I've decided to write an ongoing post similar to what other 'somersoftians' (westminster ) have done in the past to share some information and help build knowledge for everyone.
After some quick negotiations on Friday I am happy to announce I am the new owner of (subject to Due Diligence):
http://www.realestate.com.au/property-residential+land-wa-bayswater-200796683
The Development Plan:
The block is 450sqm with a zoning of R40 (plot ratio of 0.60). This will allow for 270sqm of build area, from this size it is enough space for, 4 apartments. Depending on the design this may be a mix of three, 2 bedroom and 2 bathroom units and a single bed/bath unit.
The block is vacant and backs onto a large park (public open space). The street is within a good pocket of Bayswater about 350m from the train station and minimal through traffic. I estimate there is a fall of about 5m from the front to the rear of the site which will require retaining.
The plan is to settle in about 3 months to give me a head start on the DA process.
Feasibility Information:
Land Purchase Price: $463,000
Purchase Costs: $20,000
Building Costs: $810,000
Holding Costs: $85,000
Selling Costs: $55,000
Contingency: 2% of total cost
Completed End Value: ($1,840,000)
The exit plan will be to keep and rent all the units at completion with a nice 7.5%+/- gross yield.
I?ll keep this thread updated as items progress and feel free to ask me any questions as you wish.
After some quick negotiations on Friday I am happy to announce I am the new owner of (subject to Due Diligence):
http://www.realestate.com.au/property-residential+land-wa-bayswater-200796683
The Development Plan:
The block is 450sqm with a zoning of R40 (plot ratio of 0.60). This will allow for 270sqm of build area, from this size it is enough space for, 4 apartments. Depending on the design this may be a mix of three, 2 bedroom and 2 bathroom units and a single bed/bath unit.
The block is vacant and backs onto a large park (public open space). The street is within a good pocket of Bayswater about 350m from the train station and minimal through traffic. I estimate there is a fall of about 5m from the front to the rear of the site which will require retaining.
The plan is to settle in about 3 months to give me a head start on the DA process.
Feasibility Information:
Land Purchase Price: $463,000
Purchase Costs: $20,000
Building Costs: $810,000
Holding Costs: $85,000
Selling Costs: $55,000
Contingency: 2% of total cost
Completed End Value: ($1,840,000)
The exit plan will be to keep and rent all the units at completion with a nice 7.5%+/- gross yield.
I?ll keep this thread updated as items progress and feel free to ask me any questions as you wish.