mirrabooka, balga, nollamarra

[MTR]

Does anyone wonder if once the rezoning is official and a stack of blocks get redeveloped with 2, 3, or more houses that the Girra market will become over saturated? Think Balgacurrently where every 3rd old quarter acre block now houses triplexes. Prices stagnant due to so much supply. Residents complaining about all the development to whete the council may now make tougher R codes or something.

Ie if many developers buy in Girra and over a 5 to 10 yr period many develop. As well, the remaining big.block houses would nearly be the same price as the new places so ppl might just buy those instead?

Hi Beijos
I really do not see an issue, as I expect my properties will be developed and sold, in any case they will be positive cashflow from day one so it is not a concern to me whatsoever. There will always be highs and lows in property, I guess it is a matter of making sure one gets in at the lower base.

BTW, Balga properties at the moment are selling like hotcakes, I offered over asking price and someone offered more for a 3 unit site, what can I say, this market is hot (development sites).

Cheers, MTR

 

[Beijos2]

Thanks for those thoughts. I more meant the developed places (villas etc) were stagnant - but could be wrong!! Im sure the developable big blocks are still selling well.
Anyway, will keep watching.

 

[sanj]

Thanks for those thoughts. I more meant the developed places (villas etc) were stagnant - but could be wrong!! Im sure the developable big blocks are still selling well.
Anyway, will keep watching.

you arent the only one who wonders how and why people are buying those sites in nollamara etc unless they are either builders or are going to develop multis

imo profit for developers of villas in the area who are buying and developing now are a woeful 15% max at the moment, i suspect some will end up with closer to 10%

maylands is going a little bit that way at the moment, we are seeing people paying mid 800s for 1012sqm r40 sites and if they do townhouses the margin is bloody tight. makes it more difficult for people who want to turn a good profit

 

[westminster]

I'm new to all this so sorry about the dumb question but how can you get 6 units on a 698sq2 R40 block when you can only get 200 minimum site area per dwelling?? Maybe i'm reading the rules wrong..wouldn't you only fit 3 on there??

Ems

Ems,
It's the diferrence between a Mult Dwelling and a Grouped Dwelling. A Grouped Dwelling (be it single storey villa or double storey townhouse) each has a block of land which has a minimum size (200sqm for R40)
A multi dwelling (flats) have no minimum block size and the building size allowance is calculated by ratio to land size. In this case R40 is 0.6 plot ratio so you can build 418sqm of flat on a 698sqm block.

 

[MTR]

depends on the orientation.

i have put a triplex on a 662sqm lot, including access leg, but it was not your typical build.

why you would, though, when you could put six 2x1s on it is beyond me.

Hi Aaron
So if multi is the way to go, then why are developers not building these now, in areas such as Balga and Westminster they all seem to be villas (200sqm2), I presume this is what the market dictates.

Just found this one, only 1 left, perhaps this is the way things are going to go moving forward. Be very interesting to know what the costings were?? How profitable??

This type of development could possibly work very well in areas like Girrawheen/Koondoola, affordable.

http://www.realestate.com.au/property-apartment-wa-balga-111871627


Cheers, MTR

 

[westminster]

Unfortunately someone has to be the first to do it then create the market demand. Now that the area is saturated with villas an apartment is a pleasant change - especially nicely done ones like that link.

Aaron has designed a multi unit for a Balga address and he put some pricing in

http://somersoft.com/forums/showthread.php?t=82799&highlight=balga

 

[Aaron Sice]

I'm new to all this so sorry about the dumb question but how can you get 6 units on a 698sq2 R40 block when you can only get 200 minimum site area per dwelling?? Maybe i'm reading the rules wrong..wouldn't you only fit 3 on there??

Ems

no you're not reading it wrong at all, you're just readng part 6 - the bit that everyone else reads.

try reading part 7 of the current, Nov 2010 R codes.

a class 1 or 10a building is covered in part 6.

a class 2, 3, 4, 6, 9a or 9c building is covered with part 7.

other uses (7, 8, 9b and 10b) are not compatible with residential uses - and if they were, well, this would be Guangzhou.

 

[westminster]

Hi Aaron
So if multi is the way to go, then why are developers not building these now, in areas such as Balga and Westminster they all seem to be villas (200sqm2), I presume this is what the market dictates.

Just found this one, only 1 left, perhaps this is the way things are going to go moving forward. Be very interesting to know what the costings were?? How profitable??

This type of development could possibly work very well in areas like Girrawheen/Koondoola, affordable.

http://www.realestate.com.au/property-apartment-wa-balga-111871627


Cheers, MTR

PS it's not just market dictates. There are some very old school developers who haven't taken advantage of the 2010 updates to the Residential Design Codes which increased the flexibility of putting Multi Dwellings on properties. Prior to 2010 ammendment (and it was late in 2010 from recollection) it wasn't viable.

The Multi Dwelling codes were created to help bring about more affordable housing.

 

[MTR]

Hi Westminster
Thanks, would like the link.

I agree, it will be refreshing change, nice and modern.

