Paid $2m for a 696 sqm block in North Ryde, Sydney. http://news.domain.com.au/domain/re...the-sydney-property-boom-20150722-giidt8.html What do you Sydney developers think?
Unless Developer knows something that we don't (like any rezoning, or gold mine under the site.. both unlikely), this sort of purchase is done by wealthy overseas investors to land bank. however, it seems like case of overseas buyer dropped the ball with intention (not to discuss here) quick numbers $2 M to buy $100k stamp duty $50k Professional fee $750-$850K Duplex build cost (cheap construction) $150 k holding cost $3.15 M Total cost $600k developers profit (20%) $3.75M /2 =$1.87M for Duplex on busy road.. .it will be miracle
What types of zoning do you need to look out for in Sydney when looking for a site with potential? What are the indications to know when you can build single dwelling vs duplex vs townhouses vs units etc? How do you find out its current zoning?
Pay me Serious answer, check the Local Environmental Plan (LEP), either through the Council website or the legislation website. Many Councils are now doing online mapping so you can also overlay the Floor Space Ratio (FSR), minimum lot size, building height etc maps, or with some councils you can also use the state government planning portal website, although that is still at a Beta stage. Alternatively you can get a Section 149 certificate that shows the zoning and other planning matters (flooding, bushfire, heritage etc) from Council - circa $50, depending on Council. These are attached to the contract of sale.
I'm with BD on this one - Ryde will permit villas on 900m2 (unless something's changed), also requires wide frontage as well. Someone will be taking a bath and it is not the vendor. There are some time constraints as to how long an OS property owner can wait to commence development (it used to be a max of 12 months but that was unrealistic for commercial property owners who could be tied up for years with the L&E court).
Could be a situation where they own a number of other properties in the area and this was the final piece they needed. All just people who are destined to get a nasty shock when they expect a quick reno and flip to get them another 30%.
What do you think is the actual end val there? (Sorry I'm not familiar with that area). ie eating into dev margin
So 10% maybe. And maybe they're builders themselves so reduces costs a bit? Or maybe they already own neighboring blocks so have plans for something bigger? Sometimes there's more to the story than presented
It would become (closer to) viable if they already an adjoining block to achieve the minimum site area, they could push the equation with good design to achieve 5 lots on 1400 m2 (assuming next door is the same size). Assuming that they had paid the same for next door, each site would have cost $800k which is still 25-30% above what it would be truly viable (even as a builder). DT - tender margins are usually quite slim, around 5-7% so not much fat there.
This story was on the news tonight, might give some inexperienced people ideas to buy the first shack they see.
The funniest part of that article was that the developer just wanted to get his weekends back! So he paid a premium because he didn't want to put the hard yards in to find a good deal....massive FAIL! Lol But as previously mentioned, the developer could own the blocks next to there...in that case it's worth it but we will never know! Curious to know frontage? Maybe triplex development, childcare centre, aged care, boarding house if close to transport? I doubt they would just do a duplex unless they are planning to develop in 10 years...but those holding costs will be a killer! Maybe it was done in a partnership with a few people
Careful with reading too much into that Ryde article. The surrounding sites are also owned by the dev or his partners. Look at Castle Hill.. My mates house is in street. http://news.domain.com.au/domain/re...astle-hill-to-developers-20150723-giisln.html They are seeking $3m each. The block to the right of the image will all face the new railway and include commercial etc (Carrington Rd Castle Hill)...This block will be all 3-5 story resi apartments in the new LEP. Old crap houses worth $750K 2 years ago now worth $2m+. Then there is Mosley St Carlingford in the Post Office Rd precinct....http://www.google.com.au/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&cad=rja&uact=8&ved=0CDgQFjAEahUKEwjgltif4fLGAhWBMqYKHZHSAJs&url=http://www.thehills.nsw.gov.au/files/sharedassets/public/ecm-website-documents/page-documents/building/dcp/1-carlingford_precinct_public_domain_plan.pdf&ei=JaixVaDwHYHlmAWRpYPYCQ&usg=AFQjCNHRZioKOz3HQbMd8Kg9XoUjkmVTBg&sig2=qt2BnaNQ2mESF9yEAtx_rg $2m-$3m for larger sites. Many groups of residents selling up. You just don't want to be the one crammed between two devs due to greed. All the above areas have one thing coming. High density high rise. Hills Shire Council...Wont be a shire for long.
Yes, I saw that story this morning. Good on them for managing to get 20 neighbours onside. A lot of people who read that article would be plotting now and being extra nice to their neighbours.
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