What would you do?

[Gruntus]

I have a block in the ipswich CBD with a good house currently rented at $370pw. It is 1187m and has subdivision approval as battleaxe, current house on 551m block at road, battleaxe is 636 with a shared easement. block slopes heavily to rear and council specify only a pole home built on. total frontage is 32m. there are still council and works costs of approx $40k to pay to complete subdivision.

Dont have much equity, just wondering what ideas people might have regarding this block.

finish division and sell rear block,
finish division and build on rear block.
get dual occupancy approval (council says ok) and build on rear block
do nothing and wait for zoning to allow units?

Ideally i'd like to be able to extract a deposit for another property. have current valuation of 420k and loan of 384k.

 

[Kit]

I wouldn't sell now! Myself, I'd go with the dual occupancy, build at the back. Things will be moving in the CBD in a year or so, the new courthouse complex will be finished, new building behind post office will be finished, hopefully the idiots who own the mall will start making changes (word is that Myer will be moving in but only in a few years time?). As far as units go, should be more demand in a few years. What is really needed is more units in the Ipswich CBD and a better train service (more express trains - about 35 mins express to Brisbane CBD I think).

 

[Rockstar]

You are in a great situation to add value but the problem is getting the finance. Have you costed the proposed building at rear? I would imagine it would cost around 200 - 250k to build. If the final product is worth 400k then there is some good money to be made. You need advice from a good broker/strategist to discuss finance strategy. Good luck