Potential to retain and build. Better price than some lately. Will need some investigating though...
http://www.realestate.com.au/property-house-wa-belmont-115862303
http://www.realestate.com.au/property-house-wa-belmont-115862303
Retain and build development blocks
- Thread starter Tulamalula
- Start date
I'm not sure if that would be the same but I enquired about a reasonably priced duplex block for sale in Eden Hill from Satterley about 9 months ago. It also had * conditions apply
The conditions were must be owner occupier with finance approval. First homebuyers get first preference.
thanks Perth guy, I am going to look at this one Sat. The same agent sends me listings several times a day none of them what i am after, yet this one i didn't get!!!
It has potential. My problem is that I am just finishing up a 4 month reno on a similar property. I got flashbacks looking at the photo. House looks solid though. I know mine has come up looking great.
Say I got the property for $600K, (not likely in that area), plus legals and stamp duty total purchase price would be around $620,000.
IO mortgage would be monthly $2521
rental income approx $400 week = $1,733 month
holding costs
= $788 month mortgage
= $200 month PM fees
= landlord insurance = no idea
= rates and water rates per year $3000 = $230 month
negatively geared at $1200 month
plus maintenance - unknown
we can easily afford the extra per month from one wage (MBroker says we can borrow up to $660 on hubby;s wage, I earn around $3000 month in small part-time business).
Future potential
Strategy: Retain and build 1-2 years
This is where I get stuck. Realistically what will it cost for DA, sewers, subdivision, build 2 x 2x2
and where would i get the money to do that as we will have maxed out the equity in our mortgage. There wouldn't be enough equity in this property for 5 years or more to borrow against it.
can someone help me here?
IO mortgage would be monthly $2521
rental income approx $400 week = $1,733 month
holding costs
= $788 month mortgage
= $200 month PM fees
= landlord insurance = no idea
= rates and water rates per year $3000 = $230 month
negatively geared at $1200 month
plus maintenance - unknown
we can easily afford the extra per month from one wage (MBroker says we can borrow up to $660 on hubby;s wage, I earn around $3000 month in small part-time business).
Future potential
Strategy: Retain and build 1-2 years
This is where I get stuck. Realistically what will it cost for DA, sewers, subdivision, build 2 x 2x2
and where would i get the money to do that as we will have maxed out the equity in our mortgage. There wouldn't be enough equity in this property for 5 years or more to borrow against it.
can someone help me here?
water & council rates will not be $3k per year it will be approx 1800-2000 a year.
what you could do is to subdivide and sell the existing dwelling to raise enough cash and release equity to develop the vacant block. but do your DD and rework the numbers...
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Can you make 2 x 2x2 work on R20? I would have thought a smaller R30 or R40 lot for 2x2's. On the Belmont block you would be looking at a min 3x2 at the back and retain the front in the interim.
That's my question too. We are a bit clueless when it comes to this bit? Anyway, here is my plan: pick up a retain and build in City of Belmont for max $600k with a rent potential of $450. Survey strata and build a new PPoR at the back. Move out of the current house and rent it out for maybe $440? In a few years, borrow enough to develop my other block using a) equity from my new PPoR and b) cashflow from the rent on the current house. I haven't run the numbers properly yet but I think that will work
Heres a bit of a guide and some rough numbers for retain and build.
You could subdivide the land first so you would be looking at 30kish survey strata or 40kish green title. Plus costs to upgrade retained house if council require and upgrade powerboard etc to comply.
You could then use equity in new block when titles issued to pay for build on rear lot. This takes a bit of time. 3 months for da then do the works and get it signed off then few more months for titles.
Or you could go built strata and do a da to subdivide and build at the same time. This is quicker process. Most cost can be included in build contract.
Then you will finance by value of property plus fixed price contract to build/subdivide. Depending on lender you could go 80-95% of this value and pay lmi. So you will need some equity or funds. Or if your lucky enough to get a valuer that will value as two seperate lots you might not have to put in any funds.
Upfront costs would be
1000 for survey
500-1000 for single house plans
500-1000 for built strata da
3kish for wapc da to subdivide.
Just some info from my researching the last year so may vary especially with different sites and services etc.
Hope this helps.
Cheers
You could subdivide the land first so you would be looking at 30kish survey strata or 40kish green title. Plus costs to upgrade retained house if council require and upgrade powerboard etc to comply.
You could then use equity in new block when titles issued to pay for build on rear lot. This takes a bit of time. 3 months for da then do the works and get it signed off then few more months for titles.
Or you could go built strata and do a da to subdivide and build at the same time. This is quicker process. Most cost can be included in build contract.
Then you will finance by value of property plus fixed price contract to build/subdivide. Depending on lender you could go 80-95% of this value and pay lmi. So you will need some equity or funds. Or if your lucky enough to get a valuer that will value as two seperate lots you might not have to put in any funds.
Upfront costs would be
1000 for survey
500-1000 for single house plans
500-1000 for built strata da
3kish for wapc da to subdivide.
Just some info from my researching the last year so may vary especially with different sites and services etc.
Hope this helps.
