Heidelberg Heights

[perthguy]

I have a potential development site in Heidelberg Heights with an old dump I picked up years ago. I occasionally take a peek to see how the area is going. My plan is to knock down and build two townhouses to hold and rent out. Rents seem quite low right now so it doesn't seem worth it. Anyway, a house on a similar sized block sold last year in the 400's (listed at $430,000, sale price unknown):

721m2 http://www.realestate.com.au/property-house-vic-heidelberg heights-114366371

So I thought mine was probably in the 400's, until I saw this nearby:

640m2 http://www.realestate.com.au/property-house-vic-heidelberg+heights-115551115

Sold for $593,000 in Dec 13. Now, this property is a 4x2 as opposed to a 2x1 but doesn't seem too flash. Could the extra bedrooms and bathroom account for that much difference in price? (extra rent potential?). It just seems like a big jump to me.

 

[natedog]

Yep, big jump but not outside the realms of possibility.....

 

[oc1]

There's a big difference between the location of both properties even though its 3 or so blocks away. Also the market in that area picked up steam in the latter part of the year.

If your block is around the same size as the first one you have listed then you are under-developing your block with only 2. You would get 3-4 on it. More rent.

 

[perthguy]

There's a big difference between the location of both properties even though its 3 or so blocks away. Also the market in that area picked up steam in the latter part of the year.

If your block is around the same size as the first one you have listed then you are under-developing your block with only 2. You would get 3-4 on it. More rent.

Thanks. Mine is just over 700m2 I think. I will have to look up the title. I will talk to my builder about 3.

 

[MTR]

Thanks. Mine is just over 700m2 I think. I will have to look up the title. I will talk to my builder about 3.

HI Perthguy
I am no expert in this area, however, I am building 4 on my 650 sqm block, 3 will be double storey.

I think the general rule is the more you can fit on the block the better chance of a profit, of course they still need to be a product which people will buy.

MTR

 

[perthguy]

HI Perthguy
I am no expert in this area, however, I am building 4 on my 650 sqm block, 3 will be double storey.

I think the general rule is the more you can fit on the block the better chance of a profit, of course they still need to be a product which people will buy.

MTR

In WA or Vic? The Vic system seems to be a lot different to ours. I still need to research what rents and end value for different scenarios. And also talk to my builder about costs and how many will fit on the block.

I know they develop some innovative products in my area. This is near me:

http://www.realestate.com.au/property-unit-vic-heidelberg+heights-405189589

Maybe I could hedge my bets and do a 2x1, a 3x2 and a 4x2 on the same block

 

[MTR]

In WA or Vic? The Vic system seems to be a lot different to ours. I still need to research what rents and end value for different scenarios. And also talk to my builder about costs and how many will fit on the block.

I know they develop some innovative products in my area. This is near me:

http://www.realestate.com.au/property-unit-vic-heidelberg+heights-405189589

Maybe I could hedge my bets and do a 2x1, a 3x2 and a 4x2 on the same block

That is ugly

Building in Melb, am looking for more sites so wont mention area at the moment.

 

[perthguy]

That is ugly

Building in Melb, am looking for more sites so wont mention area at the moment.

Ugly, yes. But interesting too.

I don't think I would do 4 in this area. Maybe closer to the City, a train station or the Hospital?

I still need to get my head around what rents well and what hangs around because I am building to hold and rent. I would rather build what is in high demand but short supply for rent, rather than short demand high supply.

 

[MTR]

Ugly, yes. But interesting too.

I don't think I would do 4 in this area. Maybe closer to the City, a train station or the Hospital?

I still need to get my head around what rents well and what hangs around because I am building to hold and rent. I would rather build what is in high demand but short supply for rent, rather than short demand high supply.

Rents are lower in Melb in general.

I like to buy very close to rail, this is a huge one in Melb.

The builds are totally different to what we do and expect in Perth. I have left it to the expert who has been doing it for years, if "the wheel aint broken, don't fix it", as they say.

Also, want to make sure that you consider objections etc, and how this will impact with neighbouring properties as you do not want to be going to VCAT, I think waiting list is over 6 months? cost an additional I think $6000.

When I put my DA together 5 years ago I just employed the best architect in the area that knew how to get it over the line best money I spent.

Cheers
MTR

 

[perthguy]

Rents are lower in Melb in general.

I like to buy very close to rail, this is a huge one in Melb.

The builds are totally different to what we do and expect in Perth. I have left it to the expert who has been doing it for years, if "the wheel aint broken, don't fix it", as they say.

Also, want to make sure that you consider objections etc, and how this will impact with neighbouring properties as you do not want to be going to VCAT, I think waiting list is over 6 months? cost an additional I think $6000.

When I put my DA together 5 years ago I just employed the best architect in the area that knew how to get it over the line best money I spent.

Cheers
MTR

Ok. Thanks! Lots to talk to my builder about.