Where to buy development sites for $350-400k in Melbourne???

[oc1]

One of the bigger risks in developing is realising a sale at a decent price. I would look into this factor too before buying another site. For example, Fawkner can be tough to sell, whereas Reservoir not so much. Each suburb then has pockets which are easier or harder to sell.

Cheers
Oscar

 

[2jzzzz]

Nearly bought a house in Laverton but fell through due to dodgy extensions. Was a two storey, 4 bedroom with large street frontage in arguably the best street in the suburb. Considered it due to zone one, larger block, council trying to beautify and due to my partner and I driving in either off peak or against peak. Cons are terrible demographic of people, low incomes, commission houses around. I only considered Laverton as we don't have kids and they are s few years away. Do figured give Laverton 5 years it might come good for families.

Just bought in Altona Meadows. Much, much better suburb in terms of demographic. I'm again in one of the best spots in the suburb. Newer house, similar block and still close to Laverton station. We do both drive so it isn't a huge concern, but do have visitors. We are hoping the ferry from Werribee to city happens and stops at Altona. Love how close it is to a very nice beach.

Cons are higher price, council is hobsons bay (think altona was somewhere else) and bit of extra driving to get to freeway.

 

[Hodge]

I agree, Laverton has terrible demographic of people but it was worse 10 years ago. I spend a lot of time in Laverton and would say the "shady" people that live there are bludgers and not hardcore criminals. I find them friendly and if you leave them alone they leave you alone. As rents / prices rise eventually they will move on.

Give it 5 - 10 years, but by then it will be too late.

 

[Aaron_C]

Hi Hodge - people have said the same thing about Dandenong and Footscray. Still awful areas....sometimes you can be too early.

 

[Hodge]

Hi Hodge - people have said the same thing about Dandenong and Footscray. Still awful areas....sometimes you can be too early.

That's very true. I'd rather be a little early than late and miss the boat.

 

[Mindmaster]

Interesting to see the mixed opinions on Laverton and Altona Meadows. I'd stick to the basics of property and focus on which area has better infrastructure, potential CG and gives the highest profit margin.

One of the bigger risks in developing is realising a sale at a decent price. I would look into this factor too before buying another site. For example, Fawkner can be tough to sell, whereas Reservoir not so much. Each suburb then has pockets which are easier or harder to sell.

Cheers
Oscar

Great point. How would you tell if it is hard to sell in an area? Look at the time a property is listed before being sold?

 

[jclegg]

Hi, I know it's a bit further out than you want but did you consider Ringwood area? Easy access to motorways, express train to Box Hill makes the trip to Heathmont/Ringwood quite fast (yes it's Zone 2) and the Eastland re-development will enhance the area further. Not sure what council is like for planning but you can pick up a decent sized block around $400K.

http://www.realestate.com.au/property-house-vic-heathmont-114521431

 

[MTR]

Hi All

We just secured this one today at auction, 4 unit site, excellent location, went toe to toe with a builder, builder actually secured it however there was a last minute twist, builder wanted 120 days settlement, we came back with 90 days and they took the offer.

http://www.realestate.com.au/property-house-vic-thomastown-114299387

We don't do auctions in Perth, found it exciting, even if it was only over the phone, Oscar got it over the, very happy with outcome.

OK, now its time to get plans and permits together, which Oscar will be progressing, thanks for the heads up and all the advice/help.


Cheers
MTR

 

[Hodge]

Hi All

We just secured this one today at auction, 4 unit site, excellent location, went toe to toe with a builder, builder actually secured it however there was a last minute twist, builder wanted 120 days settlement, we came back with 90 days and they took the offer.

http://www.realestate.com.au/property-house-vic-thomastown-114299387

We don't do auctions in Perth, found it exciting, even if it was only over the phone, Oscar got it over the, very happy with outcome.

OK, now its time to get plans and permits together, which Oscar will be progressing, thanks for the heads up and all the advice/help.


Cheers
MTR

congratulations on the purchase. How confident are you fitting 4 units on that block? How did you do your DD before purchasing?

 

[jacko18]

Well done are you going to devolop as soon as possible ?

would this be a good land bank,and devolop in say a year but get all the plans ,and so forth .

I'm correct saying thomastown and reservoir are quiet good locations
And they have Preston and northcote near them that are nicer suburbs

Congrats

 

[MTR]

Hi
Yes, these are bread and butter areas, nothing fancy, but this property will make the % (profit) required to make it work and the plan is to have two on the go pa.

Oscar will be organising plans and permits straight away, lets see what happens with Council etc.

