so would i. i think people are going to be in for a bit of a rude shock if theyre using soem of the high prices obtained for multis in belmont last year as an indication of what they get in the next year or so.
Help Tula spend $700-$750K of the bank's money :)
- Thread starter Tulamalula
- Start date
so would i. i think people are going to be in for a bit of a rude shock if theyre using soem of the high prices obtained for multis in belmont last year as an indication of what they get in the next year or so.
belmont
700,000
HD_ACE and sanj
He did not do any feasibility and to my knowledge not too much DD. He is just at the point in his life were he wanted to buy a development property (he earns a fortune as a supervisor up North). He did want a splitter, build at the back and reno the front. So I was looking in the areas I know for that product.
He just msg me this morning and mentioned he grabbed this one. Not what I would have grabbed but really keen to hear peoples views on it. As I haven't looked as this area really closely. Just read what what other people post on here and the occasional real-estate.com check
Thank you for the replies so far
700,000
HD_ACE and sanj
He did not do any feasibility and to my knowledge not too much DD. He is just at the point in his life were he wanted to buy a development property (he earns a fortune as a supervisor up North). He did want a splitter, build at the back and reno the front. So I was looking in the areas I know for that product.
He just msg me this morning and mentioned he grabbed this one. Not what I would have grabbed but really keen to hear peoples views on it. As I haven't looked as this area really closely. Just read what what other people post on here and the occasional real-estate.com check
Thank you for the replies so far
700,000
HD_ACE and sanj
He did not do any feasibility and to my knowledge not too much DD. He is just at the point in his life were he wanted to buy a development property (he earns a fortune as a supervisor up North). He did want a splitter, build at the back and reno the front. So I was looking in the areas I know for that product.
He just msg me this morning and mentioned he grabbed this one. Not what I would have grabbed but really keen to hear peoples views on it. As I haven't looked as this area really closely. Just read what what other people post on here and the occasional real-estate.com check
Thank you for the replies so far
Imo far overpriced. These sites are priced because of the potential to construct multis, so in theory more profit. Wont be making money doing a simple retain and build or even struggle doing a triplex in this area at this price.
To give you some idea, when i was looking in this area 18-24 months ago for a bigger development these site were going for 500-550k with minimal compitition. Back then i was looking at a 400k sale price per unit and around 3o-40% profit. Now sites are sitting at 700-800k for the same potential but the oversupply is going to see a drop in sale price. Would be lucky to get. 350 k i reckon.
This can be offset by selling off the plan but there is minmal demand at the moment and i believe some developers are now holding off.
Theres better areas to invest in for a smaller project like retain and build or triplex to be able to make money and not pay belmont high entry prices.
And the signs are there that it will show a correction and will be left with lower value, low yielding non profitable site.
But thats just my opinion and everyone has their own.
Cheers
I am certainly no expert in the area, but I have been looking around the place for the past few months, know the Epsom Ave place you linked to, now way would I have paid $700K for it. The street isn't that busy, but there's not a whole lot going on around there. You need a car to drive to local shopping Centre - Bogan forum as I call it - the park is nice, and the primary school nearby is popular.
When you drive around the area you see block after block after block of developments, retain and builds, triplexes, and up. There will be so much competition to sell whatever he builds as there really can only be a glut of little boxes on the market by the time all these *developers* have swooped in and paid top dollar hoping to make a buck.
The area isn't that great, it's still full of bogans doing burnouts.
I can buy the same thing in Dianella, a much better suburb (IMO) for the same price.
I just don't see people with a lot of coin wanting to move into the area and he'd have to really spiffy up the front house and maybe get $600K for it, and sell off the back - maybe get $300K
After subdivision fees, real estate agent to sell, renovations on front home plus the stamp duty he's paid on the $700K, he's going to come out at a nice loss if he went that way.
If he built a triplex, he's got the cost of removing the front house $20K, and the build say $200K each, so origianl purchase price:
$700K
stamps $20K
demolish house $20K
build $600K
holding costs
agent fees to sell
plus the rest
He's already up to $1.3million
then he competes with all the people who bought the same properties at $500K - who are selling their triplex boxes for $450K, say he selss each at $450K, that's only $1.3millionish
hence the reason I went completely off devvie blocks in the area, in fact, devvie blocks anywhere!
When you drive around the area you see block after block after block of developments, retain and builds, triplexes, and up. There will be so much competition to sell whatever he builds as there really can only be a glut of little boxes on the market by the time all these *developers* have swooped in and paid top dollar hoping to make a buck.
The area isn't that great, it's still full of bogans doing burnouts.
I can buy the same thing in Dianella, a much better suburb (IMO) for the same price.
I just don't see people with a lot of coin wanting to move into the area and he'd have to really spiffy up the front house and maybe get $600K for it, and sell off the back - maybe get $300K
After subdivision fees, real estate agent to sell, renovations on front home plus the stamp duty he's paid on the $700K, he's going to come out at a nice loss if he went that way.
