? so many options ? what to build ?

Looking at doing a bit of building. There are so many options, some the numbers don't add up so they get thrown away but many others where the numbers do work, how to select the best? I guess the best isn't always the one that has the potential to make the most money, some are more fun that others.

Lots of old houses on ~750sqm blocks around the $280-$300k mark, plenty of nice rectangles, currently a good of courtyard homes being built in the area. Prices vary wildly from $260 for 2b townhouse to $500k for 3b townhouse and lots of 3b courtyard homes around the $350k - $450k. The higher priced places take longer to sell, some seem to be way too cheap and sell very quickly.

How do people decide whether to build 2 courtyard homes with 3br or 2 courtyard homes with 4br but small yards, or 4 units 2b each or townhouses? Only looking at average residential block developments, building big stuff comes a lot latter.

In the area anything under $300k is selling well but once over that it takes 3mth+ to sell, on average.

The original plan was to build 2 courtyard homes with 3 bedrooms, 2 bathrooms, double garage. Nice quality. But lately I've been thinking 2 bedroom units might be better.

The possibilities are endless.

Just throwing ideas around and was wondering who people talk with, what sort of decision making process do they use. What criteria other than $$'s motivate you to build housing?

Almost a physcology type question but stuck it in adding value because most investors doing developments are browing through here.

cheers
Graeme
 
Hi Graeme,

I am always bugging my favourite RE Agent for advice / ideas. They are always in the market and know what people are preferring.

As they say - if you're investing it is safer to go for the type of property that MOST people want. This is what MOST people can afford to buy or rent. As a bonus you will always get your premium for new product.

In my area this product is 3bed 2bath 2gar. However 4 bed is also safe and will attract a premium.

We are not in a city so you may be safe with 2 bed but I would be tending towards 3 bed if I were you.

Regards, Ian
 
rockstar is pretty spot on.

you have to decide what your end goal is. are you going to hold and rent out the property or sell.

once you've narrowed that down then you have to ask and look and see what is selling easily and for the best price, or talk to the pm's about what is renting for a premium.

as example, we are going to hold our townhouse development to rent. they are going to be 2 bedroom. pm advised to put in two small bathrooms (one ensuite) as the likely tenants would be professional couple or uni students sharing and then they can have a bathroom each - and a third toilet downstairs. we were also advised to make the bedrooms as big as possible to that there is room for queen bed and desk with computer. put down tiles and only carpet the bedrooms and laminate the benchtops.

so - what is your end goal for the project?
 
In my area this product is 3bed 2bath 2gar. However 4 bed is also safe and will attract a premium.

We are not in a city so you may be safe with 2 bed but I would be tending towards 3 bed if I were you.

Regards, Ian
Thanks Ian, similar to what I was thinking, the 3bd/2ba/2g is the easiest option. But there is potential for 2bd/1ba/2g, given the small number of flats in the area. properties under $300k selling quicker than those over but most of the new knock down 1 build 2 developments are priced between $300k - $400k so taking a little bit longer to sell. There is also a large influx of English migrants that are looking for large house on large block ( I can't do anything for these people ).

Had a read of the council dev/community plan.
22% of households (and growing) are lone persons.
Average persons per house 2.53 (falling)
couples with kids 45% of families
couples with no kids 37%
single parent families 17%

90% live in detached low density housing
9% live in flats
30% own house outright
44% purchasing house
21% rent

56% of households own 2 or 3 cars
6% do not own a car

Council is pushing for higher density housing, currently 99.9% is single story but council are talking about planning for 3-4 story developments near the transport corridors.

Got to get out and talk to a few more REA's.

Regards
Graeme
 
How do people decide whether to build 2 courtyard homes with 3br or 2 courtyard homes with 4br but small yards, or 4 units 2b each or townhouses? Only looking at average residential block developments, building big stuff comes a lot latter.


Graeme


I had the same problems a few years ago on a development that I never went ahead with. The end product depends on your block size (large sqm per unit may be good for luxury or high end), what council allows, what will rent (if you want to keep it) what is most popular to buy now and and what will in the future, (find this out on rpdata or residex etc.).

I with plans for 12m depth 7.5m width townhouses, single garage all living on bottom level (approx 65sqm without garage) and 3 or 4 bed combo upstairs, approx 90sqm. 2 bathrooms up and toilet and laundry downstairs.

2 things set the floorplans apart - the top level could basically be two seperate living areas if 2 single people rented, they would only have to share the kitchen and downstairs. meanwhile a growing family could also rent with 4 beds.

I chose this because it was versatile and would could suit different peoples needs, if 4 beds didn't rent easy I could always advertise it as a 3 bed.

lots of new developments with multimedia and security gates now, too.

most important visit every open inspection you can that fits the criteria of what you are looking at... se what is the most popular and identify the reasons why.
 
Quoll, what suburb/area are you thinking of building in? Might twig a few ideas as to what would be the best option.

Gools
 
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