Need ideas!

H

HectorXu

Hi guys, I have bought a pair of maisonettes in Elizabeth Adelaide back in 1998, I have recently community titled into 4 lots, (2 attached houses and 2 pieces of land at the back) Had those lands on the market for 9 month now and still not sold.:(

Would any one have any advice as to what can be done to convert those into some cash? :D
Build a cheap house? House and land package?
Any one can recommend a budget builder in Adelaide there? I will be in Adelaide in a week's time, perhaps I can go and visit them.

These are the blocks listed on realestate.com.au
http://www.realestate.com.au/property-residential+land-sa-elizabeth+grove-2884961
http://www.realestate.com.au/property-residential+land-sa-elizabeth+grove-2884891
 
it's not a matter of price, it's a lack of enquiry :(
Did have someone made an offer, I accepted, but the purchaser could not get finance because he wanted to get 100% finance and the bank only wanted to lend 80%.:(
 
HectorXu said:
it's not a matter of price, it's a lack of enquiry :(
Did have someone made an offer, I accepted, but the purchaser could not get finance because he wanted to get 100% finance and the bank only wanted to lend 80%.:(
Click to expand...

meh............

100 % lend,.........that was always doomed, that buyer was a dreamer.

If the pricing is right AND the marketing is reasonable, then the enquiry will be there,.............one can even sell a 70 sqm piece of land

ta
rolf
 
HectorXu said:
it's not a matter of price, it's a lack of enquiry :(
Did have someone made an offer, I accepted, but the purchaser could not get finance because he wanted to get 100% finance and the bank only wanted to lend 80%.:(
Click to expand...


Lower the price as Rolf suggested and the enquiries should follow.
Marg
 
contact some local builder sales reps. They need land in order to sell their houses and most would love to 'package' your land with their home and pop it on RE.com for you.
 
They are really tiny blocks, which are quite a long way out of the city... Did you do any market research to find out if people were interested in such small blocks before you subdivided.
I dont know Adelaide that well, but generally, blocks this small would be accepted very close to the city, but not so far out as these ones seem to be from the map.
I think you would do better if you combined the 2 blocks and sold them together...
 
Penny:

There are a fair few of those block sizes selling out this way. Its 30 minutes from the CBD, walking distance from Elizabeth City Centre.

The problem IMHO is the unfavorable view of Battleaxe/hammerhead blocks in the area. Essentially the area is full of 800-900sqm properties, with 350-500sqm subdivisions happening all the time. A standard King Solomon cut 'er in two block are having trouble selling right now, it will be worse still for BAB's. Seen a couple BAB's sitting on the market for more than 12 months.

My guess would be that those who are buying in the area and considering building are primarily investors, and with such low values it doesn't require much capital to buy your own larger property, bowl and subdivide without paying someone else's profit margin.

I'd build two units/small 2-3 bedder 'homette' out the back. Try Weeks Macklin. Budget, dollar to quality value is great, but they can be somewhat frustrating at times (then again, maybe that's all builders!)
 
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When developing, you can get out of the deal at any number of points. Sounds like it might be more fruitful to build. What do the local agents say?
 
What is someone going to build on 270sqm? A garage?

Blocks are too small to be of use for a family home, and for the cost of building + land a FHB can buy an existing maisonette on 600+.

Sounds to me like its land with no market.
 
DaveMSydney said:
What is someone going to build on 270sqm? A garage?

Blocks are too small to be of use for a family home, and for the cost of building + land a FHB can buy an existing maisonette on 600+.

Sounds to me like its land with no market.
Click to expand...

Pretty much. The only market I can conceive of is to build a small home to market towards older couples. Seen a lot of fighting over the nicer units in the area, as older couples and their children want them to move out of rundown maisonettes and downsize to a low/no maintenance garden.
 
Have you thought of having plans drawn up to show prospective buyers what can fit on that land? As said, they seem awfully small which would possibly put people off. If you can get a 2 bed villa with a single garage to fit, it would possibly make the deal more appealing to couples.

Approved plans would be even better.
Marg
 
CJay said:
Penny:

I'd build two units/small 2-3 bedder 'homette' out the back. Try Weeks Macklin. Budget, dollar to quality value is great, but they can be somewhat frustrating at times (then again, maybe that's all builders!)
Click to expand...

Yes, think of doing some 60sqm granny flat style ones, paying about 90k each in Sydney in brick veneer (that's include all drainage stuff) , maybe reduce cost a bit by building clad, any advice from someone local?

A new little house would be worth $150k would it not? (as old ones are about 110-130K ish in the area?)
 
HectorXu said:
A new little house would be worth $150k would it not? (as old ones are about 110-130K ish in the area?)
Click to expand...

Hector, $160k gets you a house on 681 sqm?
http://www.realestate.com.au/property-house-sa-elizabeth+grove-110603445



Also seeing
http://www.realestate.com.au/property-residential+land-sa-elizabeth+south-200172921

would make me think your block (on a pure sqm by sqm basis) value at most $53,500


Actually, I would personally be much more interested in looking at this

http://www.realestate.com.au/property-house-sa-elizabeth+grove-110926287

than say a brand new "granny flat" style building with no backyard - but that could be just me....

The Y-man
 
house on 260m2

I am currently preparing a development application for a house on a lot 260m2 in size. Totally feasible for house that has 3 bedrooms and double garage. Just need a good design.
 
Hi there, the lot size is not the problem, neither is the community title. The problem is the end value.

Elizabeths, all of them, Park, Vale, Downs, etc rose from $80K for HT homes not that long ago & reached the high 200s to above 300K

I looked at blocks that could end up with 3 houses on about $35K apiece before building. But the profit margin was just not worth the hassle. That was before I saw the BOOM of course.

Say I bought your block for $50K and I build a house very economically for $130K, my cost would be about $200K

I can sell for $250K but the ones who profit would be the govt [GST, tax & stamp duty], the bank [interest costs] and the selling agents.

I risk my money, my time, my efforts, for who or for what?

If I held, I end up at the mercy of managers & poor tenants.

So it makes sense for you to build & hold, not for me to buy from you to build.

KY
 
The Y-man said:
Hector, $160k gets you a house on 681 sqm?
http://www.realestate.com.au/property-house-sa-elizabeth+grove-110603445



Also seeing
http://www.realestate.com.au/property-residential+land-sa-elizabeth+south-200172921

would make me think your block (on a pure sqm by sqm basis) value at most $53,500


Actually, I would personally be much more interested in looking at this

http://www.realestate.com.au/property-house-sa-elizabeth+grove-110926287

than say a brand new "granny flat" style building with no backyard - but that could be just me....

The Y-man
Click to expand...

hmmmm Good point...

Now I am thinking maybe just build a granny / transportable and just rent it out, say 150k for 2 of those buildings, and rent out for $140 each, and those would be a reasonable return?
 
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