Cheers
That helps a lot, thanks. Perthguy, no I can't do this on a R20, this is a hypothetical for if the block was currently zoned appropriately. This area has rezoning coming through in the future. I've found another block with correct zoning, but it's a good bit more expensive, so I think I am going to have to settle on buying something with the hope of rezoning and sit on it rent it out until rezoning happens.
BTW I went past yesterday, it's a neat little house, nice area but next the FESA - not sure if fire trucks roar out of there or if it's just headquarters. Will go and view it today as there's a home open. With a bit of spit and polish i could get it up to $500 week rent, but at $600K it's a retty high price for a block that *may* be rezoned at some stage.
Belmont City Council doesn't seem to be keen on battle axe developments as they don't maximise the land. I could do a battle axe on this one if the back games room was removed, but I really have to see it first.
Belmont City Council doesn't seem to be keen on battle axe developments as they don't maximise the land. I could do a battle axe on this one if the back games room was removed, but I really have to see it first.
I think it's just a headquarters but you would definitely have to check what they do. Not sure about rezoning. CoB has just? reviewed their local planning strategy so the next review won't start for a couple of years. I'm not sure much has changed since the last review so my guess is they will skip rezoning for at least this round. I'm not sure where this block sits in relation to the proposed light rail to the airport. That might be a wildcard that could trigger a rezoning at some point. But really, you can assume that close to the city it will eventually get rezoned. Eventually can be long time when you are investing in real estate.
WAPC make the decisions on battleaxe so it doesn't matter that much what CoB likes
It's too far from light rail plans, doubt it will be rezoned. Totally off this place now. It doesn't even have good access to buses/Great Eastern highway, it's just not near anything, so I am looking elsewhere.
Option 1:
There is a property that's come up in Central Ave Redcliffe, that is on the plans to rezone - development are 6 - of course there's no price on the listing.
Option 2:
Also looking at a property already zoned for multiples close to Belmont forum, $699K rent for $470+ ... seeing that on Monday. So far we can only borrow up to $660K on our equity, out pocket is around $1400 month which we can afford, but unless I pull a swifty and apply for extra based on my business as well as hubby's income, and put in my last 2 years tax returns where I netted over 100K ... but business is scaled right down and nett earnings for 2014 will be around $20K if that.
Option 3:
A dump for $485K zoned R20 - on 809sqm - I could borrow enough to start redevelopment immediately, ie pull down the house, subdivide the block, sell one and develop the other but haven't done the numbers yet.
So, I'm back to looking in city of Swan, Lockridge, Eden Hill in area with proposed rezoning, and trying to get my head around what the plans are, CoS website is rubbish to navigate!!!
Option 1:
There is a property that's come up in Central Ave Redcliffe, that is on the plans to rezone - development are 6 - of course there's no price on the listing.
Option 2:
Also looking at a property already zoned for multiples close to Belmont forum, $699K rent for $470+ ... seeing that on Monday. So far we can only borrow up to $660K on our equity, out pocket is around $1400 month which we can afford, but unless I pull a swifty and apply for extra based on my business as well as hubby's income, and put in my last 2 years tax returns where I netted over 100K ... but business is scaled right down and nett earnings for 2014 will be around $20K if that.
Option 3:
A dump for $485K zoned R20 - on 809sqm - I could borrow enough to start redevelopment immediately, ie pull down the house, subdivide the block, sell one and develop the other but haven't done the numbers yet.
So, I'm back to looking in city of Swan, Lockridge, Eden Hill in area with proposed rezoning, and trying to get my head around what the plans are, CoS website is rubbish to navigate!!!
Eden Hill is town of Bassendean. Parts are already zoned R20/30 with proposed R40 zoning.
Thanks for that, but Lockridge is CoSwan - nothing available in either place
This 3x1 could be worth a look
http://www.realestate.com.au/property-house-wa-ashfield-115861863
http://www.realestate.com.au/property-house-wa-ashfield-115861863
not sure if the house is retainable http://www.realestate.com.au/property-house-wa-morley-115878723
For something random.... rent out for a while, demolish and build? http://www.realestate.com.au/property-house-wa-beckenham-115874139
For something random.... rent out for a while, demolish and build? http://www.realestate.com.au/property-house-wa-beckenham-115874139
The 3x1 could be great! I hate Expressions of Interest though
The Morely Drive one, not a fan of busy roads
Beckenham one, only 393sqm, so that has already been split off from something else, I want to be the splitter-offerer
Left a message about the Ashfield blocks, I suspect they will be way out of my price range.
Here's a potential - but only 688sqm - can u do duplex on that?
http://www.realestate.com.au/property-house-wa-embleton-115820811
Beckenham one, only 393sqm, so that has already been split off from something else, I want to be the splitter-offerer
Left a message about the Ashfield blocks, I suspect they will be way out of my price range.
Here's a potential - but only 688sqm - can u do duplex on that?
http://www.realestate.com.au/property-house-wa-embleton-115820811
Ashfield 3x1 - vendor wants high 5s-mid 600s. Going to do a drive by; also look at a dump in Dianella zoned R25.
