Hi,
Just wanted to get some feed back on feasibilities' and how do you calculate?
I am having difficulty to with our PPOR in A/C. Some background:
809m2 corner block very close to amenities with good "rural" outlook. Approx. 2 REA contacts per month asking if we are interested in selling?
Options:
1. Straight 1 to 2 subdivision which would be small lot, retain extg. house which is located to the front on 440m2 (to retain 7*5m deck) and build new 3/2/2 lowset on 360m2 with secondary street access. The question is seeing that the area is predominately mum + dad quarter acre blocks how do you value the new properties on smaller lots with zero historical comparisons?
My feaso:
Current value $450,000 (based on unsolicited offers)
Subdivision $80,000
New 3/2/2 low set $220,000
Total costs $750,000
Extg house new value $415,000 (Is this a reasonable adjustment for smaller block?)
New house $465,000
Total value $880,000
On paper not a world beating return (17% less associated selling costs and taxes) but aim is to retain as IP and let compounding work it's magic.
2. Wait for new town plan with potential for rezoning to allow 3 separate dwellings. Again how do you value for feasibility purposes when there is not much to compare with.
Constructive criticism encouraged.
Just wanted to get some feed back on feasibilities' and how do you calculate?
I am having difficulty to with our PPOR in A/C. Some background:
809m2 corner block very close to amenities with good "rural" outlook. Approx. 2 REA contacts per month asking if we are interested in selling?
Options:
1. Straight 1 to 2 subdivision which would be small lot, retain extg. house which is located to the front on 440m2 (to retain 7*5m deck) and build new 3/2/2 lowset on 360m2 with secondary street access. The question is seeing that the area is predominately mum + dad quarter acre blocks how do you value the new properties on smaller lots with zero historical comparisons?
My feaso:
Current value $450,000 (based on unsolicited offers)
Subdivision $80,000
New 3/2/2 low set $220,000
Total costs $750,000
Extg house new value $415,000 (Is this a reasonable adjustment for smaller block?)
New house $465,000
Total value $880,000
On paper not a world beating return (17% less associated selling costs and taxes) but aim is to retain as IP and let compounding work it's magic.
2. Wait for new town plan with potential for rezoning to allow 3 separate dwellings. Again how do you value for feasibility purposes when there is not much to compare with.
Constructive criticism encouraged.
