Retain and build development blocks

T

Tulamalula

I am looking for a potential development block (along with everyone else:) in Brisbane or Perth. I know I will buy premium price for this in already zoned areas, so I'm looking future potential rezoning - eg Eden Hill, Lockridge, Beckenham, Leeming (??? haven't investigated down that way as yet).

I would prefer to buy something with a fairly decent house at the front, and do a battle axe subdivision and build a 2 storey at the back.

What I am finding is that the houses are set back quite far from the street and I can't see how one can squeeze another house behind the existing one.

here is an example http://www.realestate.com.au/property-house-wa-eden+hill-115335987

I am reticent to go to the expense of knocking down a front house unless it is really decrepit, but if it's too awful then it won't be rentable. I can't develop straight away so holding costs on a property that house too horrible a house on it will be much higher.

Can anyone suggest exactly how much land one needs behind a house to build another house (not a unit)

Also, are there specific areas anyone knows of where the houses aren't set back so far from the street, the space in front of the existing house is a waste of land in my opinion.

Thanks
 
Tulamalula said:
I am looking for a potential development block (along with everyone else:) in Brisbane or Perth. I know I will buy premium price for this in already zoned areas, so I'm looking future potential rezoning - eg Eden Hill, Lockridge, Beckenham, Leeming (??? haven't investigated down that way as yet).
Click to expand...

IMO, Beckenham has gone.

http://reiwa.com.au/Buy/Pages/More-...1&listingid=10409130&listingno=3410925&puid=0

http://reiwa.com.au/Buy/Pages/More-...1&listingid=10402492&listingno=3404282&puid=0
 
just got that hardey rd one in my inbox, and nearly choked at the price. My ambitions are a little smaller, 7-8 units is too much for me - yeah I think beckenham has gone too

also looking at brisbane, it is going off too!
 
BTW I went past the Kew Street one yesterday, three planes flew overhead in less around 5 minutes, big jets, very noisy, put me right off that area. At least the one in Beckenham is $550K compared to $800K in Cloverdale/Belmont.
 
Tulamalula said:
I am looking for a potential development block (along with everyone else:) in Brisbane or Perth. I know I will buy premium price for this in already zoned areas, so I'm looking future potential rezoning - eg Eden Hill, Lockridge, Beckenham, Leeming (??? haven't investigated down that way as yet).

I would prefer to buy something with a fairly decent house at the front, and do a battle axe subdivision and build a 2 storey at the back.

What I am finding is that the houses are set back quite far from the street and I can't see how one can squeeze another house behind the existing one.

here is an example http://www.realestate.com.au/property-house-wa-eden+hill-115335987

I am reticent to go to the expense of knocking down a front house unless it is really decrepit, but if it's too awful then it won't be rentable. I can't develop straight away so holding costs on a property that house too horrible a house on it will be much higher.

Can anyone suggest exactly how much land one needs behind a house to build another house (not a unit)

Also, are there specific areas anyone knows of where the houses aren't set back so far from the street, the space in front of the existing house is a waste of land in my opinion.

Thanks
Click to expand...

How much land you need for a rear block depends on the zoning R code of the area.

The front setback of the original house is also determined by the Rcodes with R20 blocks being at least 6m setback. Generally you would fence that in and it becomes the garden for the front house so that the rear house can begin 1m away.

Don't build a 2 storey unless it is a really nice area. You can build a decent single storey 4 bedroom house on many blocks which are 300 or so.

I believe JustLearning has done some simple retain and builds in I think Thornlie or Gosnells. Areas built before the 80s tend to have smaller more compact houses which translate well to retain and builds.
 
Thanks Westminster, you'd subdivide off into strata survey or green title?

If you get the right place, like that one above in Beckenham, is it better to build 2 units rather than one house - in terms of profit to self?
 
Tulamalula said:
Thanks Westminster, you'd subdivide off into strata survey or green title?

If you get the right place, like that one above in Beckenham, is it better to build 2 units rather than one house - in terms of profit to self?
Click to expand...

2 schools of thought
1. Use grouped dwelling rules so that the rear block doesn't have to be as large as a true green title battle axe block. To do this the front garage/carport needs to run off the access leg to the rear so that there is common property.
2. Green title and true battle axe where the rear block owns the whole access leg and you out in a separate driveway for the front house. It can be more expensive and more lands required.

It is usually best to get the maximum you can out of the block BUT sometimes there are times when doing less creates more profit so you have to run the scenarios.
 
Tulamalula said:
BTW I went past the Kew Street one yesterday, three planes flew overhead in less around 5 minutes, big jets, very noisy, put me right off that area.
Click to expand...

Tell me about it. I live nearby and the sound of the jets taking off is quite loud.

Becks at $550k is better value pending inspection to ensure the houses are sound. There is a lot of development in the area and the new units seem to be selling well.
 
Three virgin jets went over, then this little plane that made such a racket!

I like the Becks one on William Street, am going to inquire about it. Its been on the market for a few weeks now so its either gone or there's something wrong with it.
 
Tulamalula said:
Three virgin jets went over, then this little plane that made such a racket!

I like the Becks one on William Street, am going to inquire about it. Its been on the market for a few weeks now so its either gone or there's something wrong with it.
Click to expand...

Curious as well why its still in market. Few weeks ago went to see other sites near there and all were under offer right after home open.
 
Tulamalula

i'm currently in the process of building 3 units in beckenham, although the property was bought many years ago, i think it wise to pull down the existing dwelling. most houses in the rezoned area are 1940's, 1950s and hence the value you pay now is mainly land value. if you happen to buy something thats r35 then you'd definitely want to go triplex as most blocks are 960sqm however if you land something in r25 then you'd need to re-assess your options.

cheers
Jerry
 
So I assume financially if you spend the money to pull the front house down, and build three units, you'd get more in rent for a third unit than for a reno'd 50's house?

Westminster, that is the most yellow house I have ever seen, what were they thinking?!
 
Tulamalula said:
So I assume financially if you spend the money to pull the front house down, and build three units, you'd get more in rent for a third unit than for a reno'd 50's house?
Click to expand...
you'd get 50% more rent, additional equity generated from the 3rd unit and it will provide more options to build the 3 units as opposed to leaving an old house on the block. not withstanding the fact that all 3 new units will look pretty good together.
 
Last edited:
My idea was to develop in 2 stages. Stage one: fix up the old house and build at the very back of the block, leaving room at the front for an additional two units. Rent it all out and hold for a while. Stage two: knock down the old front house and build two units.

There are too many issues to list with this strategy and that was contingent on price estimates for building one + two as opposed to three at once.
 
Thanks Jerry, I need to buy something rentable as I am not in a position to develop immediately and holding costs will be steep. But I wouldn't want to fix the existing house unless its unsound, no point in spending money on something you're going to eventually knock down. If I could get something for around 500-600K which rents for $400 week my numbers work. Now where is this property??!!
 
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