~$600k house w/subdivision potential. West Melbourne?

Hi,

I am looking to buy an IP with SD potential for a 2x Town house development in 2-3 years time.

Have been following West Melb suburbs closely and threads on Werribee/Melton etc.

A colleague who has done a bit of development over the years suggested pockets around Point cook/ Altona - although they may be out of reach for land size at that price point? Additionally keen to know the lower priced suburbs that would welcome a 2 x town house property.

This will be my first foray into developing and would love to give this a proper go, I have a property in Brisbane and Sydney & would like to diversify at this point in time whilst ideally avoiding land tax during the hold period. I have also been tossing up in pockets of Newcastle (Tighes Hill, Mayfield & Warners Bay)

I have family that have lived in Altona & werribee - and although werribee gets a bad rap they had beautiful house/neighbourhood there - have actually got their house on the market...

https://www.facebook.com/video.php?v=1803011199914581

Looking for advice from experienced developers & Melbournites that could guide me into some potentials.. I'll come back with some DD for you to pressure test no doubt..

Thanks

 

Bump.. Any takers?!

 

If you're looking for a development site in or around altona in a decent pocket you really need to budget for $800k+. 3 years ago these were selling mid $500k.

 

Problem is any development sites which are worth developing have increased significantly pretty much anywhere in Melb, very hot.

 

I would read some of @sash posts I believe he is developing in this area??

 

Very true. All selling like hot cakes at the moment.

 

Thanks guys, felt a little stretching.. Will have a look at a few lower priced pockets and see what options are out there.

Could go a nicer area - Buy & hold + reno... Have the bug to buy/develop though : $

 

I bought a site 14 months ago in Werribee and am currently developing it into 2 townhouses.

That being said though I've had my eyes peeled for a second similar site in the area but prices have moved so much over the last 12 months that the figures no longer work. Buying in at today's prices and doing the same project would not leave enough profit/equity to be feasible..

However if you happy to by and hold, with a view to develop in the future, there is still opportunity.

 

I was hoping to find an IP with enough land to keep it there and add 2 townhouses in the subdivide block.

Definitely buy and hold would be thinking 2-3 year mark. Would also keep them for the next 2-3 years post build.

I have room to play and could move up to around $600k just not sure where would be best to filter down and do some DD on?

 

St albans, ardeer, kings park, maybe albion if youre lucky.

 

Thanks LMD - I'm tossing up whether I'm asking for too much at that price point and perphaps select another area and just do a $20-$30k reno on settlement... ?

 

Did u had a look at Norlane?
Still options to grab and u can hold as the current property will pay for itself. Options over the period of time are getting limited though.
It is now or never in melb.

Regards

 

Like the others have said, development blocks are hot properties atm. Anything on the west of melbourne closer in than sunshine and you will struggle find anything for 600k. Growth prospects do look fairly good though so dont be afraid to venture out but that is purely my opinion

full disclosure though - I do own in the west.

 

Thanks both, I'll use a BA to assist so hopefully should be achievable in the short term.

Budget will actually come to max of $550k

Open to Geelong pockets & Norlane - have also been keeping an eye on Seaford, Carrum downs. if I can hold using the existing site rental income that would be ideal & will need to consider the areas that a townhouse development would fit well into by that time.

Looking for 10-15% equity over the next 12 months with a small cosmetic reno if required