A Change In Circumstance

This couple had every intention fo carrying out this subdivision and renovating, but their circumstances have changed. With a bub on the way and no time now to renovate, they're cutting their losses and moving on. Their loss is your gain! They've already started the subdivision process and whilst the application is now withdrawn, a number of outstanding questions we had have been answered and they've indicated they will supply us with surveys and plans to date. They are not property people, want to move on with their lives, and they want to do so quick smart, hence the asking price that is actually less than they bought the site for. The subdivision will be via an Impact Assessable application, but all signs point to a positive outcome (to be verified during a conditional period). Here is a rare opportunity to retain an existing house (after minor modifications) and create a vacant block of land for about $150k equity gain. The very inner city location also makes it suitable as a simple buy and hold or owner-occupier situation. We've run numbers at full ask of $760k, though in reality we might need to be a touch higher. 

This property is in a super-quiet street, which is quite remarkable in itself as it is a very inner-city location, just 2.5kms as the crow flies from the heart of the CBD but just 1km from the edge. Local shops are a 300m walk, or 350m if you chose to go to a different group of shops. Bus is just 350m walk as well and due to the location they are very frequent. A 650m walk gets you to a whole new world, complete with supermarket, cafes, lifestyle amenities and educational facilities. In short, the location is very convenient and ideal for long term hold in addition to the short turnaround option available.

The site currently contains a little QLDer home featuring 2 beds, 1 bath and a nice large rear deck and a front verandah that has come to embody the QLDer style. The kitchen is a 90's (at a guess) laminate so very functional but dated. The bathroom will need to be rebuilt as part of the development. An opportunity exists to create a third bedroom, the result being a small living room, but with a separate dining, large rear deck and a location full of small worker's cottages, the outcome is very attractive. 

The best bit is the ability to keep that house and create a vacant block of land beside it. Your application will be Impact Assessable as we are proposing a 230m2 (approx) lot, but from what we can tell it has council support. More work required during a conditional period.

There is evidence to support both the house on a small lot and the small vacant land, with our numbers indicating $150k equity gain at $760k buy (the asking price), however, we believe we need to be prepared to pay $770k in order to secure it. 

This is a good opportunity to land bank, owner occupier, invest or develop. Interested parties should call Justin on 0410511535.

Specifications

Proposed Offer:
$770k
Site Value:
$630k
Land Size:
505m2 approx
Dwelling:
2 bed QLDer 
Suburb Median Price:
Houses $785k
Units $395k
Source: www.realestate.com.au
August 2019

Latest Alerts

Give Me Land!


Give me land, lots of land! Over 4000m2 of it in fact! Or should we say give me house, lots of house? Because sitting on this land is essentially two houses in one, a lowset with 2-3 bedrooms and 1 bathroom, and a highset with 4 bedrooms, 2 bathrooms 2 living rooms and multiple other spaces. We’re analysing this site for subdivision, but with that much house and that much land it could also suit a land banker, perhaps to rent out or even live in (great if you own trucks/cars/caravans/boats). The property is located in Northern Brisbane in a quiet street. It is actually a rear lot with a wide access easement and initial workings indicate we can likely achieve 6 x 600m2+ lots out of it (with house demolished), subject to further advice. With land at a premium and very little available (there’s only 3 available in the whole suburb and all are vastly different to this), this also has the prospect of good growth moving forward. The 6 lot option in showing about 20% equity gain. Buyers at or just over $2m.

Green


This block of 4 solid and well kept units is in a very enviable position, being a quiet street and backing onto hectares of green space. The suburb is very popular and contains many houses worth well over $2m and some over $3m. They are showing a gross rent return of approximately 4% with leases expiring in 2022, but we actually believe they are under rented and the return could be improved to about 4.4 to 4.5% gross as leases expire and you are able to increase them. But the return is only part of the story. The units sit on 570m2 (approx) of land and due to the position, we believe this land is worth almost as much as the buy price. It is hard to imagine, but within a few years knocking down 4 units to replace them with a single house will be justifiable. Next door, we are reliably informed, has just sold off-market for just under $1.7m. It is 713m2 with a reasonable house, but we are led to believe the buyer wants to knock it down and replace it with a palatial home. This certainly gives us confidence in the location! The plan here is to buy, receive an ok rent return and sit on it. And with a buy price of $1.53m, you are getting 4 units and decent rent, not bad when you compare it to the sale next door!

Double Vision


This property comes with spectacular suburban views from land level, and great city views (and even better suburban views) from a proposed second level. It also comes with an opportunity to double up on these views, with the site being approved for a two lot subdivision, allowing you to build two high end houses to capture the majestic outlook. Each lot will be in excess of 500m2, allowing you to tap into the hot market chasing new homes on larger lots. We believe new houses will be worth around $2.3m each, with our numbers indicating 20% equity gain. Buyers at $1.55m but you need to be quick as they are already sitting on multiple offers.

Problem Solver


It is a difficult market in which to buy, and one issue is the straightforward sites are often selling for well over what is justifiable to us. On the flipside, our clients are more experienced and together we have access to an experienced team so we can tackle the sites that may be slightly problematic. That spells opportunity, which brings me to today’s alert. This property is 1012m2 of CR1 zoned land with a 24m frontage in a good location that we’d like to subdivide into two lots. There are three issues to solve, all which I believe we have a good chance at solving, and it starts with demolition of the existing pre-war house. The result is just under $1.9m in costs to produce land worth around $2.1m total, on which houses could be built that are worth circa $2.3m. Buyers at about $1.55m.

 

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