Thank you for the numbers!
Perth ugly ducklings??
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Thank you for the numbers!
Singo
The reason I purchased in Willagee as I mentioned previously, sandwiched between blue chip areas, no brainer.
There are no comparable sales in terms of end values for Willagee 3x2 villas, new stock, only old stuff and that does not cut it IMO. Villas in Spearwood and Hammy selling for $500-535K, inferior area in comparison to Willagee.
Some new villas in neighbouring area Palmyra sold for $720K (superior area), snapped up within 1 week, that's the only new similar stock which I could compare when I was buying. The other stuff are old renovated State houses on smaller lots of around 385 sqm, once again hard to compare, one recently sold I think around $695K, older home, renovated.
From my research and discussing this with agents who live and breath the area, I would say with new builds, front villa could sell for around $600K, middle perhaps $580K, rear $590K. These figures I personally think are achievable for this area, as it continues to rise and there will be huge demand for this product. Villas should provide excellent returns/profits, do your own research of course and don't forget if you have a slopping block factor in the extra site works.
However, I am going Myf model for Willagee - 6 apartments as rezoning to R40, the sweet spot will be around $450-480K, 2x2, time frame longer but profits much greater.
For those thinking of villas, still great area/profits because the end value is high.
The reason I purchased in Willagee as I mentioned previously, sandwiched between blue chip areas, no brainer.
There are no comparable sales in terms of end values for Willagee 3x2 villas, new stock, only old stuff and that does not cut it IMO. Villas in Spearwood and Hammy selling for $500-535K, inferior area in comparison to Willagee.
Some new villas in neighbouring area Palmyra sold for $720K (superior area), snapped up within 1 week, that's the only new similar stock which I could compare when I was buying. The other stuff are old renovated State houses on smaller lots of around 385 sqm, once again hard to compare, one recently sold I think around $695K, older home, renovated.
From my research and discussing this with agents who live and breath the area, I would say with new builds, front villa could sell for around $600K, middle perhaps $580K, rear $590K. These figures I personally think are achievable for this area, as it continues to rise and there will be huge demand for this product. Villas should provide excellent returns/profits, do your own research of course and don't forget if you have a slopping block factor in the extra site works.
However, I am going Myf model for Willagee - 6 apartments as rezoning to R40, the sweet spot will be around $450-480K, 2x2, time frame longer but profits much greater.
For those thinking of villas, still great area/profits because the end value is high.
Thanks MTR.
I am not thinking of buying this particular site. It is beyond what I can do for some time. Retain and build in areas less than 400k is what I can do for the time being. Already have a potential site (in Gosnells, but it could have slope/sand issues, but still will be profitable as it was a bargain) and hoping to start from there and move on.
I am not thinking of buying this particular site. It is beyond what I can do for some time. Retain and build in areas less than 400k is what I can do for the time being. Already have a potential site (in Gosnells, but it could have slope/sand issues, but still will be profitable as it was a bargain) and hoping to start from there and move on.
Clay?? is that what you mean?
If the figures stack up go for it.
The only thing that I would consider is what the market is doing in this area in terms of sales??? I have an issue if there is no demand for the area if you need to sell
How did you get a bargain???
Clay?? is that what you mean?
If the figures stack up go for it.
The only thing that I would consider is what the market is doing in this area in terms of sales??? I have an issue if there is no demand for the area if you need to sell
How did you get a bargain???
Clay, could be. And definitely some sloping towards the back.
Haven't made up my mind whether to sell the land, build and sell or build and keep and what to do with the older one. It is a +ve cash-flow property thus I am not in a hurry to do anything.
It was a mortgagee sale, never hit the internet and the agent wasn't aware of the zoning. And it was early 2013 and that area was just starting to move
There are houses in perth under 400k?
Bought a few some time ago. By the time I am ready to buy in Adelaide there may not be any houses for less than 250k or +ve cash flow. At your current acquisition phase, you would have bought them all
Because there aren't new 3x2 villas on them.
I can vouch for MTR's numbers - they look about right to me.
