Triplex block in Westminster, WA

Hi all

Looking at selling our 810 sqm block zoned R40 in Westminister.

Potentially could develop 3 units on this site. Has existing 3x1 brick veneer 1960s house in a liveable, rentable condition.

Agent has appraised value at around $560 000. I know the market is slow at the moment, but does this sound too low? I am seeing similar sized blocks, albeit corner blocks, with asking prices of around $650,000+.

Thanks in advance.
 
Corner blocks will get more but even though they are marketed at $650 are they achieving it? They might just be sitting around.

The price for yours will depend on
- location
- dimensions
- where the sewer line easements are
- neighbours

Get a few appraisals and see what other REAs think. Considering end values for a completed triplex I think no one will be rushing to pay over $600k.
 
DT : Just doing some due diligence :p

westminister : Thanks. We have gotten a few appraisals and they're all around the roughly the same...just wanted to check on here. Agree not sure if those blocks are actually selling for those prices.

Jamie : Just don't have the funds as we're working on another one right now. Ideally would love to keep it and develop later but unfortunately cannot.
 
I have noticed some development blocks or rear battleaxes are selling with plans.

Find a cheap designer and get some proposed plans drawn up. It helps the lesser-informed investor picture what could be done, and include ownership of plans in the sale price. Means they can shop the plans around with builders etc.

Might be a $5-$10k investment but could yield an extra $20-30k on sale price.

Personally think it is smart selling in the right situation.
 
I have noticed some development blocks or rear battleaxes are selling with plans.

Find a cheap designer and get some proposed plans drawn up. It helps the lesser-informed investor picture what could be done, and include ownership of plans in the sale price. Means they can shop the plans around with builders etc.

Might be a $5-$10k investment but could yield an extra $20-30k on sale price.

Personally think it is smart selling in the right situation.

i suspect in some cases the seller got plans done with full intention of developing but now that margins are rubbish theyre trying to sell the site with plans and hoping theyre still a fair few people out there who dont know what theyre doing.
 
i suspect in some cases the seller got plans done with full intention of developing but now that margins are rubbish theyre trying to sell the site with plans and hoping theyre still a fair few people out there who dont know what theyre doing.

Probably, but that is up to the buyer doing due diligence.

Whack R40 anywhere in the advert and you get hysteria in some cases, even if it is proposed.
 
Hello mugoftea,

All 5 of the Westmister Triplex R40 blocks that have recently sold (last 5 months - at a rate of 1 per month), have sold in a very narrow price range of $540k to $570k in last 5 months (160 days).
Link is https://www.dropbox.com/sh/ervpwbsiq1o9d7m/AAAP7LuZRVTTCeohcEnA7GpPa?dl=0

There are currently 8 R40 Triplex sites on the market in Westminster, with asking prices ranging from $549k to $579k.
Link is https://www.dropbox.com/sh/sqyk6vttizeg8b2/AAC04DLvas0xi3AblfHWGlRfa?dl=0

The corner site on offer for $650k + at 35 Mirrabooka Ave is a quad site, being a 887sqm R40 - so is not a compareable property to yours.

$560k is possibly generous, as a likely sale price, but is definately the maximum you could achieve on the market, given there are 8 other seller's trying to sell to the 1 per month buyer in Westminster.

If you intend to sell in the next month or so (and do not hold a belief the perth market is currently booming), If i was your agent, I'd suggest you put the property on for either, offers over $539k or a fixed price of no higher than $560k, preferably $559,000, to ensure when you hit the market for sale you look like or close to the best value on the market and any buyers currently circling will engage with your property and talk to your agent.

I trust this information helps.

Good luck

Paulie
 

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Probably, but that is up to the buyer doing due diligence.

Whack R40 anywhere in the advert and you get hysteria in some cases, even if it is proposed.

exactly the point, just like anywhere in the entire of City Of Joondalup and even City of Wanneroo, every is banking on being able to develop their block but when they are paying 500-600k for a block in Heathridge/Wanneroo, the end values aren't going to be any good
 
You can pay an architect a gazillion dollars to design the best building in the world on the site - no DA approval means they're not even worth the paper they're drawn on.
 
You can pay an architect a gazillion dollars to design the best building in the world on the site - no DA approval means they're not even worth the paper they're drawn on.

Average person isn't aware of such a thing though.

Plethora of folk out there thinking "R40" and a set of plans is an easy $250k profit.
 
Just don't have the funds as we're working on another one right now. Ideally would love to keep it and develop later but unfortunately cannot.

Is it serviceability or available equity/cash that is the issue.

I reguarly use a lender who will borrow against the end value as opposed to the inline value. This allows a no money down strategy in most cases. Depending on your circumstances you may even end up with some cashout on completion for the next deal.
 
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