want a big development block????

[neeko]

well i have found the perfect block for anyone wanting to develop a massive townhouse development and most likely make a Fking killing while doing it.!

http://www.realestate.com.au/property-residential%20land-vic-frankston-200449199

your thinking oh frankston far out neeko not this crap! let me point out a few things.

*its a massive size 5738 sqm!!!! (res Zone 1)
*there was a tender in the council to build 33 brand new townhouses on it not too long ago but whoever owns it has decided to sell. (unsure why)
*you'd make a killing
*excellent location close to ABSOLUTELY EVERYTHING!
*great rental return townhouses would be fetching 350 p/w from what im gathering maybe more

yeah it cost 2.2Mil it has been on the market for a while so i reckon put in a 2 mil?? but hey if you build 33 townhouses on this block there's a good profit to be made here.

 

[Nash13]

These blocks are sometimes left undeveloped for a reason... Eg. There may be an issue around access, flooding, drainage, contamination?? I wonder why the previous owner didn't obtain the permit then on sell as a development block!

 

[neeko]

i highly doubt contamination, flooding no. or he maybe just holding onto it.

if history serves me correctly if you something as rare as this you can ask pretty much anything...

and also he probably didnt have the cash to fund the development. dont assume anything is what im saying.

 

[Truly Exotic]

^^ Has been on the market from at least 09, on and off, not sure whats holding it back

 

[mystery]

Maybe the vendors have done the numbers and will make enough by just selling the land without the hassle of developing. A 33 Unit development would certainly bring some headaches.

yeah it cost 2.2Mil it has been on the market for a while so i reckon put in a 2 mil?? but hey if you build 33 townhouses on this block there's a good profit to be made here.

I'd be coming in a lot lower than $2 million .... As TE said above, it's been on the market since 09, .... you can always come up in price, but more difficult to reduce your offer once presented and still be taken seriously.

Mystery

 

[Ideo]

There was a similar site in Lake Macquarie a couple of years back.

Was an ex-petrol station and needed huge amounts of decontamination which made it a largely futile exercise to develop.

Just do due diligence on it and get all the information you can would be my advice.

 

[Jake D]

Can you search minutes from local govt. to see if they have been discussing previous development applications?

 

[Aaron_C]

Whether you are building in Frankston or Toorak the building costs tend to be similar yet the price you yield is worlds apart. I am not surprised nothing has happened.

 

[Scott No Mates]

Based on those rough numbers it appears to stack up on an npv and irr on the back of an envelope feaso but don't hold me to that.

But I'd do proper dd before jumping in.

 

[SWS]

Did some quick research ...

175 McMahons Road, Frankston Vic 3199

Sold February 2007 for $1.320M

Relisted 4/12/12 for $2.20M

Looked up my Planning Alerts for the area and can't see anything for this particular address ... however there was one going back 3 years ago for 105 McMahons Road which sold in July 2009 for $2.75M and had an application for a 33 townhouse development.

 

[Scott No Mates]

July'09 the market was very hot, pre GFC & everything went soft from there.

Is there a current DA or has it lapsed?