Yeh i probably came across to aggressively, use to other forums and talking about other things ha
I just seen that it is only a 2x1 house so yeh i guess fair enough.
Something he didnt take into calculations though i dont think, was having to knock down the house, im unsure on how much that would cost?
@MTR is one of the posters on here im trying to learn most from. Im hoping to get a full time job soon, currently working 32 give/take as a casual. Im not far away from having a really good look and TBF i sort of have already started.
I dunno id just prefer to pay more for a 760sqm block with a house, although only 2x1 then a 3x2 exact same position on 250sqm
What are peoples thoughts on this effort, just came across it from having a look around on REA.
Bought this 3x1 on 870sqm block for 550k in Heathridge (Only a month ago).
http://www.realestate.com.au/property-house-wa-heathridge-117672867
Then has subdivided and is selling the back block 350sqm. Advertised as http://www.realestate.com.au/property-residential+land-wa-heathridge-200988187
for 300-320k.
Has done well IMO. Because he could sell that front one for a fair bit more than 230-250k and make a profit.
Also @MTR (Why cant you tag like usual forums grr) do you realistically at least want to make 20% ? Or is it not worth it? I wouldve thought any profit is good, obviously needs to cover holding cost and whatever else is involved that i cant think of, or need to learn.
Bought this 3x1 on 870sqm block for 550k in Heathridge (Only a month ago).
http://www.realestate.com.au/property-house-wa-heathridge-117672867
Then has subdivided and is selling the back block 350sqm. Advertised as http://www.realestate.com.au/property-residential+land-wa-heathridge-200988187
for 300-320k.
Has done well IMO. Because he could sell that front one for a fair bit more than 230-250k and make a profit.
Also @MTR (Why cant you tag like usual forums grr) do you realistically at least want to make 20% ? Or is it not worth it? I wouldve thought any profit is good, obviously needs to cover holding cost and whatever else is involved that i cant think of, or need to learn.
Generally you would - especially if you are an investor. However there are a lot of downsizers/professional couples/small families who wish to have a nice low maintenance brand new house with new fittings and fixtures rather than an old house on a block they have to upkeep.
Knocking down was around $20k this year and will go to around $30k next year - well that is what we are being told to expect due to the high increase in landfill levy. I did include it in the $700k very rough costing.
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Yeh fair enough, sorry i thought MTR did the costings get mixed up between you and MTR, your another im trying to learn from with DT/Aaron Sice aswell.
So hat 700k would be say roughly 220k each to build each villa?
Is that roughly how much it cost to build these days? Can you go cheaper. I remember reading about someone successful just building with the cheapest company or something, cant remember if it was collier homes or someone starting with an 'S'.
Westminster, how would i go about getting a general idea of how much it cost to build all types of houses ect ?
Also im looking at something in the joondalup council area, how do i go about finding the proposed Rezoning for the area? Ive typed in Joondalup city council housing plans ect. Maybe a link so i could work my way back?
For quinns i could use that property finder that told me each zoning for each property ect.
Thanks
Sorry if im posting wrong thread, asking too much or derailing the initial idea of the thread.
http://www.joondalup.wa.gov.au/Develop/LocalHousingStrategy.aspx
The files on the right hand side.
Call some builders? read some of the other threads that people have started on here. Most include their values on what it costs to build and what they are building, you'll notice the trends.
The files on the right hand side.
Call some builders? read some of the other threads that people have started on here. Most include their values on what it costs to build and what they are building, you'll notice the trends.
For apartments I use $2500/sqm and for Villas I use $1500/sqm - both can generally be enough for turnkey depending on the level of finish and the number in the block. It may or may not be enough to cover all the provisional sums like headworks, earthworks etc etc
My last triplex cost $630 for every single thing inc headworks but I have allowed for inflation and higher brickies costs by adding 10% on. It's always good to allow 10% contingency
My last quad was 1m for everything but that was higher spec, 4 x 2 with theatre and almost 200sqm.
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Willagee is or should I say was a State housing area, there are no comparable sales as mentioned for 3x2 villas (brand new builds).
New builds will always be more attractive than old renovated home on small lot, unless we are talking about period homes, but we are not.
