Property Value with DA

[pi2012]

Hello All,

We have got Plans and Permits to build 3 Double Storey Units (1 x 3br, 2 x 2br) on a block of land.
My question is how much does this adds Value to the property.
Property Next door with exact area was sold for $620,000 last week without any development approval or any other sort of addition.

 

[Andrew L]

I've found at the moment unless your at the bigger end of town eg 50+ units etc or if the DA is unique and unable to be obtained again. A DA adds very little value to your property above the cost of gaining it.

If you get a DA for 3 units and everyone else can only get 2 then you will gain huge value. But if everyone can spend 20k and 3 months to get the same DA theres little value in it.

 

[lizzie]

i've found that too. it costs around $20k to get the plans drawn and thru council ... and would only add another $20k on the value.

when things were really tight 12 months ago i put the townhouse site on the market - got a single deveper bite, but the couple of first home owners who put in low offers, offered more than the developer - so was worth more "without" spending the money on the da etc.

didn't sell - but would've been tempted if i hadn't paid the $20k

 

[MTR]

I've found at the moment unless your at the bigger end of town eg 50+ units etc or if the DA is unique and unable to be obtained again. A DA adds very little value to your property above the cost of gaining it.

If you get a DA for 3 units and everyone else can only get 2 then you will gain huge value. But if everyone can spend 20k and 3 months to get the same DA theres little value in it.

In areas I am targeting I am finding DA for 3 unit site adds great value, anything else is not worth chasing unless you plan to build at the back and just hold for cashflow.

Cheers, MTR

 

[josko]

Hello All,

We have got Plans and Permits to build 3 Double Storey Units (1 x 3br, 2 x 2br) on a block of land.
My question is how much does this adds Value to the property.
Property Next door with exact area was sold for $620,000 last week without any development approval or any other sort of addition.

Hi pi,

I have also found that there is not much value added. The only bonus is that the block appeals to developers as well as anyone else.

Then again if MTR is correct, it may depend on the area you are selling in and the stage of the cycle.

Regards JO