Corner Blocks X 3 (which is the best)

Yeah I'm with you on this one, it's a different beast to a normal retain and build, would require a lot more funds and you'd want to really be sure you could put 3 townhouses on it or the deal could get pretty skinny.

I'd also check with the requirements on the min setback of the front side of the house as it looks as though it is set pretty far back and you could possibly/want to bring it forward to increase your building area. Seeing that the neighbours house has a similar setback it may pose 'neighbourhood character' style objections even if setback requirements allow it. So you'd need to check with council.

 

talking abt corner blocks was looking at this one that was sold in clayton last year for 1.15 mil with permits and plans. it is around 690sqm. it is now up for sale the individual townhouses

Sold Price for 1 Alice Street Clayton Vic 3168
1 Alice Street, Clayton VIC 3168 - Townhouse For Sale - 2012573026

Assuming rough figures 1.15mil + (65K stamp duty ) + interest +construction (950K) + miscellanous (50K) = 2.25 mil. That would mean a near break even at 740K appox. To make anything decent selling would be 850K each (to achieve 300Kish before tax). On 2.25 mil approximate seems a bit. Thoughts?

 

Price of land for deve sites keep rising making it very difficult to source deals that stack up. This one is not attractive not enough fat in the deal

Also at this stage of the cycle I think higher end values also mean higher risk ie holding costs, selling, smaller pool of buyers and rents won't cover mortgage if you must hold.

be interested in what @bedeveloper thinks?

 

@melbournian do you happen to know how much they selling the townhouses for?

 

@Iamnumber5 I think possibly 800-900k though for townhouses for that size max land size would be 180sqm approx with that front setback. But for that amount I better off buy landed houses or villas closer to CBD

 

volume builder can move projects at $150k per project.. so definatly not crappy deal based on numbers posted above.

Permit approved sites don't have much fat in the deal!

or

you looking at inexperienced developer

or

Overseas developer with other motives than just making money on project.

 

@melbournian I think quite possible it sells a lot more than that price.
Xynergy markets a lot of properties in Asia at premium price. I happen to attend one of their seminar a year ago in 5 star hotel, and now I am on their contact list. In fact they just had another seminar last weekend marketing The Capitol South Yarra, I just can't be bothered to attend.

 

@Iamnumber5 are u suggesting 1 mil+ townhouses in clayton? - seems Iike there are much Lots ard the 650-800kish mark. U could buy landed property in murrumbeena or Carnegie for that price or buy a townhouse in glen Waverley.

 

@melbournian Not many options for foreigners, as they are limited to new properties. I guess that's what is driving the price of development site higher and higher.

 

went to corner 2 : stigmatised block (where the tenant committed suicide) - learned something today in melbourne "no one cared" if someone committed suicide or the obligations to let future buyers know about it. Around 100+ people turned up and 5 bidders ethnic wise asian builders (indian and chinese), builders (from their jackets) and plumbers all wanted to secure the block. what was quoted at 540K was now sold at 700K won by an indian bidder. it was really the perfect sub division block, you could throw a 260sqm double storey townhouse, even have the driveaway located in the correct spot

 

Interesting!!
Without knowing the suburb, would the buy price of 700k plus say to subdivide and build a double storey 240sqm townhouse leave much of a profit/equity at the end?