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 They've already started the subdivision process and whilst the application is now withdrawn, a number of outstanding questions we had have been answered and they've indicated they will supply us with surveys and plans to date.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

Ten


This outer suburb property is a circa 600m2 corner lot within 200m walk of shops as well as train and buses, making it a likely candidate for a 2 lot subdivision. It is close to a busy road, so probably not as suitable for an owner occupier, however, the super handy location means it would ideally suit the construction of two rooming accommodation houses to hold. As is often the case with rooming houses, the equity gain isn’t huge, but the potential rental return from these 10 rooms sits at about 9% gross. Buyers low $600k should call Justin on 0410511535.

It's What's Underneath That Counts


Normally when buying a block of 5 units you’d expect the units themselves and their return to be the star attraction, but not here as it is what’s underneath that counts. These strata-titled units are sitting on over 800m2 of land that can be subdivided and should attract a sale price of $900-950k each, a total of $1.8 to $1.9m, which is far in excess of the proposed $1.6m buy price. Now don’t be mistaken, we can’t buy and do this immediately and make money because of the costs involved, but it should be possible to achieve around a 5.2% gross rent return, which will make the complex easy to hold for the medium term, at which stage we are knocking her down and creating the land! Buyers at $1.6m.

Working on It


We’ve just been told about this property that’s ready to hit the market, so we’ve got the inside running, which is good news when you consider it is a likely 2 lot subdivision. Surrounding sales definitely support their $900k+ expectations, however, we’ve got no evidence of what the end product will be worth, and what sales exist suggests we can’t use any that are any older than about 4 months. So, we’ve got a bit of work to do still in determining end values. Regardless, what we do like is the other sales around the area definitely support the ask, and they can’t be subdivided, so even if the numbers don’t stack up immediately, you are far better holding this with development potential than the other houses. Some of these sales may also be as knockdowns to build a single house. Our site is 730m2 approximately and due to the proximity to shops should be able to be subdivided. Buyers at low $900k.

Line Them All Up


This property has been for sale on and off over a period of time with an unrealistic price, however, whilst the price has never changed the market has, and finally it is worth a good look at. On offer is a post-war house situated on 4 lots totally over 1600m2 in a location that is highly sought after and demolition is often difficult, which makes this one all that more attractive. The suburb consistently achieves $2m to $3m house sales and this property is well positioned, being one of the better street, North-South orientated, flat and within a short walk of a new supermarket and local shops and walking distance to a large number of cafes, buses and trains. The plan is to demolish everything on site and build 4 upmarket homes across the 4 lots. Our numbers indicate approximately 20% equity gain, which when you consider there is no subdivision involved, no infrastructure charges payable, it is Class 1 construction and you can likely be in and out within about 12 months from settlement, is a good margin. Buyers at $3.8m should call Justin on 0410511535.

 

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