Thoughts on Westminster?

Discussion in 'Where to Buy' started by la0, 12th Feb, 2014.

  1. la0

    la0 Member

    Joined:
    12th Feb, 2014
    Messages:
    9
    Location:
    Perth, WA
    Hi, new to the forums and interested in your opinions.

    I know of a block in Westminster coming onto the market soon. 728m? zoned R40. Very standard block for the area, suitable for a triplex development. It currently has an old 3 x 1 house and a large 1 x 1 granny flat. Total rental would be between $500 - $600 per week for both in their current state (more with a reno but I probably wouldn't renovate a development block).

    I haven't seen a lot available in Westminster so interested in thoughts. It may go to auction so how much would you expect to get something like this for? Is this an area you would consider for a triplex develpment in the next 12 months? How much would a triplex development cost in Perth at the moment (ball park)?

    Thanks everyone :)
     
  2. INVSTOR

    INVSTOR O+

    Joined:
    28th Dec, 2007
    Messages:
    5,075
    Media:
    6
    Location:
    Aus
    She's a nice girl, quick thinker, very bright. :p
     
    jim1964 likes this.
  3. mrdobalina

    mrdobalina Member

    Joined:
    2nd Jan, 2014
    Messages:
    337
    Location:
    Somewhere
    I think you've missed the boat on Westminster. It's gone gangbusters in the last 18 months, like other suburbs with development potential.
     
  4. HD_ACE

    HD_ACE Game-Changer

    Joined:
    13th Sep, 2011
    Messages:
    1,487
    Location:
    Perth
    Ahh too quick :D
     
  5. MTR

    MTR Bling Bling

    Joined:
    24th Feb, 2007
    Messages:
    7,683
    Media:
    32
    Location:
    My World
    Agree, the boat has sailed.
    Also, have been told that villas are harder to sell at the moment in Balga and Westminster.
     
  6. westminster

    westminster P Plate Developer

    Joined:
    22nd Nov, 2010
    Messages:
    5,503
    Location:
    Perth, WA
    It really depends on the price.
    Triplex cost at the moment for everything inc demo through to strata would roughly be $650k (+/- 10%)

    Development + block + profit >= sales value
    eg
    650k + 500k + (20% of $650k + 500k) >= 1.4m
    650 + 500 + 230 = 1.38

    So we can see that if a block is greater than 500k and the end value is 1.4m then it's a no go. (Well not for me) Here's hoping I did my maths right and I may or may not have put my <> the right way :rolleyes:

    Nawww :) thanks
     
  7. stumpie

    stumpie Member

    Joined:
    20th Dec, 2013
    Messages:
    287
    Location:
    Perth
    2nd that... so has girrawheen.
     
  8. DaveM

    DaveM KFC Buyers Agent

    Joined:
    19th Mar, 2011
    Messages:
    4,953
    Location:
    Sydney/Adelaide
    I dont really like westminster, she always wants things her own way and has a million questions on every topic for us to answer.

    Or do you mean the suburb? :D
     
  9. Truly Exotic

    Truly Exotic Property Deal Finder

    Joined:
    14th Jul, 2009
    Messages:
    1,424
    Location:
    In between Bahamas and Monaco

    Hmmmmm.. How can we take you seriously when there is clear bias in your post :D:D:D
     
  10. westminster

    westminster P Plate Developer

    Joined:
    22nd Nov, 2010
    Messages:
    5,503
    Location:
    Perth, WA
    People take me seriously?!?!?!?
     
  11. MTR

    MTR Bling Bling

    Joined:
    24th Feb, 2007
    Messages:
    7,683
    Media:
    32
    Location:
    My World
    Blocks in Westminster are now heading over $550-580K, your figures above I think are pretty close, though I would add 10-15% more for holding costs, stamp duty etc. It really makes no sense to buy in this area.

    There is also additional risk now of an oversupply of villas in Balga and Westminster therefore prices of villas may start to fall back??.

    I believe those who are now buying assume the market will continue to rise a risky proposition.

    MTR
     
  12. perthguy

    perthguy Member

    Joined:
    7th Jan, 2014
    Messages:
    1,869
    Location:
    Perth
    Nollamara too?
     
  13. Chomp

    Chomp Member

    Joined:
    29th Apr, 2007
    Messages:
    540
    Location:
    WA
    I have been advised that anything less than 750m2 is not good for triplex (design wise). That is for your standard rectangle block with a 20m frontage.
     
  14. perthguy

    perthguy Member

    Joined:
    7th Jan, 2014
    Messages:
    1,869
    Location:
    Perth
    Would that depend on the r-code and single storey vs double storey? I know in my area they do R40 triplexes on less than 750.
     
  15. Chomp

    Chomp Member

    Joined:
    29th Apr, 2007
    Messages:
    540
    Location:
    WA
    That is for 3 single storey 3x2 with a double garage. I cant see numbers stacking up for town houses but maybe that's just me.
     
  16. westminster

    westminster P Plate Developer

    Joined:
    22nd Nov, 2010
    Messages:
    5,503
    Location:
    Perth, WA
    Nollamara, Westminster and Balga have a common standard block which is 728m2 with an 18.1 frontage. It's the cookie cutter size for the area and is ok for an R40 3 x 2 triplex with double garage.
     
  17. Chomp

    Chomp Member

    Joined:
    29th Apr, 2007
    Messages:
    540
    Location:
    WA
    Just repeating what I was told by someone with 25yrs experience in the business, I am not experienced in this field.

    I went for a 728 and was told go for 750 if I could.

    Once it settles and floor plans are done I will put them up, see what you think.
     
  18. MTR

    MTR Bling Bling

    Joined:
    24th Feb, 2007
    Messages:
    7,683
    Media:
    32
    Location:
    My World
    yes, standard block is 728 for the area. I would also include Nollamara at peak, prices too high for deve block, end value just does not stack up.
     
  19. westminster

    westminster P Plate Developer

    Joined:
    22nd Nov, 2010
    Messages:
    5,503
    Location:
    Perth, WA
    Bigger is always better :) Especially if you want to stand out from the cookie cutters :D
    My Westminster block is a corner with 809 sqm - so I had oodles of room to play with.
     
  20. la0

    la0 Member

    Joined:
    12th Feb, 2014
    Messages:
    9
    Location:
    Perth, WA
    Thanks everyone. I had no idea that a block in Westminster would go for $550k plus! I haven't seen a lot sold so didn't really know what it might be worth. I appreciate the advice :)