My new purchase - Highbury SA

Brady

Brady

My new purchase/development - Highbury SA

Hi Everyone,

As mentioned in other threads I was going to share my latest purchase closer to settlement date. Finance was organised a while ago, it settles this Friday. Sharing now as I'm off to Thailand next week :)

7 Observation Drive, Highbury SA 5089 (800sqm corner block approx 13km from CBD)
http://www.realestate.com.au/property-house-sa-highbury-115650191

Purchase Price $335,000 - offer was made unconditional
Purchase costs $16,500

Plan will be to have tenants for 12-18months paying $350p/w (they move in Friday) then will be subdividing and building 2 two storey 3x2

Subdivision $22,000
Demolition $8,000
Pro fees $10,000 (town planner, engineer, allownaces etc)
House #1 $235,000 (approx 215sqm)
House #2 $255,000 (approx 235sqm)

Total costs $881,500

End minimum expect value based on property that sold next door
http://house.ksou.cn/p.php?q=Highbury&sta=sa&id=327766
House #1 $540,000
House #2 $560,000

Total Value $1,100,000


Approx. Net profit $218,500 profit margin 20%
 
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Nice one. Are the build price fixed and turn key . also the finishing look higher end for the house that you linked. Is your build going to be similar ?
 
bez23 said:
Nice one. Are the build price fixed and turn key . also the finishing look higher end for the house that you linked. Is your build going to be similar ?
Click to expand...

Prices are approx from what I've been quoted from the builder I will be using at just under $1100 per sqm turn key. They will be higher end as well, next door is 280sqm though mine will be approx 215 & 235sqm.
 
Brady said:
Hi Everyone,

As mentioned in other threads I was going to share my latest purchase closer to settlement date. Finance was organised a while ago, it settles this Friday. Sharing now as I'm off to Thailand next week :)

7 Observation Drive, Highbury SA 5089 (800sqm corner block approx 13km from CBD)
http://www.realestate.com.au/property-house-sa-highbury-115650191

Purchase Price $335,000 - offer was made unconditional
Purchase costs $16,500

Plan will be to have tenants for 12-18months paying $350p/w (they move in Friday) then will be subdividing and building 2 two storey 3x2

Subdivision $22,000
Demolition $8,000
Pro fees $10,000 (town planner, engineer, allownaces etc)
House #1 $235,000 (approx 215sqm)
House #2 $255,000 (approx 235sqm)

Total costs $881,500

End minimum expect value based on property that sold next door
http://house.ksou.cn/p.php?q=Highbury&sta=sa&id=327766
House #1 $540,000
House #2 $560,000

Total Value $1,100,000


Approx. Net profit $218,500 profit margin 20%
Click to expand...

Congrats, looks like an exciting project. Take you long to find this?
 
Ad5 took a reasonable amount of time searching about 6months, missed a fair few in that time but only due to higher offers.

This one came on the market Sunday, inspection and offer Tuesday contract signed Wednesday. House didn't actually get to have a office open inspection, but managed to have about 10 groups through it just from calling the agent. Mine was 1 of 8 offers, wasn't the highest but had the best conditions to suit the vendors. Was happy to get it and thinking back happy I missed out on the other properties. 1 of these will likely be my PPOR
 
Congratulatons Brady, wouldn't mind if you keep posting updates, even if it meant a year and a bit from now when you move in 1 of them. Enjoy the o/s trip too.

:cool:
 
Couldn't edit original post?...

Actually made a mistake in the original calculations.

$218,500 approx net profit / $881,500 approx total costs

= 24.8% approx profit margin.

Less holding costs which will be minimal as property will be tenanted
 
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I havent looked into subdivisions in great detail but wouldn't there also be significant costs for water/sewerage and power? I've read in other threads people paying a lot for this when doing a subdivide.
 
Brady said:
Prices are approx from what I've been quoted from the builder I will be using at just under $1100 per sqm turn key. They will be higher end as well, next door is 280sqm though mine will be approx 215 & 235sqm.
Click to expand...

Hi Brady,

Still learning about subdivision in Adelaide because usually it is hard to find something that can return >20%.

Since it's 1 bedroom less and much smaller living area for your property compared to http://house.ksou.cn/p.php?q=Highbury&sta=sa&id=327766 , I wonder how you get the figure of 540 and 560? Since house and land packages sell for around high 300s for 3-2-1 + approx 25k turn key- albeit single story and smaller living area. I would think 3-2-1 double story will be in the mid-high 400s?

p/s Should catch up in next Adelaide meeting !

Cheers,
bez
 
bez23 said:
Hi Brady,

Still learning about subdivision in Adelaide because usually it is hard to find something that can return >20%.

Since it's 1 bedroom less and much smaller living area for your property compared to http://house.ksou.cn/p.php?q=Highbury&sta=sa&id=327766 , I wonder how you get the figure of 540 and 560? Since house and land packages sell for around high 300s for 3-2-1 + approx 25k turn key- albeit single story and smaller living area. I would think 3-2-1 double story will be in the mid-high 400s?

p/s Should catch up in next Adelaide meeting !

Cheers,
bez
Click to expand...

1 less bedroom, but will have a better lay out. The one linked is 3 bedroom but upstairs but the rumpas room isn't much of a room. My blocks are going to be larger. The sale was in Sept 2012 which wasn't a very strong time for that market, Adelaide market in that area his moved since then.

3-2-1 that I know of are on the otherside of Highbury, I don't know of any that are for sale on the lower side of Lower North East Rd. This will be double story that will be over looking a reserve in a nicer location on larger blocks, it will be build to a similar spec to houses next door.

At this stage nothing is set in concrete, no planning made or professional designs drawn... just some attempted scale stuff from me :)

Sound good, will be o/seas for few weeks as of Tuesday but after that sounds good
 
Quick update.


Settlemetn happened last month and tenant moved straight in paying $300p/w, this was intially going to be $350p/w but the property isn't in the best shape (one corner of the roof has some issues). Also tenant looking after all water charges.

Tenant has agreed that won't be calling me for any maintenance issues will look after himself. I'm self managing the property so no PM costs.


As for the roof issues, this doesn't bother me. The house is going to be demolished in 18months. So long as it holds up til then I'll be happy.
 
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