Highgate WA: let's build a baby apartment block thread

Discussion in 'Adding Value' started by westminster, 3rd Dec, 2012.

  1. westminster

    westminster P Plate Developer

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    After 5 days of negotiations, another buyer also competing and one decision made by flipping a coin my offer has been accepted (subject to finance).

    I don't have much hard facts for you until we bed it down more.

    The block is 249sqm zoned R80 which allows 249sqm of building on it 1:1ratio. It is a nice regular shape and flat with street frontage to a park. It does have a sewer line within its border that we need to work around.

    The vision is to build a 70sqm apartment (2 bed 2 bath) on the bottom/ground floor with 3 car bays and a visitor bay. Second floor will hold 2 apartments which are 85sqm which should be 3 bedroom 2 bath.

    Estimate cost: 1.2m
    Estimate rental rates (at 2012 rates) $500pw for smaller $600pw for 3 bed. $800pw furnished shorter term let.
    Estimated sale value (at 2012 rates) $500k for smaller, $600k for larger = 1.7m

    The plan is to sell one and keep 2 and probably rent one furnished and one unfurnished. I have a $50k CGT tax loss from selling a property to my Trust so I will carry that forward and use that to offset CGT on selling one.
     
    FormerLurker and charttv like this.
  2. sanj

    sanj Member

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    Nice work Myf, we've also just picked up a site in the area.

    How did you find the agent? I've never been too impressed with either of the 2 main agents who work at that company
     
  3. westminster

    westminster P Plate Developer

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    Thanks Sanj

    The agents were rude, difficult and patronizing fockers. I was doing conjunctional sale through my REA but they still drove me nuts with conflicting terms which might have been the Vendor but after 3 days I ended up writing a flame worthy email telling them to get their **** together and act professionally.
     
  4. Aaron_C

    Aaron_C Finance Broker

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    Nice work! Hope it goes well.
     
  5. sanj

    sanj Member

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    Haha I see they haven't changed. Unfortunately there are still some old school agents fairly entrenched in areas who survive on their longevity. They're getting weeded out but will be a while before they're all gone. I recently saw a $3m riverfront apartment for sale without professional photos!
     
  6. Aaron Sice

    Aaron Sice Seldom Seen Kid

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    Well done Myf - I was drooling when you sent me this.

    Keep it up!
     
  7. ris4rob

    ris4rob Member

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    nice stuff look forward to the hearing process!!
     
  8. westminster

    westminster P Plate Developer

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    I can't wait to hear about yours.
     
  9. Corey Batt

    Corey Batt Finance Broker

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    Looking forward to hearing more about this. :)

    Certainly haven't heard of a development like that done on such a small size block before.
     
  10. Jen_PFR

    Jen_PFR reno victim

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    Oooh excellent work!! Another one to watch with interest :D
     
  11. MTR

    MTR Bling Bling

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    Haha..... actually one of these agenta (A) retired years ago, then about 4 years ago he returned, the goss is he dont need the money.

    I can tell you there is much worse though....... just try Txby fat cat.

    MTR
     
  12. MTR

    MTR Bling Bling

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    Great stuff, looking forward to progress reports on this.

    I know the spot, I sometimes walk my dogs around this park, I live on the otherside Farnley Street.

    I am very keen to see the plans progress etc, the block is very small, but at the end of the day I have seen some amazing designs on smaller lots.

    Cheers, MTR
     
  13. thatbum

    thatbum law talking guy

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    Wow that's exciting news.

    I've always wondered about the feasibility of "baby apartment" projects. For example 3-4 units on a 700sqm-ish medium density lot. I thought it might be a nice alternative to usual squeezing 3 villas/townhouses in.

    I heard somewhere it actually would be the most optimised design for sustainability - but I never could lock down reliable costings for something like that.
     
  14. MTR

    MTR Bling Bling

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    Hi Westminster
    Those estimated values I think perhaps are too high, my neighbour purchased an apartment a stones throw from your site, high spec finish, 30 sqm2 balancy, city views, approx 100sq living space - $629K about 12 monts ago.

    Another unit which a friend was renting, sold recently, about 80 sqm 2 living space, tiny balcony however panoramic city views (8 block), perhaps 4 years old, sold within 1 week for $498K, average finish but the views were breathtaking.

    Perhaps I have it wrong but something worth rechecking.

    Cheers, MTR
     
  15. westminster

    westminster P Plate Developer

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    Thanks for the comparisons. There is little data as Highgate is so small so I have been comparing to surrounding suburbs too.
    My REA and myself based the figures with a range. It is hard to do a direct comparison of course because there is nothing much like it around. Some people will say that the development doesn't have a gym, pool or common areas and therefore worth less. Some will say not having those is a good thing as there will be very small strata/body corp fees.
    I feel that a high quality 'house like' development will achieve a good valuation especially as it's so handy to everything. The prices they are asking for St Marks development are higher than mine and although its closer to amenities I think that is it's downside. I for one wouldn't want to live right behind The Queens. But it's OTP anyway so who knows if their prices are correct.

    But honestly thanks for stepping up and saying that I should recheck. Constant monitoring and comparisons will determine the specifications/layouts and size for the apartments and valuation.
     
  16. MTR

    MTR Bling Bling

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    Hi Westminster
    My g/friend was going to purchase in St Marks but last minute bailed out as she decided that OTP was not for her, though these have been incredibly successful.

    Inner city is a different beast, there are many that want to live next to Beaufort Street as they love to be close to the action, though I am with you on this one.

    Look forward to updates.

    Cheers, MTR
     
    Last edited: 5th Dec, 2012
  17. propertyVIC

    propertyVIC PropertyVIC

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    Sounds good... Are all R80 blocks in that area allowing 1.1 building ratios?
     
  18. Aaron Sice

    Aaron Sice Seldom Seen Kid

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    yes, all.

    some concessions for height if you can prove sustainability over and above minimun BCA reqs.
     
  19. westminster

    westminster P Plate Developer

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    If she's still looking I'm going to sell one of mine :D
     
  20. westminster

    westminster P Plate Developer

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    R80 all over Perth allows 1:1 it's part of the Residential Design Codes.