I employed an architect to put together and sold a DA for an 8 unit site (ultra modern apartments) in Broadmeadows, Melbourne, similar demographics I guess to Balga. Most developers in this area were building villas/townhouses.

Nearly 3 years later and the builder has only sold 3 units and the prices dropped from $330K to $299K. It did not help that the market started to decline within 6 months of selling.



Cheers, MTR

 

[Aaron Sice]

I assume, MTR, you were taking advantage of the Transit City Network updates, ie Broadmeadows, Dandenong, Footscray etc....?

Perth is very different. The market here is changing fast.

 

[Aaron Sice]

The Multi Dwelling codes were created to help bring about more affordable housing.

....and also to reduce parking requirements, allowed to have less than one carbay per dwelling if the size and location is right.

Ft also allows the disassociation of parking from dwellings. For the first time in WA's history, you can now buy a dwelling without a carbay - or pay to have more than one - lawfully.

a shift in demographics is taking advantage of these new changes, which means a $399k property with two carbays can now be $349k with one, or $299k with none, or $315k with a scooter bay, or $305k with a dedicated bicycle bay.....

 

[westminster]

Hi Westminster
Thanks, would like the link.

I agree, it will be refreshing change, nice and modern.

I employed an architect to put together a DA for an 8 unit site (ultra modern apartments) in Broadmeadows, Melbourne, similar demographics I guess to Balga. Most developers in this area were building villas/townhouses.

Nearly 3 years later and the builder has only sold 3 units and the prices dropped from $330K to $299K. It did not help that the market started to decline within 6 months of selling.



Cheers, MTR

The link is in the post now. I found it an edited my post.

 

[MTR]

PS it's not just market dictates. There are some very old school developers who haven't taken advantage of the 2010 updates to the Residential Design Codes which increased the flexibility of putting Multi Dwellings on properties. Prior to 2010 ammendment (and it was late in 2010 from recollection) it wasn't viable.

The Multi Dwelling codes were created to help bring about more affordable housing.

I see, there will always be new blood coming to the game, so perhaps over the next couple of years things will change dramatically. If it means profit base will be higher I am for it.

The only problem I see is it will be tougher to get loans.

Cheers, MTR

 

[Aaron Sice]

The only problem I see is it will be tougher to get loans.

....not when your IRR is north of 40%.

 

[MTR]

I assume, MTR, you were taking advantage of the Transit City Network updates, ie Broadmeadows, Dandenong, Footscray etc....?

Perth is very different. The market here is changing fast.

Aaron
No idea, I left it in the capable hands of my architect, he was absolutely brilliant, the only one who could get 8 units on the site.

Cheers, MTR

 

[MTR]

....not when your IRR is north of 40%.

Nice.
I also have found a gem of a broker

 

[ems]

Hi All

I did say it would get sold very quickly
http://www.realestate.com.au/property-house-wa-koondoola-112568791?rsf=emailalert-propdetails


This one also got snapped up within 1 week, did anyone here buy it????
http://www.realestate.com.au/property-house-wa-girrawheen-112551743



MTR

Hi MTR,

Did the one in Binstead court sell? I can't see an under contract on the website.

Cheers
Ems

 

[MTR]

Hi MTR,

Did the one in Binstead court sell? I can't see an under contract on the website.

Cheers
Ems

Yes, it has sold.



I just got a heads up on a property which has not yet hit the market

68 Hainsworth Avenue, Girrawheen, corner block, they want $440K.
Rezoned to R40. Rectangle block
Alex, Ray White Mirrabooka will be selling this property.
I know a corner block similar size sold for $435K about 1 month ago in Girrawheen and there were multiple offers.

I would be looking at this one myself, however I have now started buying in QLD.

Of course anyone interested should do their homework. Also, Ray White are a pain coz they get some of the best prices for their clients.... damn it and they are very active in the area.

Cheers, MTR

 

[MTR]

Anyone up for a reno

Heres another cheapie, looks like it need some work, once again may be able to retain front, build at rear.

This is an out of area RE agent, I believe the pricing is wrong should be at least $325-330K

http://www.realestate.com.au/property-house-wa-girrawheen-112614867?rsf=emailalert-propdetails

I spoke to the RE agent this morning, this has already got an offer on it but apparently well below asking price... if you can believe that??, and it is a deceased estate. So I guess it still for grabs, may be worth a look at for those interested in getting their feet wet with a reno and perhaps a development at rear in the near future.



Cheers, MTR

 

[Rhinsor]

Heres another cheapie, looks like it need some work, once again may be able to retain front, build at rear.

This is an out of area RE agent, I believe the pricing is wrong should be at least $325-330K

http://www.realestate.com.au/property-house-wa-girrawheen-112614867?rsf=emailalert-propdetails

I spoke to the RE agent this morning, this has already got an offer on it but apparently well below asking price... if you can believe that??, and it is a deseased estate. So I guess it still for grabs, may be worth a look at for those interested in getting their feet wet with a reno and perhaps a development at rear in the near future.



Cheers, MTR

Going to go check it out today see if it is any good.