WA Build in Dianella?

Hello friends

IT guy here, with no real experience or literacy in this stuff - hence I’ve started listening to the property couch podcast.

Anyway - I have a property in Dianella that I own 50/50 with my brother that we are now demolishing. We will end up with two rectangular green titles of about 350 sq metres.

i live in Melbourne and I’m now wondering which way I should go based on a RENTVESTING path I want to go down.

Should I build a rental property on my new block in Dianella ? There’s a lot of factors that I’m reading should help me make an educated decision - eg rental status of the suburb, current and upcoming projects, schools etc, growth and yield - how it compares with other suburbs.

Is there a website than can tell me all this info in one shot?

also, if I was to build- what should I build?

Or do I sell the property and invest elsewhere.

your thoughts and advice is most appreciated

 

Welcome to the forum!
Dianella is a great suburb but very large so what works for one part, might not for another. It appeals to families and downsizers but both have different needs so will want different things in their builds.
You'll need to look at end values for both single storey and double storey and then the costs of each and decide which way you want to go
For some suburb demographics you might want to check Dianella - Free Property Report

 

There is a huge demand for vacant land at the moment in Perth, pretty much flying out the door. Dianella is good as close proximity to Perth
Government grants are a huge incentive

Do the numbers? This will determine which way you may want to go

Also on a side note, far less risk on selling green title blocks, especially if you dont reside in Perth. Builders atm are very busy in Perth and build costs are going up

 

"You'll need to look at end values for both single storey and double storey and then the costs of each and decide which way you want to go"

Hey thanks for your reply - what do u mean my end values? a majority of properties in that area are single storey. Doesn't mean to say i can't build up - but wouldn't a 3 x 2 be a good sweet spot for both families or downsizers?

 

Thank you for that feedback ! Good food for thought. But not sure I want to just sell it off without a significant ROI.

 

Sorry if that was vague. End values are what the finished product would be worth once you finish building. So check sold listings and see how much things are worth and then check rental listings and see how much things rent for. Even though you plan to rent it out you want to make sure you don't over capitalise on it, ie build something you can't sell for a profit if your situation changes.

Some of Dianella has city views so people do tend to build double storey but a lot of it can go either way.

Yes you can hedge your bets with a single storey 3 x 2. The only people you won't capture is a larger family but they would tend to want a larger block of land anyway.

 

I assume you mean there is more money in building after selling ???

Do you want to share numbers?

Personally I would not be building double storey townhouses in this market unless you have city views. Its higher risk imo, with fewer buyers in this price point

 

North or South of Morley Drive is probably a big factor. You can have either City or Mirrabooka views

 

Dianella is a mixed burb, if you can get good coin for your land I say exit.

 

Take the money and run imo

 

side issue

This was interesting and some investor going to make a killing. This West Leederville block was picked up for just over $1M
Blocks in West Leederville, 300 sqm sell for $750-770k each

https://www.realestate.com.au/property/31-tate-st-west-leederville-wa-6007

I love these deals

 

Hey guys thanks for all the feedback - it's much appreciated.

That's the specs of the proposed block. I'm trying to understand why you're advising to sell as opposed to build and rent with the hopes of capital growth, and lowering my taxable income (given I'm in the upper most bracket).... Guess I should just work with my accountant / financial adviser?

 

https://bit.ly/30o1OcI

 

The main risk with double storey is that it sometimes it doesn't give any ROI. For example that block can suit single or double storey. Single storey might cost $250k and be worth $650k and double storey could cost $350k and be worth $750k and take 6mths extra to build. So you're spending an extra $100k with $1 spent for $1 return and 6mths extra holding income. This is a common issue but not guaranteed an issue for your block - only by doing a feasibility will you know if it will be.

Personally if your intention when buying the block was to build and that is where the profit is and works to your strategy then build, rent and ride the growth.

 

Our advice is general in nature, we don't know how much you paid, location or your circumstances.

The block is large enough with a good enough frontage to handle single storey if that's where the figures lead to. I've been trying to design a single storey design on 8.5m wide today - now that is not easy!

 

Accountant has nothing to do with market conditions, product and are just bean counters

Easiest way to lose money is not understanding your market and who your buyers are

 

Having seen how quickly Melbourne has gone to crap possibly thanks to one security guard. I would be selling and cutting my losses.

 

Really? That's incredibly alarmist. This guy might have bought the property for a song 15 years ago, inherited it, got a great bargain or simply wanted to enter Perth market and have a long term investment.

 

I'd say the fact Melbourne and possible soon Sydney is going to crap would be all the more reason to keep it as people will put their money in other cities/states.

 

this is currently happening in Perth. My re agent said investors from East buying up