Have looked at a property today which is only separated by the street and another row of houses to a 4 lane (2 each way) motorway (Logan Motorway Brisbane) the house is on 1020 m2 and the block can be split retaining the existing house and creating a new lot in the back yard. Being so close to the motorway how much does that effect values, say the asking price was 400k without the motorway noise what would be a fair reduction when the property is located so close if all else being equal?
If you have any comparable sales then that can give you an idea. Since it is a development potential site, I would be looking at how this fits into the feasibility. Lets say your feasibility shows a 25-30% return on TDC. If you factor in that a %age of the location affecting sale price and the numbers still stack up quite well then I would let that guide my decision. Sure, I would be trying to negotiate down the price due to the location but it depends on the competition and also on your projections of just how profitable the development is once completed. Do some research on recent sales for what you want to develop in inferior positions to get an idea for comparable sale prices of your development to work out if its financially feasible. Then let that guide your decision/negotiations. Sorry if it sounds messy..hope it helps.
Depends what one, are you talking about the m1 and Logan motorway? Closer the better, talk to a local pm or investor
Compare the street against other sales in the area further away. I would expect about a 10% difference (already factored into the price )
Dwellings that have development potential asking prices often don't only reflect the value of the dwelling as an IP but also the development potential. Of course the bank's valuers don't care about the real value when valuing the dwelling. This is where the investor sometimes will pay a 'premium', putting in more of their own equity if they recognise the overall real potential value of the deal.
