Opposite river in tightly held area. Could be a good opportunity for someone with high income to redevelop. Prime block to maximize street frontage. Will be interesting to see what it goes for. http://m.realestate.com.au/property-house-wa-ashfield-113710687
Perth - could be a good opportunity
- Thread starter INVSTOR
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You linked the mobile version of the site which won't work that well on computers.
Here's the other version of the same link: http://www.realestate.com.au/property-house-wa-ashfield-113710687
I have actually looked at this site for a few of my clients. The zoning is R25 as it is a corner site in the Town of Bassendean TPS. Most people would look at this site and assume four units at R25 (1654/350 = 4.72), however I'm fairly confident of squeezing an extra block on this site.
The sellers are seeking above $1.2m, and it is going to auction. That works out to being $240k a block. some unrealistic vendor is trying to sell blocks next door for $600k, which I doubt they are going to get - mind you I'm sometimes surprised in this market. http://www.realestate.com.au/property-residential+land-wa-ashfield-200573283
My rough feaso looks like:
Land: $1,200,000
Cost in: $55,000
Holding: $70,000
Subdivision: $120,000
Cost Out: $47,500
Contingency: $15,000
Costs: $1,507,500
End Sale:
2 blocks facing River: 350,000
3 other: 300,000
total: $1,600,000
No GST included.
$100k seems pretty light on for a $1.5m land subdivision, I would be wanting closer to 25% - 30% on cost. However, a builder will probably take on this site and also make the margin in the build.
One big concern is the proximity to the river, I would be getting a Geotech in that area!
The sellers are seeking above $1.2m, and it is going to auction. That works out to being $240k a block. some unrealistic vendor is trying to sell blocks next door for $600k, which I doubt they are going to get - mind you I'm sometimes surprised in this market. http://www.realestate.com.au/property-residential+land-wa-ashfield-200573283
My rough feaso looks like:
Land: $1,200,000
Cost in: $55,000
Holding: $70,000
Subdivision: $120,000
Cost Out: $47,500
Contingency: $15,000
Costs: $1,507,500
End Sale:
2 blocks facing River: 350,000
3 other: 300,000
total: $1,600,000
No GST included.
$100k seems pretty light on for a $1.5m land subdivision, I would be wanting closer to 25% - 30% on cost. However, a builder will probably take on this site and also make the margin in the build.
One big concern is the proximity to the river, I would be getting a Geotech in that area!
Correct, the untrained eye would think R20. However the scheme text has an amendment for corner sites and density bonuses.
LOTS OF MONEY TO BE MADE WHERE OTHER PEOPLE OVERLOOK OPPORTUNITY!
LOTS OF MONEY TO BE MADE WHERE OTHER PEOPLE OVERLOOK OPPORTUNITY!
I forgot about that!
HD Ace - I won't be at the Auction, we aren't too interested in the site.
Here is something that I did like:
http://www.realestate.com.au/property-house-wa-dianella-113761051
In fact we went for this one, but were beaten to the post by a cash offer at the $950k mark. Still not profitable to develop and make 20%. However my clients were looking to hold>
Chop the rear off, sell, do a bit of a reno and your Gross yield on a 700sqm block in Dianella would be above 6%. Pretty hard to beat for a buy and holder in this market!
Here is something that I did like:
http://www.realestate.com.au/property-house-wa-dianella-113761051
In fact we went for this one, but were beaten to the post by a cash offer at the $950k mark. Still not profitable to develop and make 20%. However my clients were looking to hold>
Chop the rear off, sell, do a bit of a reno and your Gross yield on a 700sqm block in Dianella would be above 6%. Pretty hard to beat for a buy and holder in this market!
I liked that one too. Thought it was a good one for a staged development or simply put in house at rear and hold front with small reno.
Gotta love the overlooked.
My site in Gwelup is R30 and 1224sqm but was being sold as a triplex block and had a picture on the RE website showing the outlines of possible subdivision.
It easily technically a 4 unit block with 24sqm spare
The risk and sums worked beautifully at 4 units, still worked at 3 but a lot higher risk and less reward.
How did you come up with those end sale figures? I guess the closest comparable would be Ingles Place, Bayswater. I find it hard to believe you could purchase a riverfront block for $350,000. If so, I'll buy one! http://m.realestate.com.au/property-residential land-wa-bayswater-200332323 (don't know how to turn mobile version off)
Re: Geotech - it would be worth getting. I've got a block A few houses up backing onto a riverfront block and soil doesn't contain much clay so I don't have to worry about extra costs for earthworks. I've heard there's a lot of clay on Hardy Road, Bassendean near Ashfield border though.
Gotta love the overlooked.
My site in Gwelup is R30 and 1224sqm but was being sold as a triplex block and had a picture on the RE website showing the outlines of possible subdivision.
It easily technically a 4 unit block with 24sqm spare
The risk and sums worked beautifully at 4 units, still worked at 3 but a lot higher risk and less reward.
There's no extra zoning for side lane ways is there? I wish!!
Gotta love the overlooked.
My site in Gwelup is R30 and 1224sqm but was being sold as a triplex block and had a picture on the RE website showing the outlines of possible subdivision.
It easily technically a 4 unit block with 24sqm spare
The risk and sums worked beautifully at 4 units, still worked at 3 but a lot higher risk and less reward.
yeah i bought a site in maylands last year that had been on the market nearly 4 years and i had put 5 or 6 offers on over the previous 2-3 years
994 sqm R40 site with 2 existing 2x1s on it which could be retaining and it was only 670k (compare that to the dianella one that just sold for 950k)
very hard site to deal with though, lots of difficulties
If you think you can get more, put your money were your mouth is and buy the block Personally I am a little more conservative. It is Ashfield! The whole, "come back to my river front block in ... Ashfield?" doesn't ring so well on the dinner party circuit so people aren't generally paying as much of a premium for the views.
My comparable was these:
http://www.realestate.com.au/property-house-wa-ashfield-113717723
Same size block and take off $200k for the build. Yes it's not street front or river front, but this is what you are competing with.
Personally I am a little more conservative. It is Ashfield! The whole, "come back to my river front block in ... Ashfield?" doesn't ring so well on the dinner party circuit so people aren't generally paying as much of a premium for the views. My comparable was these:
http://www.realestate.com.au/property-house-wa-ashfield-113717723
Same size block and take off $200k for the build. Yes it's not street front or river front, but this is what you are competing with.
But try getting Multis through Stirling at R30... Nevergonnahappen - Until the WAPC makes an example of a 'council' as discussed at last weeks Property Council Function...
Thats a shame looked like a good site..
How are you going finding and securing development sites in this market atm?
Looks tough.
Cheers
