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Can You Help Me Work This Out Please

Discussion in 'Development' started by Olly, 4th Aug, 2016.

  1. Olly

    Olly Member

    Joined:
    2nd Jul, 2015
    Posts:
    13
    Location:
    Fairfield Heights, NSW
    I'm one of 6 properties that is likely to be rezoned to R4 High Density Residential.
    The 6 properties are 3 in a row in my street, and the corresponding 3 in a row behind us giving a total land size of 3840m2. It's a corner section so access can be from 3 sides.

    Height of building will be 13.5m which I'm assuming would suit a car park underneath and 3 units above. FSR is 1.25:1

    Can you tell me how many units could be built on this land if 3 of us agree to sell - the land would consist of 2 in a row and 1 behind another forming an "L" shape (land size 1920m2).

    The remaining 3 lots (forming the other "L" shape) are all owned by the one person who is difficult to deal with which is why I'm asking for both scenarios.

    Can you tell me how many units could be built on this land if we ALL agree to sell.

    We are currently all worth about $830k each. I've been told if we each sold separately we'd be looking at $1-1.5mill each and as the 3 in the "L" shape from $1.5-2.5mil each.

    Can you hazard a guess as to prices we're likely to get if all 6 of us sell.

    TIA
     
  2. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,374
    Location:
    Sydney
    Council ?

    Town planner advice would be ideal... They will know council and state attitude. What "can" be built in zone is not the same as what Council may or will approve. Surrounding density, setbacks, streetscape, traffic, public transport etc all come into play. We had a larger scale dev in our street knocked back endlessly as it technically complied but council considered street character and amenity deserved it to be located nearer to rail to comply with State DCP for NW rail. NSW Govt finally ended the developers dreams. (near but not close enough to NW Sydney near metro).

    Loads of people have fallen for this with the NW metro and get poker machine eyes to realise council wont allow twenty towers of 6 levels to be built. Or even 10. NSW Govt is the final approval BUT they consider council recommendation.

    A local agent will know more if they are into devs. They can make the dream a reality as they know who can help
     
  3. Olly

    Olly Member

    Joined:
    2nd Jul, 2015
    Posts:
    13
    Location:
    Fairfield Heights, NSW
    It's council that is proposing the rezoning and Planning has given the job to council to implement/manage it etc. Everything in my area is being knocked down and and duplexes or townhouses are replacing the old fibros. This has been happening for the past 10 years or so. Our "block" will definitely be OK'd for units. It's Fairfield Heights and we are less than a minutes walk to the shopping centre, doctors, restaurants etc.
     
  4. Tufan Chakir

    Tufan Chakir Well-Known Member

    Joined:
    18th Aug, 2016
    Posts:
    75
    Location:
    Victoria, Australia
    Get some independent advice from a professional planner - DON'T rely on what the OCuncil is telling you.
    Then talk to local agents to get a feel for value (maybe even pay a valuer to get a sworn valuation - that's also worthwhile sometimes.
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,558
    Location:
    Sydney or NSW or Australia
    Current FSR? say 0.5:1, new FSR is 1.25:1 which is an uplift of 1.5

    Current value $800k, new value circa $2m +/- 25%
     
  6. Olly

    Olly Member

    Joined:
    2nd Jul, 2015
    Posts:
    13
    Location:
    Fairfield Heights, NSW
    Is this value just me alone? (I hope). What do you think the value would be if all 6 sell together.

    My RE agent said, 1-1.5 for me alone, 2-2.5 if I was one of 3 blocks and maybe double that if all of us sold.
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,558
    Location:
    Sydney or NSW or Australia
    Each property (as a group) would be worth 2-2.5 times its individual lower zoned value depending upon whether the developer can maximize their utility of the site ie taking into consideration slope, boundary setbacks, extentof excavation required etc.
     
  8. MrFox

    MrFox Well-Known Member

    Joined:
    20th Aug, 2015
    Posts:
    139
    Location:
    Melbourne
    The bigger the land size does not mean you get more money if you are talking apartments. 3 blocks would be enough to build 3 story building with single level underground carpark. Approximately 35 to 40 apartments. If you have 6 blocks you will usually need to build 2 buildings which does not give you any advantage or higher price per m2 for land. Obviously L shape block will be very challenging to develop in to a apartment building.
    Good luck with the re-zoning of your land. I hope it happens for you.