Melbourne Development Sites (<400K)

albanga

albanga

Hey All,
Just keen to get peoples feedback on potential profitable development sites for around 400k in Melbourne. Toward the end of the year I am looking at a potential duplex or 3*townhouse development.

Would be roughly looking to spend 400k on the site and then another 600k on the build (including subdivision and holding). So in order to make 15-20% I would need to be selling them for 1.2mil.

I have had my eye on Albion, Tullamarine, Glenroy, Fawkner and Thomastown. The numbers can stack up if you buy right I believe in these areas and I am also considering them if I was to choose to hold one as well as I believe they all have good capital growth potential.

Interested to hear peoples feedback on these suburbs but also others as well.

Thanks in advance
 
Hi

Hi Albanga,

We are doing 2 town houses in East Keilor, construction has just started two weeks ago.

We have already sold one and the other one will sell shortly. Total project cost was 1.1 Mill and we will net about 1.4 Mill.

My tip is this, build quality and if you see a land that works for you got for it.

There are so many builders looking for these types of lands all the time including me.

Have a look at east Keilor but the area is in the price range of 500K to 600K.
 
albanga said:
I have had my eye on Albion, Tullamarine, Glenroy, Fawkner and Thomastown. The numbers can stack up if you buy right I believe in these areas and I am also considering them if I was to choose to hold one as well as I believe they all have good capital growth potential.

Interested to hear peoples feedback on these suburbs but also others as well.

Thanks in advance
Click to expand...

This is my take (far from expert) on the areas you listed that I've looked into
-Albion - very hard to find anything where numbers stack up to give even 15% margin
-Glenroy - decent blocks are pricy but numbers stack up well
-Fawknder - looks good but could find very few town house sales
-Thomastown - good but being heavily farmed for suitable sites
 
Hey All,

JP - Where is your site? I live in Niddrie so next door to you! I think EK has just jumped out of my reach of affordability. I am a big believer in the ripple effect which is why I am keen on tulla. EK, APW and Niddrie have all gone and Tulla is still affordable.

Bumble and mind master - I determined these sites based on a few things including price, block size, current development and future growth potential.
 
Hodge said:
Jp, how the hell did you make the numbers stack up by just building 2?
Click to expand...

JP's business partner is a builder so the numbers stack up quite easily.
500k purchase plus closing costs.
http://www.realestate.com.au/property-house-vic-keilor+east-118900619

600k subdivision, construction, holding would equal his 1.1mil outlay.
Without a builder I highly doubt you could do it for that cost though.

Sale:
http://www.realestate.com.au/property-house-vic-keilor+east-117456043
 
Are town houses really worth $700k in East keilor or is that a one off sale? So then what's the median price for a house? I'm not from the area so excuse my ignorance.
 
Hi

Hey guys,

Sorry for the late reply just been flat out.

These town houses are larger then your average home. Where we are located in East Keilor provides parents to send their kids to schools like Penleigh Essendon grammar.

As Albanga said my business partner is a builder so we are not getting charged a 20% margin.

Because there are two of us, we didn't even have to borrow that much.

Why we are attracting 700K plus.. I will show you pictures once we are near complete. The quality is there and you will see how much effort went into the place.

We are also doing a renovation for a client of ours who bought in Niddrie. I will post some pictures..

As for airport west my mate just sold her place for 1 Million plus lol... have a look for this sale on google.
 
But seeing that he's not charging 20% hasn't he lost an income? He'll gain 20% profit but lost 20% income in his company. You probably would be better off than your mate?
 
Hi

In terms of the profit split, I am a believer in equal share and I will be giving him more chunk of the profit :) for his hard effort.

I cant even describe how we look at each other... my wife often thinks we treat each other like husbands and wife lol
 
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