I, for one, allmost feel like I KNOW it.

Good luck with moving it on,

Regards,

 

[willair]

Kristine,
good luck with the sale,just one question if you can build
3 townhouses on this site,what in your estimate will
each seperate land content value be prior to building
if the competition is in the mid 350ks then is the price in line with the property.
good luck
willair..

 

[Kristine..]

Hello

Thanks, Les, yes my bloodgroup is B3+ and after that there's no secrets between friends!

Willair, not sure what you are actually asking me.

Townhouses which have separate street frontages are quite rare. Almost all developments have some shared common space, but if I was doing this project I would endeavour to design no common space.

It's a bit difficult to estimate $ / square metre in residential. Yes, I can calculate a rough guide based on dividing achieved sales by square metres, but that doesn't take aspect, location, frontage etc into account.

Corner blocks have a higher capital value than street blocks. This is because their share of the infrastructure is around 133%, not 100% of the street frontage.

When I was on Council, footpath schemes were guaranteed to have the ratepayers attend Council Committee meetings in droves. In courts, for example, we would only propose to construct footpaths on one side of the street, yet would apportion the cost of the scheme on a pro-rate basis across all beneficial tenements.

For corner properties, they would be charged 100% allocation of their frontage, but only 33% of the cost of their side boundary, with the remaining 64% put back into the overall allocation.

So when a surveyor is allocating 'Units of Benefit' and 'Units of Liability' when compiling a plan of subdivision, not all lots are created equal. The intrinsic value of the square metreage of the land is affected by frontage, distribution of private open space, proximity to other buildings, share of capital infrastructure, easements, etc

So, I would say that at a quick estimate, the 'front' lot will become a true corner block with frontage (vehicle, outlook) to the through road and outlook over the side street, the intermediate lot will have neighbours each side and access from and overlook the side street, and the rear lot will have side street access and outlook, plus a bit more private open space due to the 2.4 metre setback required from the rear boundary.

So, perhaps the lot could be allocated on a 120 point basis, with 45 parts to the front, 40 to the rear and 35 to the middle.

That being so, the $315,000 might be apportioned at $118,125 to the front, $105,000 to the rear, and $91,875 to the middle lot.

Which is probably about right.

Is that what you meant? Allocation of value reflected in price?

Cheers

Kristine

 

[willair]

Kristine,
Thanks for your time,yes thats what i was trying to understand,
this is just the way i look at things,say like you buy a D/A LMR
block in brisbane,maybe 4 units can be built on that block,plus
your start up ,then final walk in the door costs,then before you even
walk on that property you should know what your offer is before
you start, i think they way materials costs are starting to climb
the money may well in selling with the d/a in place.
good luck for 05
willair..