Cloverdale WA Retain & Build

I've never really done any numbers on Cloverdale Belmont region...but I hear a lot about the area and the developments going on.

This is the first one I picked....for those familiar with the area how do you think it stacks up? Front house has good renovation potential.

https://www.realestate.com.au/prope...com.au/property-house-wa-cloverdale-125396866

 

Have a look at the suburb stats first. Days on market, average discount etc.

 

I have found that houses closer to the highway tend to sell for less so the lower end of the range could work. I have not looked at end values at that end of the suburb. You would have to look really hard at recent sales for end values for renovated houses and end values for new builds.

 

End values is where you will most likely come unstuck, most of the other costs are known.

I completed a retain and build in Cloverdale in 2015. some round numbers that might interest you.

Total costs 745k which incl the buy, the build and external renovations to outside of existing property as required by council, bank values on completion 980k so 31%+ roi. Rent $830pw.

But today's values 900-920k and rent is $780pw. Renovation potential still for existing property.

Although you should be able to get a bit cheaper build costs and maybe lower entry price but other costs are increasing like power dome etc.

Then you will have gst, tax and selling costs etc if you're wanting to sell.

With enough DD, there could be money to be made.

 

Keep in mind Lyndon that the front house will likely need a reno to bring it up to par with the new rear dwelling as a brand new dwelling behind an older dated one can effect the end val of the new dwelling.

You would have to chop of the carport as well. Nice sized piece of land at the back to work with though.

 

Some good responses here. Just to be clear, I'm not making a purchase. Just a hypothetical scenario.

 

Well then thats it then, no more advice for you

 

Decide on what you are hypothetically building out the back and see if you can find any comparable sales for that product in the locality. In this case it will need to be within a couple of blocks because prices increase closer to the schools and Belmont forum. For example, there are new units for sale on the corner of Arluyna and Wright St for $550k. In my opinion these are not comparable due to location and they also may be overpriced.

 

How does this one compare?

257 Fisher Street Cloverdale WA 6105 - House for Sale #125263994 - realestate.com.au

 

huh? you need to make the front house sexy in Perth for a retain n build? you could easily spend 10-20k on external facade

 

Yes you do, it is a state government requirement. Not 10-20k though, that's a bit OTT. It's just a facelift, not a remodel. 5k-8k is more realistic. That said, for mine I just painted with paint I found in the shed.