Future Duplex or Triplex Potential Perth

Hi,

I am a first time property developer. Bought a Cockburn apartment for first investment which was ok yield & good for tax but in hind site too expensive and I could have done better. This time I want to make the 'best' & most 'educated' decision on capital growth & development potential. I had been looking at Girrawheen for potential development blocks R40 (2015) however the prices have jumped dramatically in last 4 months. Have I missed it? 750 blocks for 450k. Potentially R40 can hv 3 units which are approximately cost 200k each (according to developers I spoke to). If units are selling for 400k in Balga at mo (none in Girrawheen) surely, after DA, demolition, building, capital gains tax etc I wouldn't stand to make a cent if I went that route? Where can you pick up something around 400k with development potential that will be profitable!! Or is it best to simply buy & hold and let the land do the work for you in this market (I wanted to speed up the process)? I have 70k deposit and can borrow to 500k (wanted to stick to 400k) - I just dont know where to buy and whether to plan big for a (triplex) in 2 yrs or baby steps and maybe do duplex in 2 years. Or perhaps just buy a big block to put a 2nd house on later? Any mentors out there?
 
Try a retain and build for long term hold on both?

Or else you just have to keep looking for something to come along. Theres alot atm that doesnt stack up duplex triplex or multis around but theres a few that still stack up coming onto the market just have to look hard :D

Or if it fits into your strategy landbanking is an option. But 12-24 months ago you would of grabbed some good deals with alot less competition.

Cheers
 
I think the market in Girrawheen has overshot itself. The high prices for future development blocks don't justify themselves in comparison to balga which already has the R40 zoning.
 
Look at any area that is earmarked for rezoning. Start off with the councils, city of Wanneroo etc, there are plenty of areas that rarely get a mention on the forum that have lots of potential for further growth. Find out from council the precincts that are earmarked for rezoning.


Balga is now getting close to $500K for a deve site and there is talk of changing zoning as they believe too much infill. I spoke to Council regarding this, about a 2 year timeframe, its on the agenda, so if land banking don't buy in Balga.

Alternatively, look at areas close to the city 12 km which are cheap compared to surrounding areas such as Mirrabooka, Marangaroo, Alexander Heights, Beechboro.. some of these areas also include deve potential.

Identify areas where there is little stock and lots of demand, harder to secure properties however you will achieve growth now.

MTR:)
 
Balga is now getting close to $500K for a deve site and there is talk of changing zoning as they believe too much infill. I spoke to Council regarding this, about a 2 year timeframe, its on the agenda, so if land banking don't buy in Balga.
MTR:)

When did you talk to council about this and how solid is the information?

I had a heart attack moment a few weeks ago about the Local Area Plan for nollmarra, Westminster and balga. I spoke to the city of Stirling and they specifically stated that the rezoning component of the local area plan would not go ahead. Is there a heightened need to be concerned?
 
When did you talk to council about this and how solid is the information?

I had a heart attack moment a few weeks ago about the Local Area Plan for nollmarra, Westminster and balga. I spoke to the city of Stirling and they specifically stated that the rezoning component of the local area plan would not go ahead. Is there a heightened need to be concerned?

About 6 months ago as Balga was on the agenda. Only Balga not other areas you mentioned.... though my builder believes this will not go ahead dependent on a certain Mayor being elected, can not recall who??? Italian name, you would know am sure
 
Thanks. As a precaution I am putting all our development sites in the area through DA approval. Don't want to be stung if the rezoning goes through all of a sudden.
 
Hi Alex
mrb will progress with putting through DA because there is talk that there is too much infill in Balga and rezoning may be changed, in other words there may be a possibility that higher density zoning will revert back to only single dwellings?? Still not clear. I think DA is good for 2 years and then can extend this if required.

MTR
 
Duplex still stacks up in these areas if you can retain the original front property IMO.

Purchase for $420k, build at rear for $180-$200k.
 
Hi Alex
mrb will progress with putting through DA because there is talk that there is too much infill in Balga and rezoning may be changed, in other words there may be a possibility that higher density zoning will revert back to only single dwellings?? Still not clear. I think DA is good for 2 years and then can extend this if required.

MTR

Oh I see! Thanks for the explanation.
 
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