My research has included surrounding areas which have much higher median price value, once again little stock, 3x2 villas (new) with end value of around $700K, can we achieve $600K, for Willagee....you bet
I therefore also researched the better pockets of Spearwood/Hammy Hill, as I am building 3x2 villas in Spearwood I know what they are worth. If you are west of Rockingham Road villas jump up to perhaps around $535-545K, depending on the spec. Median price for Willagee I think around $590K and rising, Spearwood I think around $545K, however from my observation it is not as hot as Willagee at the moment, I can therefore assume there will be further upside to this area for the moment, especially seeing the area will be rezoned shortly. Spearwood has already been rezoned.
My block in Willagee is around 776 sqm, if I was building villas I am confident that I could achieve those end values mentioned. Unless you do the research you wont know. However, building costs have also gone up.
This is how I see my figures if I was building villas today on my Willagee block
$700K land/buying costs etc
$700K villas (3x2) - in total using my current builder/high specs/including headworks
(I have a flat/rectangular block in the best location in Willagee)
$40K holding costs
1,440,000
$600K - front villa
$580K - middle villa
$590K - end villa
$1,770,000
Approximately 23% gross profit ($330,000)
I actually expect to achieve higher prices, just my opinion and of course it will be dependent on the location within the area.
As I mentioned I am actually now looking at building 6 apartments, higher profit, and will be looking at putting plans together next year ready to submit when zoning goes through.
MTR
For apartments I use $2500/sqm and for Villas I use $1500/sqm - both can generally be enough for turnkey depending on the level of finish and the number in the block. It may or may not be enough to cover all the provisional sums like headworks, earthworks etc etc
My last triplex cost $630 for every single thing inc headworks but I have allowed for inflation and higher brickies costs by adding 10% on. It's always good to allow 10% contingency
My last quad was 1m for everything but that was higher spec.
I cant believe I only paid $635,000 for my 3 villas, high spec including headworks/everything, my builder was trying to source more business, now he does not need it anymore, damn it and he prices have gone up. I expect to pay close to $700,000 for my next 3 villas. I guess builders are putting up their costs, so we just have to live with it.
@MTR @Westinster , thankyou for some detailed discussion.
Can i just ask what does end value mean? Does that mean top dollar you could expect?
If i had a 900sqm block and the land is proposed R30, how many villas could i put on this land?
My parents tell me R30 generally means 3 houses. But im pretty sure ive read somewhere else where its divided into a big 10000 number to be worked out.
Edit: Block has 25m frontage, however it is on a fair slope.
Before looking at the block, it looked flat on the net. Thought i could do 3-4 villas behind each other 2 at front, 2 behind. However by looking at the bloke that doesnt seem able and maybe 3 side by side would be a better go if i can do it with a R30.
Can i just ask what does end value mean? Does that mean top dollar you could expect?
If i had a 900sqm block and the land is proposed R30, how many villas could i put on this land?
My parents tell me R30 generally means 3 houses. But im pretty sure ive read somewhere else where its divided into a big 10000 number to be worked out.
Edit: Block has 25m frontage, however it is on a fair slope.
Before looking at the block, it looked flat on the net. Thought i could do 3-4 villas behind each other 2 at front, 2 behind. However by looking at the bloke that doesnt seem able and maybe 3 side by side would be a better go if i can do it with a R30.
End value just means the value of the house/unit(s) on completion.
Eg you spend $X on site, $Y on constructing stuff, and end value is $Z.
Hopefully Z is greater than X + y + profit margin
Here is a link on R codes that may be handy, Westminster is the expert when it comes to this.
What DT said about end values
This is what I like to see, multiple offers in first week, don't know what they got but there was competition, who would have thought these prices for houses in Willagee, OK not villas but my point is people are paying high prices to get into the area, a very good sign.
http://www.planning.wa.gov.au/637.asp
Now if you want try to secure a bargain you should start chasing the property that did not sell at auction. We purchased another in Butler Street (R40) for my niece for $625K about 3-4 months ago and it needed renovating and site works. I suspect the agent does not sell much in this area and not that savvy should have sold.
