Need ideas!

[HectorXu]

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

Yes, very good point.

When I had those 2 HT semis, I was just thinking about how to maximise those, thus subdivision Now those blocks are worth something, just that value I can not use which is annoying. If I build, I can use those as collateral to borrow for other projects as it is going to have a cashflow, it's just I am in Sydney and building could be a hassle.
Was thinking of selling those 2 front houses, but the CGT is going to kill it as those were very cheap back in 98

 

[HectorXu]

Site area 66.42 sqm

Building floor space 75.30 sqm



http://www.google.com.au/imgres?q=t...&w=468&h=702&ei=EQf1T9e7EYqXiQe7spjeBg&zoom=1


The Y-man

heheh... I could put a few of those there.

What do you guys think little 60sqm 2 br granny/transportable homes someone mentioned about $58K built up? (still waiting for firm quote)

 

[kum yin lau]

Hi Hector, You've probably found that rentals in Adelaide are not at all bad & especially because you bought a pair of semis for a lowish price on big land.

Re building, I had actually done the leg work & went to look at the 'granny flats' & transportable homes. You can see them out at Cavan north of Grand Junction Rd.

The costs are not much less than building a house.

Try Weeks Peacock. You can get a 3BR house for around $98K and they look neat & presentable, far better than a lot of the houses I see in Elizabeth. You'll get good rent of at least $200 pw I suspect $250 pw easily.

Community title is not bad; you save quite a lot on subdivision costs.

Be aware that the builders have their own engineering companies & they'll sting you on earthworks that are totally unnecessary.

Your finished house will cost around $150K each if you go for the basics without the frills. your finished product will value at $260-280K maybe more if you're lucky.

The granny flat costs about $50K & the footings & connections take the cost up to around 90-100K

How about doing a battleaxe block of 450m2 at the back? Would the numbers work to your advantage?

KY

 

[kum yin lau]

Hi again, I reread your post & note that you've already done the subdivision.

That being the case, you should proceed to build. You're getting good cap value even if you have to pay someone to help you build.

Unfortunately I'm not living in Adelaide now otherwise I can help. Try First Million. His name is Brijesh & he's building his subdivision.

The person to contact in Weeks Peacock is Michael Ow. He can do the layout plans for a very low price. He charges something like $1200 all in. I built 4 so it was really cheap.

Alternatively, the transportables are not at all bad. But resale will be equally hard, I think.

Good luck,
Kum Yin

 

[HectorXu]

Hi again, I reread your post & note that you've already done the subdivision.

That being the case, you should proceed to build. You're getting good cap value even if you have to pay someone to help you build.

Unfortunately I'm not living in Adelaide now otherwise I can help. Try First Million. His name is Brijesh & he's building his subdivision.

The person to contact in Weeks Peacock is Michael Ow. He can do the layout plans for a very low price. He charges something like $1200 all in. I built 4 so it was really cheap.

Alternatively, the transportables are not at all bad. But resale will be equally hard, I think.

Good luck,
Kum Yin

Thank you KY, that is very useful information I will contact those guys and see what we can come up with.

Let's hope my other subdivision in Pooraka can sell much better (Torrents title)

 

[Jtkumnick]

If you want more money than what its worth as just land, you'll probably want more than what its worth when its built on too.

 

[HectorXu]

If you want more money than what its worth as just land, you'll probably want more than what its worth when its built on too.

What price listed is what my real estate agent suggested, how do you know how much I want?

 

[HectorXu]

Thanks to every one's comment and research
,
1) I have contacted the builders, and getting some prices together.
2) Lowered the asking price with the agent.

Fingers crossed!

 

[The Y-man]

Thanks to every one's comment and research
,
1) I have contacted the builders, and getting some prices together.
2) Lowered the asking price with the agent.

Fingers crossed!

All the best!

The Y-man