Hi guys, I am in predicament need some advice; Buying in Perth within 25min P1: cost 460k 950sqm 4x2 old brick house rental 480pw can be subdivided to up to 3 lots (Corner lot) P2: 385k 815 sqm 3x1 pretty old with rental income of 355pw, corner lot can be subdivide in to 2 lots P3: cost 340k 810sqm 3 x 1 no potential of subdivide at this stage, property is in good condition and rental 350pw For the time being this will be IP until maybe 2023 when I will either knock and subdivide or renovate and live in it. What would you go for? Why and do you think any of the properties are overpriced?
Nobody can guess as to property value v cost. If you have the financial capacity to subdivide and develop this is diffetrent to a buyer who expects to be at a high LVR who wont be capable of developing further
On face value, P1 but it's very hard as a lot of the benefits and numbers associated with the plan to subdivide can't really be ascertained through a single post. Whats the frontage like? The street and scape? Plenty more questions to be answered on this one. - Andrew
Frontage is 37m long and there are similar lots near by with similar size that already have been subdivided in to 3 lots.
On the information provided - the one that can't be subdivided. My reasoning is that the subdivision potential of the others would be priced in, and you don't seem to have done the full DD required on the subdivision potential. So I suspect its likely you're just paying more without knowing whether you're getting anything out of it.
i would be interested in properties that can be subdivided to add value down the track I would work on some numbers, what’s really important is what are the end values of the product. Build cost will remain the same Its a numbers game and researching Corner lot sounds interesting, especially if you can retain home, renovate and add value and sell off the land, or build and hold
Without anything particularly special about those properties, why wouldn't you go for suburbs that are better located and/or with better growth prospects?
Totally my idea and the plan that I was thinking about. The only issue here, is that WA Contracts only allows for consideration of structural damage to lower the price down, what if I found that the roof or termite has caused significant but non-structural damage at a cost of over 30,000 for instance! how do I bail out of this property in this case? Do I go back to the bank and say, look the property has damage of X cost and you may need to reconsider re-valuation which then will crash the contract due to the high cost on the property?
Craigie, Padbury, Coolbellup, South Lake, Hamilton Hill, Nollamara are all suburbs I would go to before Bennett Springs or Beechboro. Even Lockridge or Eden Hill really.
@AnasWestie - Can you post up details after you have purchased or the properties have sold (I understand you don't want anyone else stealing them from you). While P1 sounds good my hunch is P2 is the better deal. Its a hunch only since we have no details what so ever.
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