New WA Residential Design Codes are out! (effective 2nd Aug)

[MTR]

Ok I'll use a different example - this sold for $408000, no work done, rented for $490/wk. I think a house in Giirawheen would rent for $390? (not sure, don't know the area well), ($5200/yr diff) I'm not saying I know all the answers, just thinking out loud !
http://www.realestate.com.au/property-villa-wa-yokine-112743543

Hi INVSTOR


Its really a different strategy though, and you are comparing a unit with house/land.
Rent in Girrawheen varies depending on condition/size of the property, range from $360-400 pw.

I personally think long term one would achieve better growth in Girrawheen or Westminster, purely because of the development potential.

Yokine is far superior area, and if it were a development site then I think its a no brainer for growth, but then we would also be looking at entry level of at least $800-850,000 as opposed to Girrawheen at around $400,000, Westminster $480,000-$500,000.

MTR

 

[tambourineman]

without fully considering the planning requirements etc there are several designs available for less than $200k for a home this size, as an example (I realise that by the time you sign the contract it typically ends up ten percent dearer):

this place has a starting price of $109k?

http://www.realestate.com.au/property-new+home+design-wa-8010023

 

[westminster]

without fully considering the planning requirements etc there are several designs available for less than $200k for a home this size, as an example (I realise that by the time you sign the contract it typically ends up ten percent dearer):

this place has a starting price of $109k?

http://www.realestate.com.au/property-new+home+design-wa-8010023

It's a very big "from" in this instance. Triplexes etc are more expensive to build as they generally aren't nice easy shapes so that they get more from the block - they have zero lot walls (build to boundary), more complicated roof lines etc.
Then they need to be turnkey so you have painting, floor coverings, window dressing, air con, landscaping, paving etc.
Then earthworks, power, sewerage.
Seriously a triplex will cost $580-$630k for 3 by the time you add everything in.

My rough guesstimate on Aaron's suggestion of four 3 bed apartments would be $7-750k.

 

[tambourineman]

Should be able to make a dollar at those costs I would have thought but who knows its a couple of years away do you have anything in that area ?

 

[westminster]

Should be able to make a dollar at those costs I would have thought but who knows its a couple of years away do you have anything in that area ?

I have a triplex in Westminster which is 2 suburbs closer to the city and fairly similar demographic.
I built to get the rental yield. Cost was 450k land ( and house which I rented out for a few yrs) and then built the triplexes in 2011/12 for $630k inc every single thing. They now rent for $480, $475 and $465
Currently not very profitable for selling but I wanted to hold and get the rental yield and access equity for next deal.

 

[INVSTOR]

Hi INVSTOR


Its really a different strategy though, and you are comparing a unit with house/land.
Rent in Girrawheen varies depending on condition/size of the property, range from $360-400 pw.

I personally think long term one would achieve better growth in Girrawheen or Westminster, purely because of the development potential.

Yokine is far superior area, and if it were a development site then I think its a no brainer for growth, but then we would also be looking at entry level of at least $800-850,000 as opposed to Girrawheen at around $400,000, Westminster $480,000-$500,000.

MTR

You a probably right. We'll go back to this thread in ten years and see how they performed. I can't believe how many blocks in Perth were available 6-12 months ago. Land is disappearing quickly. We kept a newspaper when my daughter was born 14 years ago. The real estate pages are interesting. How quickly things have changed!

 

[tambourineman]

I have a triplex in Westminster which is 2 suburbs closer to the city and fairly similar demographic.
I built to get the rental yield. Cost was 450k land ( and house which I rented out for a few yrs) and then built the triplexes in 2011/12 for $630k inc every single thing. They now rent for $480, $475 and $465
Currently not very profitable for selling but I wanted to hold and get the rental yield and access equity for next deal.

this is along the lines of what I want to do.

 

[rooky]

I have a triplex in Westminster which is 2 suburbs closer to the city and fairly similar demographic.
I built to get the rental yield. Cost was 450k land ( and house which I rented out for a few yrs) and then built the triplexes in 2011/12 for $630k inc every single thing. They now rent for $480, $475 and $465
Currently not very profitable for selling but I wanted to hold and get the rental yield and access equity for next deal.

hi westminster,

I am reading your posts for quite while. You seem to have good knowledge of development process and costs iinvolved. But seems your 630k cost for triplex is way too much. Having said that, I am newbie socorrect me if I am wrong.

Below is what i think is more realistic turnkey triplex development cost in balga/ westminster /nollamara for flat block and no easements running into property.

Land with home 450k (consider balga)
Stamp duty and settlement 20k
Subdivision 10k
Power, water and sewage 15k
Demolition 15k
3 units construction turnkey 510k (average spec)

Total cost 1020k.

As mentioned before, correct me if I am wrong.

 

[westminster]

hi westminster,

I am reading your posts for quite while. You seem to have good knowledge of development process and costs iinvolved. But seems your 630k cost for triplex is way too much. Having said that, I am newbie socorrect me if I am wrong.

