Feedback on Oak Park, VIC property

Hi,

I am new to property investment and would like some feedback on the following property:

House: Weatherboard, 3 bedroom, 1 bathroom, 1 car carport
Condition: Average
Suburb: Oak Park, VIC, 3046
Block: 700m2
Rented At: $250 pw
Asking Price: $480,000, comes with approved plans and permits to build two 2 storey townhouses and a single unit.
Other: Backs onto railway line

Just wondering if anyone can provide some feedback on this property. Approx. figures on what it would cost to knock it down and build the 2 townhouses and unit would be great?

Thanks
 
Cant help you with the figures but i am about to buy in the Oak Park/Pascoe Vale area- i love the area and think it has alot going for it
 
$250 pw for 480K property is a shocking bad yield, nice to have 700m2; especially for a suburb only 12k from cbd

backing onto railway line is not good.

you would be lucky to get 2 townhouses and a unit on 700

i guess it costs 15-20k to knock and probably 150-200 to build the townhouses

say 1mill all up. you would need to sell townhouses for 500K each,

maybe break even, not sure if there is much in it for the effort.

disclaimer, hold ip in 3046
 
I am curious as to why no developer has snapped this up as yet.

A 3 bedroom, 1 bathroom 2 carspace property went for $520K in the area recently (611m2).

Say the land is subdivided as follows:

Townhouse-1: 225m2
Townhouse-2: 225m2
Unit-1: 250m2

If you can get 3 bedrooms in each property then are these figures reasonable:

Cost To Buy: $500K
Cost To Demolish: $20K
Cost To Build Unit-1: $200K
Cost To Build Townhouse-1: $200K
Cost To Build Townhouse-2: $200K

Total Cost: $1.1M

Sell Unit-1: $500K
Sell Townhouse-1: $500K
Sell Townhouse-2: $500K

Profit @ $500K pp: $400K

Sell Unit-1: $400K
Sell Townhouse-1: $400K
Sell Townhouse-2: $400K

Profit @ $400K pp: $100K
 
There are many other costs you haven't factored. Sub costs, council contributions, agents fees, interest etc etc
 
Fair enough - thanks.

As a newbie this venture is out of my depth but interesting to find out what's involved.
 
The area is really nice. We bought a brand new (off the plan) 3 bedroom unit in Oakpark in Nov 2007. We paid $360K. Location is just 200 meters from Oakpark station and on high side of the road etc.
Bank has valued the property for 450K now.
MDV,
 
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