If he built a triplex, he's got the cost of removing the front house $20K, and the build say $200K each, so origianl purchase price:
$700K
stamps $20K
demolish house $20K
build $600K
holding costs
agent fees to sell
plus the rest
He's already up to $1.3million
then he competes with all the people who bought the same properties at $500K - who are selling their triplex boxes for $450K, say he selss each at $450K, that's only $1.3millionish
hence the reason I went completely off devvie blocks in the area, in fact, devvie blocks anywhere!
I know this area very well as I live in the area and invest in the area. That road is not too busy at that location.
Speaking to a local developer, enquiries are coming off for multis, so townhouses would probably be a better bet. With regard to price, 35 Gild St sold last weekend of $825/sqm, so $836/sqm is not over the top IMO.
It's not such a bad location: walking distance to the Belvidere St shops. It's also close to the 37, which goes into the City.
In terms of end value, single level 4x2s in the area are selling for $549,000 with a low end finish on very tiny blocks with ridiculously small bedrooms. http://www.realestate.com.au/property-house-wa-belmont-113831787
Higher end townhouses are on the market for $650,000 http://www.realestate.com.au/property-house-wa-belmont-115920139
Just be aware that prices in the area are on the way down, this one got reduced $30k to sell: http://www.realestate.com.au/property-townhouse-wa-belmont-115350779
If I bought that house, something I would explore is designing 3 townhouses (unit 1, unit 2 and unit 3) then retaining the front and just building unit 3 down the back. For the retained house, renovate and try to convert the laundry to a second bathroom/laundry. The rent from the renovated front house and the new unit 3 should more than cover interest and other holding costs but you would have to run the numbers to confirm.
He will need to talk to an accountant about the tax implications of selling vacant land. Some mates did a feso of selling off their back yard and it was not worth it for them. He might be better off building and selling but again, talk to a good tax accountant about the tax implications because building and selling new with GST can be tricky to get right.
This could be worth looking into, see if it's in a rezoning area and if possible to retain and build behind. http://m.realestate.com.au/property-house-wa-bassendean-116050147
Oops, mobile version, I think you can type the numbers in to find it
Oops, mobile version, I think you can type the numbers in to find it
http://www.realestate.com.au/property-house-wa-bassendean-116050147
800sqm. I would presume R20? If they gave the address, we could look up the zoning. I would prefer something not already renovated because I like to do that myself.
me too.
Check out this nonsense - dev block Cloverdale for $849!!!
http://www.irealty.com.au/_r/p.cfm?ci=2159&sa=1&p=1314669&S=28665961&b=1161789
Check out this nonsense - dev block Cloverdale for $849!!!
http://www.irealty.com.au/_r/p.cfm?ci=2159&sa=1&p=1314669&S=28665961&b=1161789
That's nothing! At least it is R20/50/100. What about this then?
943sqm, R20/40, "FROM $959,000"
http://www.realestate.com.au/property-house-wa-kewdale-115845575
If either of those sold at that price, my house would be worth over $905,000. Pity is isn't.
OMG
well, at least it's *smack bang in the heart of all the action*
what action I hear you ask?
Why, Thursday night shopping at Bogan Forum of course!
well, at least it's *smack bang in the heart of all the action*
what action I hear you ask?
Why, Thursday night shopping at Bogan Forum of course!
Hey! "Bogan Forum" is open all the weekdays until 9pm! w00t!OMG
well, at least it's *smack bang in the heart of all the action*
what action I hear you ask?
Why, Thursday night shopping at Bogan Forum of course!
(coz if you had $950,000 you would sink it into Kewdale)
quadruple the bogan fun!
I can only see that area going down, down down, it has to, Rivervale/Belmont/Cloverdale/Redcliffe - in a property bubble of its own.
I can only see that area going down, down down, it has to, Rivervale/Belmont/Cloverdale/Redcliffe - in a property bubble of its own.
Got to. I want to start a "watch this space" thread with Redcliffe, Belmont, Cloverdale, Kewdale and Rivervale development sites. Car crash tv.
Like this for $3.5 million... http://reiwa.com.au/Buy/Pages/More-...1&listingid=10333752&listingno=3335466&puid=0
Prices are down? Even this on the market for "Buyers over $799k" "only" got $770,000.
http://reiwa.com.au/Buy/Pages/More-...1&listingid=10410827&listingno=3412622&puid=0
This one was "Over $950k", now "Over $799k"
http://reiwa.com.au/Buy/Pages/More-...1&listingid=10407183&listingno=3408975&puid=0
Any that are on for over $1,000/sqm are dreaming!
who is buying this stuff? For the first time in ages, looking at Perth market, I am sick of real estate. I don't want to buy anything, it is all overpriced rubbish. It's not like this is Sydney - maybe I should just go back to the original plan of buying a unit as close to Sydney CBD as possible. I am really worried we are too far through this cycle in Perth for this steam to keep going.
Dunno. With the latest batch listed, I think noone.
Me too.
Agree. I don't want to buy anything either.
My backup is to develop my Melbourne property. I will talk to my builder when I am in Melbourne next month.
Where I am looking it is too far through the cycle.
Judging by my links I guess it's obvious I'm not big on renovating.
I'm glad other people are though!
