Corinda, Brisbane

Discussion in 'Development' started by iinvestor, 11th Mar, 2017.

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  1. iinvestor

    iinvestor Active Member

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    Hi,

    I have a 809m2 subdivided property in Corinda. The house is on the Oxley road. The current property is rented for $380. In the current market,how much can the property be listed for? Ideal for a developer wanting to build two properties and sell.
     
  2. Bran

    Bran Well-Known Member

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    No-one is going to be able to tell you that
     
  3. ORAC

    ORAC Well-Known Member

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    To answer the question, you need to consider the answers to the following questions:
    1. When you say "subdivided property" - do you mean a "splitter block" (the 809 sqm lot is already on 2 titles of 405 sqm each), or the property is capable of being subdivided into two lots (currently one title, one lot)?
    2. Is there a house on the lot?, Is it a pre-1946 house subject to Traditional Building Character control?. If so, can it be demolished or can the property be slid over to occupy one of the lots - would means it would need to be about 8 m wide? Depending on the house, there is the potential to free up one or both lots, otherwise may not be able to be subdivided.
    3. What are the prices of similar 405 sqm lots going for? You mentioned Oxley Rd, so it sounds like a busy road and hence value might be impacted?
    However, assuming the existing house could be removed/demolished, and you could provide two lots, then to work out what you could sell for, then - Sales price of each lot x 2 less $70K - $100K for subdivision/separation (incl. acquisition, demolition, services, council charges if subdiv, holding costs etc) less developers profit (10% - 20%, for this type, it's more towards the 10% end than the 20% end), then that would be the sale price you could sell the house for.

    So for example, if each lot would sell for $400K, then total sales would be $800K less say $100K subdivision costs less $100K developers gross profit, then value of the property would be $600K.
     
  4. iinvestor

    iinvestor Active Member

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    Hi,

    thank you for your prompt rely. The property is already subdivided, so in 2 blocks but under 1 title. Not sure about the age of the property, but going by the sold history, it was first sold in 1984. So, it can be removed ( i think).

    the address of the property is 773 Oxley Road, Corinda. If you have any tools to gather the age of the property, please let me know.

    So, to sell the house as it, I was trying to work out what it can be sold for? If i was going to demolish the existing house and sell the land separately, what cost am i looking at?


     
  5. ORAC

    ORAC Well-Known Member

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    So looking on Brisbane City Council interactive maps, and also doing a property enquiry on PDonline. See map link below, Search for the property, and on the left hand side, will see a selection for "Aerial". This is one of the greatest tools BCC provides.
    City Plan 2014 Interactive Mapping

    It does appear to be on 2 titles (good), and the aerial photograph from 1946 doesn't show a house (good). The house does look like a Queenslander though, possibly moved there or built after 1946, and the area does have character overlay. However, on first impressions, looks like it might be possible to demolish the house (or remove it, preferred) and separate the title. Best to check with a Town Planner first, e.g. somebody like Craig Christie at ASI Planning | Here’s how to get your Development Approval Faster and Cheaper and with Certainty of Success | Town Planning Brisbane.

    If it can be done, then really you could do it yourself - demo the house, but as a Queenslander, you could get like Drake Removal homes to buy it off you (I'm not a fan of demo-ing Qlders, post-war house - no prob), separate the title for about $300 or so, and add services (sewer/water, about $15K or so). Town Planner can help through this process. But first, talk to some local agents to see what each block could sell for to calculate if it is worth it or not.
     
  6. iinvestor

    iinvestor Active Member

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    Champion. this is exactly what i needed. I have emailed Drake Removal. Have you had any experience in selling or would you know how much i can sell the existing house for?

    I have attached some photos. If i can make some money to cover the cost of the services, it would be ideal.

     
  7. ORAC

    ORAC Well-Known Member

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    Unfortunately, I'm not in a position to provide such information. Best to get an opinion from them. Look at their website to see what they are selling, and be prepared for low values. Next best choice is offer the house for free to them or others to take it - saves on demo cost.
     
  8. ORAC

    ORAC Well-Known Member

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    Note you still need to check with a Town Planner and to remove/demolish, still need a building permit.
     
