Depends on condition and time on market, but maybe 10% ish. Try to avoid semis though, unless you're getting both sides
Elizabeth Downs -Hot lead for low cost Mortgagee Sale
- Thread starter Stangman
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Depends on condition and time on market, but maybe 10% ish. Try to avoid semis though, unless you're getting both sides
It really depends on the asking price.
If they were priced competitively, its not unheard of for them to go above the asking price. That pair linked further up on Halsey street I wouldnt be surprised if it went above the asking price if it came off the affordable homes program before it sold.
What is everyone's thoughts on blakeveiw?
I have the opportunity to buy a house in bad condition agent says it needs 40k spent on it, so could be more.
It is about 450sqm block
3 bed 2 bath
Built in 1985
What do they sell for in blakeveiw?
Have not seen in side yet but she said it is bad.
Street is nice and clean. But is worst house in street from outside..
Thinking to buy cheaply, renovate and sell for quick profit...
Thoughts???
I have the opportunity to buy a house in bad condition agent says it needs 40k spent on it, so could be more.
It is about 450sqm block
3 bed 2 bath
Built in 1985
What do they sell for in blakeveiw?
Have not seen in side yet but she said it is bad.
Street is nice and clean. But is worst house in street from outside..
Thinking to buy cheaply, renovate and sell for quick profit...
Thoughts???
Haven't ever had a client or know of anyone who has purchased established. All clients/friends/whatever I know have only built their own property. Unless you're selling at a good discount below cost of construction don't expect to get similar price. I believe those who're looking for established will come closer to CBD. But that's just my opinion.
I'm not going to pretend that I know anything about Blackeview, but if you want to know the prices, look up REA.Com or Domain. If you are planning on buying cheap, doing a reno & sell, you need even more information. Like.....Hmm.....knowing the costs to do the renovation, what level finish is expected in the area (no point in overcapitalising), sell prices of reno'd properties etc.
Also, Agents don't usually do reno's, so how reliable is your information? $40k is a LOT of money for a reno, especially if you've got the skills to do it yourself. Most places will need a good paint, floor coverings, kitchen & bath. There are plenty of people who could do that and have lots of change left, while others would need much, much more. What skills do you bring to keep the costs down?
What do you guys think would be a better investment-
A free standing house in the less desirabe suburbs of Elizabeth (Elizabeth North/Elizabeth Downs/Davoren Park)
Or
A semi in a good condition in the more desirable parts of Elizabeth (Elizabeth Vale/Elizabeth East/Elizabeth South)
I'm just asking because I've noticed there is only a 10-20k difference in price between attractive semis and freestanding properties in the above areas in some cases.
A free standing house in the less desirabe suburbs of Elizabeth (Elizabeth North/Elizabeth Downs/Davoren Park)
Or
A semi in a good condition in the more desirable parts of Elizabeth (Elizabeth Vale/Elizabeth East/Elizabeth South)
I'm just asking because I've noticed there is only a 10-20k difference in price between attractive semis and freestanding properties in the above areas in some cases.
Not really that fond of the area, it's further away than cheaper areas for not that much benefit. In saying that, there's not really that many places to build so it's a decent place to do so, but if you wanted an established place you'd look a bit closer in. Think of that when it comes to resale.
Now in terms of your deal, depends what you're getting it at. If there really is 40K worth of work on it and you set a realistic end value / sale value, are you buying it at a big enough discount to allow a profit margin?
That's what I was thinking but short term the yield was making semis seem appealing. I guess the sacrifice comes down to capital growth because you can still pick up semi's in Edwardstown for <300k even though houses in Edwardstown are selling for 450k.
I doubt the yield is that much different between the 2.
I also doubt $20 difference in positive cashflow into your pocket is going to make up the difference in thousands of CG.
The future capital growth (from area maturity, reno, development or a mix of all 3) is what makes you wealthy over time.
Thanks for the advice D.T I'll stick to freestanding places
Nothing stopping semis achieving the same growth. Obviously especially if you buy both but even single semis can be renovated, grow over time (mature) and i have seen some being subdivided to the back (retaining current block). Yes not many people would like to live in a hammerhead right now but when the land prices go up, it would be worth doing (like any subdivision).
Keep your options open, look at the overall picture as semis can be just as good.
Disclaimer: most of my ips are freestanding (a semi as well) but I have seen good cashflow and CG with my friend's semis with the reasons outlined above.
Thinking of subdividing my corner block at Elizabeth North and building a 4x2.
House only cost me 162k including SD and repairs so far
Have been told by the time a sub divide and build it will cost me an extra 200k.
Is this a good guide?
Sub division is roughly 30k+- and build a 4 bedroom is 170+-?
House only cost me 162k including SD and repairs so far
Have been told by the time a sub divide and build it will cost me an extra 200k.
Is this a good guide?
Sub division is roughly 30k+- and build a 4 bedroom is 170+-?
Valuation won't stack up if you're going to have 200k alone in hard costs. Not the time to do this IMHO, as there is minimal profit margin with land prices suppressed from government releases.
Corner block, have you looked to see where the sewer runs? My SA Water bill is $25k eat's into the fat for me, but could be a deal killer for you.
What's your end result from this? Are you going to be selling? If keeping what will they rent for? What are all the costs? Does the $200k get you fully established (fencing, landscaping, driveway, perm paths, a/c, window treatment, flooring...)
What's your end result from this? Are you going to be selling? If keeping what will they rent for? What are all the costs? Does the $200k get you fully established (fencing, landscaping, driveway, perm paths, a/c, window treatment, flooring...)
I was thinking of building a 4 bedroom and renting it for $330 per week. which I am confident I will achieve as I rent and old house with bedroom for $320 per week. and had a lot of people wanting to rent it.
yes I can retain existing dwelling.
It will be close to 8% return on whole thing if the new house build + sub division costs 200k
thinking of holding both new and old as a cash flow positive properties
sewer runs along the back so it is ideal. I asked a surveyors opinion before buying, new allotment will have 12.5m frontage and be 375sqm which should be wide enough for double garage.
house cost me 163 with stamp duty and repairs
subdivision will cost 25k
make a new driveway + cover for existing dwelling 5k
not sure what the cheapest 4 bed will cost but hoping 170 turn key
so total 363k and rent will be $330 for new and get $270 for old
31,200 rent / 363k
8.5% return approx.
have spoke to a couple of agents about the value of the existing dwelling once its been split up. both think it would still be worth 150k. it will be a 3 bedroom house in fair condition on 550sqm.
using this as a guide
http://www.realestate.com.au/property-house-sa-elizabeth+south-119045143
even though I am in Elizabeth north cant be too much different.
when will the "land release" stop ?
there is unlimited blocks for sale atm.
also I am still looking for old properties that have sub division potential.
