Yokine Perth, Closest to the Pin !

Discussion in 'Caveat Emptor (Buyer Beware)' started by Chomp, 27th Feb, 2015.

  1. Chomp

    Chomp Member

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  2. boeman

    boeman Member

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    Should make a triplex.

    I presume 2 storey would be the way in Yokine? So perhaps $1.2m construction of 3 double storeys with Danmar or someone.

    Would need to sell for $900k each then to hit your 25% margin (very rough figures I am talking), and that is in a perfect world.

    What do singles sell for? $650-$700k?

    Would need decent spec being Yokine. Perhaps budget of $800k all in to get the 3 single storeys done turnkey. $1.9m plus holding costs. $2.1m sale is still pretty tight. That is barely over 10% in the deal?

    I am throwing these numbers off the top of my head here while I eat lunch, so take it with a grain of salt.
     
  3. sanj

    sanj Member

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    i havent done detailed yokine DD as i dont have any property in the area but i suspect you wouldnt want to pay more than 900-950/sqm MAX to justify the risk, assuming triplex flat site
     
  4. Chomp

    Chomp Member

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    I couldn't see it going for under 1 mil though, numbers would be tight. Better off going for a site that is median, less risk more potential buyers same margin.
     
  5. Jamie_

    Jamie_ #1 Procrastinator

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  6. westminster

    westminster P Plate Developer

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    There often isn't money in certain deals, which is why they remain on the market or they are bought by someone who thinks 10% is awesome.

    I think a nice 4 x 2 single storey triplex would cost around $750k and can have the upsides of less mortgage and less time.
     
  7. Blacky

    Blacky Member

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    These well built singles sell for around $600-$700k

    http://www.realestate.com.au/property-house-wa-yokine-114618735
    This as a Dev site sold for $820 a couple of years ago.


    http://properties.aussiehome.com/real-estate/for-sale/yokine/288917.aspx
    These would sell for $800-$850 in todays market.

    Note they are next door to each other - exact same blocks.

    Build costs for the singles I would guestimate at $300k each ($900k) turnkey.
    Build costs for the doubles about $400 each ($1.2).

    End vals $1.8-$2.1 for singles and $2.4-$2.55.

    So at a $900k purchase price you would be pushing to make 15% at best.

    hmm - not again thanks ;)

    Blacky
     
  8. MTR

    MTR Bling Bling

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    I think Yokine is a great area but building double storey townhouses would kill you in this area, land is too expensive.

    Also, the higher end product is harder to move in this area. So much choice???

    My builder just sold a single storey, new magnificent home for $980K in excellent location in Yokine and he said he made 20% and he is the builder so I don't like our chances of achieving this.
     
  9. boeman

    boeman Member

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    What size block is that on?

    My direct boss does a lot of similar deals but in blue chip suburbs. Buy, demolish and build for cost and sell. Always minimum 20% in the deal due to cheap build costs.

    Once I have the money I can hopefully do similar with my builders ticket (which is now registered building practitioner that sounds a bit w@nky). Instead it sits pretty on the wall.
     
  10. MTR

    MTR Bling Bling

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    430 sqm, split the block in the middle, built 2 homes, which I guess would call executive homes.
     
  11. perthguy

    perthguy Member

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    There are some very nice 2 storey houses on half blocks over the 1.4 million mark. They don't look cheap to build though. e.g.

    http://www.realestate.com.au/property-house-wa-yokine-118538659

    When you can get close to 1 million for single storey, it looks hard for an investor to make much on a 2 storey build.
     
  12. sanj

    sanj Member

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    $1.5m home being sold empty and with no staging whatsoever. What is wrong with people??
     
  13. MTR

    MTR Bling Bling

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    agree, silly really

    I would not want to be selling any property in Yokine at $1.5M in this market, its a hard one, you can buy in better areas on larger blocks, closer to city
     
  14. MTR

    MTR Bling Bling

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    Not the norm for single storey homes, the attraction in Yokine is the green title and high end product.


    Sold on day 1, cash offer
     
  15. Blacky

    Blacky Member

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    A fool and his money are quickly parted.

    I know - that is a gross assumption. I just fail to see Yokine as a $1.5mil prospect. For that money there are 100's of other areas that offer better value IMO.


    Blacky
     
  16. MTR

    MTR Bling Bling

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    Exactly
    You could buy fully renovated home on potential duplex block in Inglewood, then there is North Perth, then there is Mt Hawthorn which consistently provides demand and growth etc etc.
     
  17. Chomp

    Chomp Member

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    Sale Price: 1,050,000
    Sale Date: 12/03/15
    Area: 1014 m?
    Zoning: R30
    Purchaser: NOT AVAILABLE

    I was 50k out, not a bad effort ! that works out to be $1035.00 m2 btw
     
  18. Jamie_

    Jamie_ #1 Procrastinator

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    No surprise this is still for sale.
    1.49 -> 1.469 -> 1.439 over the past 6 months