Below is what i think is more realistic turnkey triplex development cost in balga/ westminster /nollamara for flat block and no easements running into property.

Land with home 450k (consider balga)
Stamp duty and settlement 20k
Subdivision 10k
Power, water and sewage 15k
Demolition 15k
3 units construction turnkey 510k (average spec)

Total cost 1020k.

As mentioned before, correct me if I am wrong.

Hi rooky
No worries - I was including all the head works etc in that amount so my total was 1.08m which is 60k more than your estimate. I think I paid more than $15k in head works (power , sewerage and water) but I can't confirm as I don't have my figures with me.
Btw it's pretty hard to get a flat block with no easements in the area mine was pretty flat with no sewer lines in it but I had to do a small amount of piling as I built up to the border on one side near the sewer in the neighbours yard. And my seemingly flat block needed a little retaining between the villas once you jam 3 houses on it.
I also did a pretty nice spec and fenced off front gardens and used some render which did cost extra.
But I would say our figures are pretty much the same.

 

[rooky]

Hi rooky
No worries - I was including all the head works etc in that amount so my total was 1.08m which is 60k more than your estimate. I think I paid more than $15k in head works (power , sewerage and water) but I can't confirm as I don't have my figures with me.
Btw it's pretty hard to get a flat block with no easements in the area mine was pretty flat with no sewer lines in it but I had to do a small amount of piling as I built up to the border on one side near the sewer in the neighbours yard. And my seemingly flat block needed a little retaining between the villas once you jam 3 houses on it.
I also did a pretty nice spec and fenced off front gardens and used some render which did cost extra.
But I would say our figures are pretty much the same.

Thanks for feedback, Westminster. How much do you think normally retaining walls for 3 units on 728 sqm flat block will cost? I have not factored them in my calcualtion.

 

[Jake D]

Thanks for feedback, Westminster. How much do you think normally retaining walls for 3 units on 728 sqm flat block will cost? I have not factored them in my calcualtion.

How big is the slope? Is it to the road or the rear? How close will you build to the retaining wall? What is the soil classification? What finish do you want for the retaining wall?

 

[westminster]

Thanks for feedback, Westminster. How much do you think normally retaining walls for 3 units on 728 sqm flat block will cost? I have not factored them in my calcualtion.

I'd hate to say as it can vary a lot but if you allowed $5k then I think you'd be ok.

 

[INVSTOR]

Perth councils merging

Bassendean council has just merged with Bayswater council. I'm guessing the proposed zoning changes for Town Of Bassendean will be scrapped, and they will start over again with proposed zoning changes? Anyone have knowledge what has happened in past with merges? Maybe rezoning will be higher?
http://m.perthnow.com.au/news/weste...-of-merger-plans/story-fnhocxo3-1226688033434

Past news
http://www.abc.net.au/local/stories/2011/06/10/3241020.htm

http://m.perthnow.com.au/news/weste...wn-of-bassendean/story-fnhocxo3-1226663195345

http://www.inmycommunity.com.au/new...-seek-Ministers-help-on-amalgamation/7646243/

 

[HotRod]

Bassendean council has just merged with Bayswater council. I'm guessing the proposed zoning changes for Town Of Bassendean will be scrapped, and they will start over again with proposed zoning changes? Anyone have knowledge what has happened in past with merges? Maybe rezoning will be higher?
Past news
http://www.abc.net.au/local/stories/2011/06/10/3241020.htm

All these mergers will be driven by committees and sub-committee under the prudence of the department of local government.

I expect all these things will be negotiated and could go either way I guess.

 

[MRO]

I suspect the zoning will stay the same to minimise the changes involved in combining goverments.

Why add another layer of complexity in an already difficult time.

It may change later but I don't think it would change as part of the combining process.

 

[UrbanPlanner]

Link to map of changes below..

http://www.mediastatements.wa.gov.a...hments/7607/LGA_ProposedAreas_A3_July2013.pdf

Will post some advice to clear things up from one of the planning lawyers we work with when I'm not on my iPhone..

My opinion - things will largely be business as usual for at least the next 4-5 years.. Strategies like housing strategies that talk about rezoning will still progress as these are part of the bigger picture of Directions 2031. Just because some local governments are merging doesn't mean theres no longer a need for infill development and housing. Once the councils 'agree' to the mergers in 2014, I'd imagine they'd begin the process of reviewing/consolidating town planning schemes.

I'm more interested in the sub-regional strategies that are due to be released by WAPC in the first half of next year

 

[Aaron Sice]

i look forward to canning dissolving into gosnells.

 

[UrbanPlanner]

i look forward to canning dissolving into gosnells.

Ahh I'm the opposite! Gosnells have given me nothing but headaches in the past, Canning have been alright despite the dodgy Council (now sacked). I am disappointed that Stirling didn't get chopped up and fed to the wolves

Info from Flint Moharich on LG amalgamations attached (hopefully ) in relation to my previous post