DD, I have purchased in Melb before during the 2007/08 boom so I am familiar with certain areas. I did research this area and I also had lots of feedback from investors including Oscar who as I mentioned help source the property. Feasibility was conducted and had a look at various options/designs, will be building four 2 bedders double storey.

Six months ago it was easier to source development sites things are changing, I started looking at Melb because its very difficult to source suitable sites in Perth, hopefully the Melb market will not go crazy just yet so I can secure more properties.

At the moment I will be developing 3 unit site in Perth and when plans and permits are approved in Melb will be doing the same once finance etc is sorted.


MTR

 

[jacko18]

You going to keep any of these units,In thomastown or the perth project ?

Could you of got this with 5% deposit in auction ?

What is rent like in thomastown?

so will it be close to a Year before permits ,settlement and construction start ?

 

[Peter Parker]

I reckon people on that side rely on cars more. They drive and park at the nearest train station.

This is quite true.

The southern half of Laverton is an easy walk to the station.

Northern Altona Meadows is geographically near the station but the freeway gets in the way. You need to either go over a footbridge or under an overpass, neither of which are pleasant (particularly when coming home at this time of year).

Laverton is the last station in Zone 1. As a result it attracts people from further out who park there. This can cause pressure on parking spots unless you start work early.

Altona Meadows does have a reasonable bus service to Laverton Station on weekdays though (every 20 min). Also it has a handy shopping centre good for all daily needs (Central Square) whereas Laverton's is a ghost town and Aviation Rd lacks a reasonable supermarket.

Blocks of land seem smaller (on average) in Altona Meadows than much of Laverton (particularly north of the line) where they are bigger.

 

[jacko18]

Is reservoir further then thomastown,there next to each other I think, i used to live out that way long time ago

This is weird block could this work is it reasonable price for area

Are most going buy auction.
http://m.realestate.com.au/property-house-vic-reservoir-114434823

Don't now if link worked ,first time tried on mobile .

 

[oc1]

Interesting to see the mixed opinions on Laverton and Altona Meadows. I'd stick to the basics of property and focus on which area has better infrastructure, potential CG and gives the highest profit margin.
Great point. How would you tell if it is hard to sell in an area? Look at the time a property is listed before being sold?

That's one thing to look at. Look also at discounting, whether there is demand for particular types of dwellings. Also don't overlook the design of dwellings in demand. What I mean by that is, do buyers prefer large dwellings or smaller ones, if building double stories do you need the master downstairs etc etc.

 

[MTR]

You going to keep any of these units,In thomastown or the perth project ?

Could you of got this with 5% deposit in auction ?

What is rent like in thomastown?

so will it be close to a Year before permits ,settlement and construction start ?

10% deposit is required.

Oscar organising this, I am confident this will be fine for a number of reasons

Not sure how many I will sell and hold, its a numbers game, creating income streams and it will also be dependent on what is happening in the market at the time of completion, whether we see it rise which may be likely due to the IR drops. Cashflow/rental income will cover the holds so I do have choices.

MTR

 

[starter]

10% deposit is required.

Oscar organising this, I am confident this will be fine for a number of reasons

Not sure how many I will sell and hold, its a numbers game, creating income streams and it will also be dependent on what is happening in the market at the time of completion, whether we see it rise which may be likely due to the IR drops. Cashflow/rental income will cover the holds so I do have choices.

MTR

Can you give some rough estimate of your feasibility numbers on this project?

 

[jacko18]

10% deposit is required.

Oscar organising this, I am confident this will be fine for a number of reasons

Not sure how many I will sell and hold, its a numbers game, creating income streams and it will also be dependent on what is happening in the market at the time of completion, whether we see it rise which may be likely due to the IR drops. Cashflow/rental income will cover the holds so I do have choices.

MTR

What do you think stratedgy of doing 2 or 3 devolopment, in good areas then doing devolopment from then on to pay down debt,to satisfied

Would this be good strategy ?

 

[Aaron_C]

What do you think stratedgy of doing 2 or 3 devolopment, in good areas then doing devolopment from then on to pay down debt,to satisfied

Would this be good strategy ?

It's what people do all the time and seems to work.

 

[MTR]

Can you give some rough estimate of your feasibility numbers on this project?

Hard to determine until designs are finalised, however on preliminary feasibility total build including land will be just over $1M and currently looking at around 23-24%. I paid $428,000 for the land.

As I mentioned sticking to the bread and butter areas, also I prefer to go in at a lower base, feels more comfortable and also during the build less holding costs.

Obviously the profits are bigger if you go for the higher end properties but then the risk is also higher