Residential Property that is a child care centre?

hey all,

would the fellow experts please give me some opinions on this one

http://www.domain.com.au/ore/Public...r=Emails&s_cid=EmailEnquiries:PropertyDetails

good location, price is a bit pricey, good size.

but what are the pro and cons of this property from purely a residential IP perspective?

does the fact that its a business now a positive or a negative, ie does it have more potential or will it cost more to get it back to a residential.

how does the large car park effect subdivision?

Comments much appreciated
 
price is a bit pricey,
How's that? Isn't it going to auction? (or do you know the reserve?)

does the fact that its a business now a positive or a negative, ie does it have more potential or will it cost more to get it back to a residential.
Only has more potential if you are planning to run the child care business there still (already has planning approval - presumably?)
I think you'll have to pay more because that picket fence is such a value-add :p

how does the large car park effect subdivision?
It doesn't
 
How's that? Isn't it going to auction? (or do you know the reserve?)

Only has more potential if you are planning to run the child care business there still (already has planning approval - presumably?)
I think you'll have to pay more because that picket fence is such a value-add :p

It doesn't

sorry, forgot to mention, agent said looking at $400k, thought it said it in the ad
 
if someone only wants a 6% yield out of the daycare then they may highball and seal everyone out of the deal....

it's a mixed bag of comm and resi.
 
if someone only wants a 6% yield out of the daycare then they may highball and seal everyone out of the deal....

it's a mixed bag of comm and resi.

yeah thats exactly what I thought,

but was wondering whether being a mix negatively or positively affects it in anyway

eg, I see it as a positibe but converting the property to residential might cost big $$$$

but im not sure and hence asking for opinions!
 
well, if someone is buying for a dev. site then they would offer as little as possible.

if someone want the business aspect of it - and let's face it, it's a business - if they only need a low yield to make it work then they can offer higher.

the only way these deals come off is if the centre is closing and/or the parent company has gone bust ala ABC. there were a TON fo sites picked up in the Northern Perth Suburbs when ABC collapsed - all were demo'd for 2 and 3 unit sites.
 
cool, so in summary, you are saying that the rent for this place would be low /lower then commercial property but most likely res property since commercial yields higher.

If i were to purchase, am I able just to simply buy and tear it down or would I not be allowed to....

from a purely residential perspective, using the hold for ever approach, say I purchased it a fair market price, would keeping the existing business going, a better approach?

Im just trying to get my mind around whether this is actually better then a identical block that doesn't have a child care centre on it? ie less/more hassles, more/less potential etc.

thanks Blue Card
 
If i were to purchase, am I able just to simply buy and tear it down or would I not be allowed to....
This is in a Res 1 Zone, so it would have to be operating under a non-conforming use. So from a planning & permits persepctive to knock down and build three (3) units, would be just like any other residential dwelling.

from a purely residential perspective, using the hold for ever approach, say I purchased it a fair market price, would keeping the existing business going, a better approach?
Looking at the ad, it is a receiver's auction, so maybe it is not a going concern. Do you have the skills to run this type of business?

Im just trying to get my mind around whether this is actually better then a identical block that doesn't have a child care centre on it? ie less/more hassles, more/less potential etc.

To make this a resi investment you would need to make a few internal changes and this would cost.

For a 3 unit site, the asking price is $133,000 per unit site or $139,690 per unit site inclusive of stamp duty. You are going to have to hold this property at a minimum of 2-3 years and probably much longer before development is feasible.

I am sure there are better development sites in the area.
 
thanks guys,

I was hoping to be able to get this at a good price as a residential property, and hence my questions

in an ideal hypotehtical situation, I was hoping to remove all the child care setup, rent it out as a house, and a few years down the track subdivide into 3 units,

as ive never done a subdiv before, I was wondering if this was a great opportunity or not,

and I thought that having a commercial setup, might be a bonus in a few years down the track

say I did remove the child care setup, how easy would it be to rent out as a Residential, I mean having 15 carparks is a bonus for some, but it might be a turn off.....you might feel like you were going home to a doctors office...and I dont like going to the doctors
 
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Hi ya PM,

I drove past there yesterday as I was in Frankston in the morning.

Location very good. Nice and wide site also. :)

It is a former childcare centre. There is no sitting tenant..........you are buying a box on decent dirt. If you've been guided with 400 K that's up to 450 K with closings and to get to DA.

Viz: 150 K a site..............bit rich even for that central location.

If you're looking as a land bank; to rent out as a dwelling for now whilst it appreciates and your future feaso to develop makes more numerically sound sense, that's OK, however your yield will be low for a very long time.

Also bear in mind how much of the internals have been changed to afford the flexibility of it's previous use as a CCC. Add some contingency to your purchase to bring up to dwelling standard. Only other use I can think of is to turn it into student accom. This will depend on how many bedrooms you can muster and how many bathrooms.

It is a nice bit of land if one can do more than three on it. ;)

Go to the auction and let us know.. I'm interested as I own one not very far from there
 
I am no expert, but I will offer an opinion anyway :)

I suggest you offer what the land would be worth as a development site for your units. I wouldn't pay for the carpark or the fence, as you will most likely need to rip them out.

If you can find someone to lease the place from you as a child care centre operator I would sign them up and get a commercial return and wait for the land to appreciate.

Question for the real experts out there:
If it is zoned for commercial and you take it back to resi and put units on it, can you take it back to commercial zoning again easily?:confused:
 
I am no expert, but I will offer an opinion anyway :)

I suggest you offer what the land would be worth as a development site for your units. I wouldn't pay for the carpark or the fence, as you will most likely need to rip them out.

If you can find someone to lease the place from you as a child care centre operator I would sign them up and get a commercial return and wait for the land to appreciate.

Question for the real experts out there:
If it is zoned for commercial and you take it back to resi and put units on it, can you take it back to commercial zoning again easily?:confused:

I'm no pro, but for the last one i presume it would be an application to local council to change the zoning. Obviously you are going to have to get someone with a good idea on how to go about this on ur side before commiting to the project
 
More units on site

The site is pretty big 900 plus square metres and the setback of neighbouring buildings not too big... and you've got two existing road crossovers.

I think you could put more than four units on here, bringing down the per unit site cost.

I'm planning to get four on a site that's only 580 square metres, but that's in a different area where greater density is being encouraged by council.

I don't think it would be hard to get council permission for a residential use given it's a residential area.

Just my unqualified opinion.
 
I don't think it would be hard to get council permission for a residential use given it's a residential area.

Just my unqualified opinion.

unqualified - absolutely.

the lot may be in a resi area, but the structure plan across the area may have that one little lot as "mixed use" or "business" or whatever.

that's a state planning level change - big costs, big wait, big holding costs while you wait....

local council will just be asked if they agree or not, and chances are they'll want to see a DA to approve built form over the site before they OK it.

it's more than just a "she'll be right - there's houses around it" attitude.
 
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