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 They've already started the subdivision process and whilst the application is now withdrawn, a number of outstanding questions we had have been answered and they've indicated they will supply us with surveys and plans to date.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

Greener Pastures


This property is 870m2 (approx) of subdividable land adjacent to a large public park and sporting ground, which no doubt will be attractive for both owner occupiers and investors. It does front a semi-busy road but is in an otherwise great location, being North/South facing, adjacent to the parkland, within a high quality suburb, handy to good schools, buses and great shopping/cafes, and it comes with minor views. In fact if it weren’t for the road it’d tick every single box people are after! The property currently contains a 2 storey brick house that maybe able to be retained with a vacant lot created beside it (the new lot might need to ‘dog leg’ around it slightly). This house is ugly, but has renovation potential including the ability to add an ensuite and a 4th bedroom. The numbers are borderline to a little shy of where we want them (they’re showing approximately $100k equity gain) but the combination of position, possible ability to retain the house, and a nearby super high land sale has us hitting the go button. It would also most definitely suit a land banker and/or owner occupier. The price indication is somewhere either side of $1m, though we think we need to be a little less, ideally sub $970k.

Beds Beds Beds


There’s bedrooms everywhere in this house, and yet it is the land underneath it that interests us most. On offer is a lowset early 90’s built brick veneer home that is huge. It features 5 bedrooms, 2 bathrooms, double lock up garage with workshop, 2 dining rooms and 2 living spaces. That’s a lot of house to fit on one level! It is currently rented for $540pw, which (subject to your loan) makes it cash neutral or even positive. But the best is yet to come. The property sits on 1040m2 of LR zoned land that can be subdivided in the future (house will need to be demolished). Whilst we are talking a buy price of $675k and end value of the land at $840k, the numbers after all costs are considered aren’t close to working and are only just better than break even. The property is in a quiet street though not far from the rear boundary is a busy road. It is an outer suburb but a good position never-the-less. This is a simple buy and hold for the future, OR fantastic for a family owner occupier. Buyers at $675k.

Positive


This is an interesting buy and hold prospect. On offer is a duplex pair on 500m2 (approx) in a quiet street of a quality suburb. It needs work, but after purchase and taking cosmetic renovations into account, the property should still be cash positive. This is only part of the equation though, because you are also buying not that far above land value, and it is the underlying land value that should allow for growth over time. You are getting the best of both worlds: a reasonable rent return plus location and land value for future growth. This one is best suited to a DIY renovator looking to hold. Buyers around $710k.

Smashed!


The seller of this off-market property has been smashed, at least that is the blunt way to put it. Initially things were looking rosy for them, with approval granted for 15 apartments at the height of developers getting away with over-the-top non-compliant approvals. Unfortunately the unit market had turned so it wasn’t feasible for him to develop, and as units were on the nose he was unable to on-sell the site. He was chasing $1.2 to $1.3m at the time. The approval has now lapsed, with and extension to the approval refused by council, which is a shame as the unit market is picking up now and the same approval certainly isn’t close to being possible to achieve again. So far he has copped a brutal tackle from a midsized forward but the big hit was still to come. Whilst all of this was happening, benefits associated with fronting an arterial road were taken away, council’s definition of height changed, car parking rates increased, required landscaping increased and allowable site cover came down. This site has been smashed! And if the hits weren’t big enough already, the site is vacant so there’s been no holding income since he purchased it in 2015! So, you may be asking yourself why we are considering it? We believe there is merit in this site and it starts with the seller acknowledging all of the above and setting a revised sale price of $1m. And secondly we’re considering a change of tact with 7 townhouses the proposed outcome. Units have become too difficult for this site due to the rule changes, but it hasn’t affected townhouses quite so much. This seller is retired and needs to move on. Buyers at $1m for a proposed equity gain of 21 to 24%.

 

Join our community

Community

Join Our Community

Keep up with the latest developments in the market for established properties in South East Queensland.

 
E-mail Address:
Full Name:
Postcode: