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 They've already started the subdivision process and whilst the application is now withdrawn, a number of outstanding questions we had have been answered and they've indicated they will supply us with surveys and plans to date.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

Park Yourself


This is an interesting one, suited to temporarily parking yourself before developing. It has pretty much all of the attributes we look for in a deal, it is just priced too high... but we have some thoughts around this. So what are these attributes? Two street frontages and a zone that allows for a 2 lot subdivision is a good start. An agent who appears to not realise it can be subdivided is another fantastic attribute, along with the fact it isn’t necessarily simple, which is a positive as we’d have a heap of competition if it was. It is in a cracking location that is mostly quiet, just down from a handful of cafes and where some great end values are achieved. It is also just across from parkland/sporting fields. To top it all off it appears to be a really good house that is full of character, has 3 bedrooms, 2 bathrooms, multiple living rooms (or perhaps convert to a 4th bedroom?), bonus spaces (we assume not legal height) underneath, a very large deck and a pool that tenants or owner occupiers will love. It is a house that many people would love to live in a would suit a family. We mentioned the price is too high, and it is to develop immediately, but the price isn’t that far over the top for what you are getting as a house, especially if you do convert it to a 4 bedroom property. The twist is that it appears likely you can demolish the oversized rear deck and pool and have space for a 300m2 vacant lot whilst retaining the rest of the house. Our numbers do not work for this, but as you are effectively buying a development site at a house price, it should suit someone to buy and rent or occupy. The location and market demand will get the numbers working eventually, but in the meantime you have a cracking house in a great location. We need to have a detailed conversation with the agent around price, but our hope is to buy it a fair way under the advertised price, the hope being that the asking price has knocked out a lot of potential buyers making it easier to buy than had they priced it right at the start. Buyers around $1.07m.

Go Big or Go Home!


This site should be suitable for 10 upmarket townhouses and is in a location achieving big prices, so we aren’t talking small numbers here. With a buy price of about $3m, total development costs just shy of $7.5m, end values averaging over $950k each and an equity gain of 28.5%, there’s nothing small about this! The site itself is a healthy 1900m2 (approx) and currently contains 3 lots and 2 houses. It is in a great location, being a quiet position in a popular suburb and walking distance to not one, not two but three separate groups of shops/cafes. Jump on your bike or the frequent and direct buses just 120m away and you get to another few groups of shops, a university, major shopping centre and any number of other amenities. You also sit just 5km as the crow flies from the CBD. The area is experience big demand and big prices for both units and townhouses at the moment, with no new brand new townhouses available for under $900k (as far as we can see) and quite a few sitting well North of $1m. Whilst our numbers show 28.5% equity gain, the way the market is right now it feels like that could increase pretty quickly.  Buyers at $3m.

Look to the Future


Great Scott!  Here’s an opportunity to set yourself up for the future as well as ease yourself into property investing. On offer is a duplex pair located on a 400m2 (approx) corner lot in a cracking location. When fully occupied it should bring in about 4.2% gross rent, which may not sound like a lot but is well above the suburb average of 2.8% gross for houses, you also have a twist in that it is also likely a future development site, and it is good in consideration of the inner-city location. Buyers at $700k.

This is Prime


This is a prime opportunity. On offer is a 685m2 (approx) block zoned LMR2/3 with no character controls but a character home that should renovate up a treat (we have not inspected internally) if you chose to go down this route. It also sits on 2 lots so offers the chance to demolish and build two new houses, subject to access constraints and growth to improve the numbers for this option. Our preferred development option, however, is for 4 townhouses, making the most of a likely opportunity to build to three storeys over half of the site. This option is showing just over 24% equity gain on a purchase of $1m.

 

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