Is unit in Hornsby a good IP buy?

[Shahin_Afarin]

Gosh Rixter you love South Wenty don't you?!

But seriously China with that money I would be looking at almost anywhere in Sydney that is at least a 1000sqm block of land that has good frontage and close (within 400m or 800m) of train. You got options for normal multi unit development, Afordable housing Sepp and over 55's Sepp.

The good news for you is that with your budget you will be generally looking at councils that have flexibility attitudes to development.

I would look at zoning and how I can develop the hell out of the property.

Regards

Shahin

 

[Rixter]

Gosh Rixter you love South Wenty don't you?!

No. but the bank does

 

[Shahin_Afarin]

Hey large lands, good zoning, I'm not complaining.

 

[westminster]

OK thinking outside the square for you but in a not too scary way

Mixed Use Terrace $700k Woolamaloo
http://www.realestate.com.au/property-house-nsw-woolloomooloo-112596803

 

[streetie]

OK thinking outside the square for you but in a not too scary way

Mixed Use Terrace $700k Woolamaloo
http://www.realestate.com.au/property-house-nsw-woolloomooloo-112596803

surely a place that looks that good and is in the heart of the Sydney city would be more than 700k?

 

[china]

There is far more supply in Hornsby than South Wentworthville where I stuck my money. See below..


South Wentworthville

Houses - 1,277 or 68%
Semi-Detached / Townhouses - 587 or 31% or suburb
Flat, Unit or Apartments - 18 or 1% of suburb
Other Dwellings - 3 or 0% of suburb


Now compare that with Hornsby....

House - 2,876 or 38% of suburb
Semi-Detached / Townhouses - 586 or 8% of suburb
Flat, Unit or Apartments - 2,336 or 31% of suburb
Flat, Unit or Apartments: In a 4+ storey block - 1,779 or 23% of suburb
Other Dwellings - 28 or 0% of suburb.

Source 2011 census.


As you can see Hornsby has twice (%) the number of units etc and half (%) the number of houses than South Wentworthville.

Now this is just one of a few other underlying fundamentals that need to be taken into consideration when conducting ones DD on potential areas.

I hope this gives you better perspective when it comes down to supply & demand equations.

Thanks Rix. I had not considered census data. It does make a good and obvious point about supply and demand.

 

[china]

Gosh Rixter you love South Wenty don't you?!

But seriously China with that money I would be looking at almost anywhere in Sydney that is at least a 1000sqm block of land that has good frontage and close (within 400m or 800m) of train. You got options for normal multi unit development, Afordable housing Sepp and over 55's Sepp.

The good news for you is that with your budget you will be generally looking at councils that have flexibility attitudes to development.

I would look at zoning and how I can develop the hell out of the property.

Regards

Shahin

I just don't think that I could cope with building /reno, let alone massive property development. It would not be consistent with passive income. I am trying to buy some property -resi and/or commercial, mixed - and hold for capital growth over the next few years. This way, I think that I have hedged against inflation and have diversified my holdings.

 

[china]

OK thinking outside the square for you but in a not too scary way

Mixed Use Terrace $700k Woolamaloo
http://www.realestate.com.au/property-house-nsw-woolloomooloo-112596803

Thank you.

Good suburb, well within budget and on paper looks very suitable.

A few questions.

1. I wonder whether this property has any tenant demand either resi/commercial - i don't think it is a family home and i am not sure how many "creative agencies" are looking around

2. With these old terrace houses, I believe that there are significant council restrictions on any renovation or redevelopment due to heritage protections - you will also note that both sides of the terrace are bound to houses on both sides - whilst I do not intend to do any redevelopment - council restrictions dampen demand from developers when it comes to resale

3. There is almost no land content ?

 

[Aaron_C]

Thank you.

Good suburb, well within budget and on paper looks very suitable.

A few questions.

1. I wonder whether this property has any tenant demand either resi/commercial - i don't think it is a family home and i am not sure how many "creative agencies" are looking around

2. With these old terrace houses, I believe that there are significant council restrictions on any renovation or redevelopment due to heritage protections - you will also note that both sides of the terrace are bound to houses on both sides - whilst I do not intend to do any redevelopment - council restrictions dampen demand from developers when it comes to resale

3. There is almost no land content ?

1) Families don't live in the inner city. It's rented to young people who share houses and/or run businesses/offices. You are focusing on the wrong crowd. Plenty of demand.

2) It is considered normal. Plus a developer won't buy it in the classical development sense but that isn't your focus. Focus is on location, proximity to the CBD and maybe value add through renovation. Young professionals would pay big money for renovated terraces houses with restored period features and a modern extension inside.

3) Doesn't matter that much. People pay lots per sqm for these. Obviously if you can get more then even better.

 

[Shahin_Afarin]

I just don't think that I could cope with building /reno, let alone massive property development. It would not be consistent with passive income. I am trying to buy some property -resi and/or commercial, mixed - and hold for capital growth over the next few years. This way, I think that I have hedged against inflation and have diversified my holdings.

Another option is to buy and keeping renting the house. Get a DA on the land and sell it with the DA. This too may not be for you but just consider all the long term options.

 

[starter]

Aaron, how would the bank finance a property like that terrace? Could you get resis rates or does it have to be a comm loan? Or is it dependent on who you rent it out to?

 

[Aaron_C]

Aaron, how would the bank finance a property like that terrace? Could you get resis rates or does it have to be a comm loan? Or is it dependent on who you rent it out to?

Resi like anything else. Up to 95% subject to the valuation factors being OK.

 

[westminster]

Thank you.

Good suburb, well within budget and on paper looks very suitable.

A few questions.

1. I wonder whether this property has any tenant demand either resi/commercial - i don't think it is a family home and i am not sure how many "creative agencies" are looking around

2. With these old terrace houses, I believe that there are significant council restrictions on any renovation or redevelopment due to heritage protections - you will also note that both sides of the terrace are bound to houses on both sides - whilst I do not intend to do any redevelopment - council restrictions dampen demand from developers when it comes to resale

3. There is almost no land content ?

Whilst I'm not familiar with the Sydney market much I thought it would suit your ideals more.
1. It may already be tenanted - that would be a bonus or you would need to talk to local REAs and get an idea of potential rent as commercial. You could rent it residential but it would probably need some work to make it more resi again.
2. Most restrictions are on the face facing the street maintaining 'look and feel' of the area. With this property I wouldn't be looking at developing but keeping as it with good yields and good CG due to location
3. Compared to an apartment it is very high land content. That is why I think it is more suitable. Inner city properties have very small land parcels but generally good growth regardless.

 

[TheShuffler]

Although this looks 'cheap' on paper there are reasons. It is on a main road and very close to meth-clinic plus housing commission places.

 

[westminster]

Although this looks 'cheap' on paper there are reasons. It is on a main road and very close to meth-clinic plus housing commission places.

Thanks - I don't know the Sydney market at all - so my pick was just based on an example of what I would consider and then of course do better due diligence to see if it was a suitable property.

Even with those 2 downsides I would still consider it providing all factors outweighed those.

 

[Aaron_C]

Although this looks 'cheap' on paper there are reasons. It is on a main road and very close to meth-clinic plus housing commission places.

Yep. That's what they said about Fitzroy (in Victoria) 20 years ago. Now it's some of the most expensive real estate per sqm. Can't change much about the main road I suppose but that's normal for those areas as they are always busy.

 

[TheShuffler]

Agree definitely not a reason not to buy. Just noting there is a reason it is 'cheap' now. Bourke St in that location is not a motorway either however it is one of the main throughfares from Woolloomooloo to Surry Hills.

They also used to say similar things about Balmain with all the wharfies and rough the area was - now some of most expensive realestate in Sydney!

 

[china]

Another option is to buy and keeping renting the house. Get a DA on the land and sell it with the DA. This too may not be for you but just consider all the long term options.

Thank you. I will certainly look out for development potential but will leave the actual development to others.

 

[china]

Thanks - I don't know the Sydney market at all - so my pick was just based on an example of what I would consider and then of course do better due diligence to see if it was a suitable property.

Even with those 2 downsides I would still consider it providing all factors outweighed those.

Ok, I will check it out in the next few weeks. May I ask how did you suddenly come across this property on real estate.com.au?

I ask this as I think I should keep searching for inner city properties with rental potential as well as commercial potential.

 

[Aaron_C]

Ok, I will check it out in the next few weeks. May I ask how did you suddenly come across this property on real estate.com.au?

I ask this as I think I should keep searching for inner city properties with rental potential as well as commercial potential.

Realestate.com.au is your friend, you can suscribe to daily updates. I check it every few days and sort by 'newest-oldest' to get the latest information on my favourite suburbs. Sometimes they pop up on realcommercial too but not exclusively.