  9. iinvestor

    iinvestor Active Member

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    Ok I will look into that... Thank you so much for providing me with all this information. Much appreciated
     
  10. LJW

    LJW Well-Known Member

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    I am a town planner in Brisbane. The house doesn't look pre-1946 so i'd say it was built on the site in the 1950s (rather than built pre-1946 relocated to the site). At any rate, the site is not located within the Traditional Building Character Overlay (or the pre-1911 overlay, heritage overlay etc) so it can be demolished without TP approval (even if it were pre-1946).

    Just needs BA to demolish. The house is fibro (potentially asbestos) so I don't think anyone would be interested in buying (but you never know).

    Other than that, +1 to what ORAC has already said.

    Demolish house (or get it moved off-site), organise new sewer/water connection through QUU (assuming site only has 1 sewer/water connection) and separate the titles.

    You may want to check the CGT/gst implications of demolishing house and selling lots separately. If it's your PPOR, you may be better off selling as is and letting the new buyer organise the demo/new connections etc.

    Cheers
    Liam
     
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  11. Tifoso

    Tifoso Well-Known Member

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    If I am reading your OP correctly you are asking how much you should list the property for? I reckon a good start would be looking at the reasonable number of other small development sites on Oxley road in the area. See if you can weasel an RP Data report or research using onthehouse etc to see what and when they sold for. There is no shortage of recent sales evidence! Demo can vary quite significantly between demo companies (I've had quotes up to 5k difference so make sure you get a few). It may cost more for this site as you may need traffic control etc given the general volume of traffic. No DA required for demo (under the assumption its not Traditional Building Character or "Demo Controlled"), only BA - somewhere around 600-800 depending on the mob you use.

    Depending on how quick you want to sell this property (and how much you expect to make), and possibly most importantly how much effort you want to put in, I'd consider listing it as a development site. IMO - splitters are selling like hotcakes at the moment, - you'll get a crapload more interest than if you split yourself and try to sell the blocks. You may be able to stitch up someone up for dev site for similar money than what you'd make if you did all the work yourself and sold the land.

    Definitely consider tax position as well. If (as LJW said) it's your PPOR, it's possible you'll avoid no tax, whereas if you split, you may end up paying tax on at least one of the blocks.

    Either way, I'd consider selling privately. It's either a dev site or a block of land, not difficult to sell. You'll get plenty of interest from builders like your OJ Pippins etc either way!

    Good luck with it!

    Cheers!
     
  12. ORAC

    ORAC Well-Known Member

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    Thanks for the comment and clarification @LJW. The overlays are tricky stuff and definitely needed a Town Planner to comment. @iinvestor just saved themselves a few dollars. Overall, consider that it's a very straight forward and do-able deal. Good one!
     
  13. JDP1

    JDP1 Well-Known Member

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    Watch out for flooding in corinda. Else its a great area. Will boom in the years to come...provided...Brisbane generates some employment growth, which going by current figures may take a while.
     
  14. iinvestor

    iinvestor Active Member

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    Awesome, thank you so much for your time and efforts @WilliamB and @ORAC. Hassle free job would be to try and sell it to a developer. Have written to OJ Pippins, no reply as yet. Going by the market in Corinda, things have'nt picked up as expected. Have a nice day.


     
  15. ORAC

    ORAC Well-Known Member

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    Hi @iinvestor, when you say "try and sell to a developer", do you mean:
    1. You want to sell the current property as-is to a developer / builder so they can do the split, do the demolition, put in the services, get the land, and build on it, or
    2. You are the developer who will demolish the house, do the split, add the services and then sell the lot to a house builder, the house builder (e.g. OJ Pippin) will construct the house and sell the house with the land. (Often they won't buy the land, but have a 2 part contract for the buyer to buy the land from you plus a contract to build the house).
    The reason for the question / clarification, is that some house-builders will want to take on the development job, others just want to access and have available the lots.

    Personally, I think you could do it yourself, if you need like a property developer project manager who would charge you a management fee, there's ones that could be recommended to help you, but looking at recent sales prices of 405 sqm lots in Corinda, I reckon there could be $150K profit in the deal, say each lot sold for $375K, less your purchase price, purchase costs, demo / services, holding costs.

    I mean you own the property, you should use best endeavours to take the profit! Perhaps PM me for further information.
     

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