Desktop Duplex Development

@Soul asked few questions via PM. I decided to answer here.. Hope he/she doesn't mind.


What is the land size?
Site Area = 315 sqm
Allowed FSR = 70% = 220 sqm
Build area = Lower floor + Upper floor = (46+53)*2 = 206 sqm
Garage + Alfresco + Patio + Balcony = (21.5 + 10.2+1.4+1.4)*2= 69 sqm

Are they duplex or strata titled units?
I'm planning to keep them. So I thought why spend money on strata title now and also pay two set of council & water fees.
There are benefits in making it strata such as higher valuation or ability to sell one villa. @Be Developer or @Leo2413 might be able to share their thoughts on this.

What were your reasons of investing in Clarkson?
I did not specifically building there for the ‘location’. WA is still trending downwards. However,
- Numbers are working ok
- Part of my ‘diversification’ strategy
- Builders aren't busy in this area
- Developable vacant lots are vanishing between Clarkson & Perth
- About 30 mins travel to the CBD
- Walking distance to Train
- Schools and shopping are nearby
- best of all, @Westminster is there to manage it!


Where are the main Industrial / nodal centers in Northern suburbs of Perth?
I don’t have enough knowledge to answer this question.

Are they double homes or single storey homes?
Both units are double storey. You need to maximise the area you got

How much times it takes to travel to the city in Peak hours via car?
30 min without traffic. Maybe add 5-10 mins more during peak? Peak traffic is a relative term

Available land for development around the area?
I have already touched on this. Not much left between Perth and Clarkson. After next boom, this area will be a ‘brown field’.

Is it a middle class area with less public housing or low socio economic area which is being gentrified?
These are new areas for middle class. Don’t know if/where they will have public housing.
Practically all developments are houses. Hopefully these duplexes will give a cheaper alternative to tenants.

 

Was actually talking to my expert on this the other day. Its not clear cut but some basics facts.

If you don't strata title, the valuation will still be more than just 1 dwelling but wont be as much as two separate dwellings. How much less is not known (I wouldn't risk it). Generally most people want to strata title so they can maximise their valuation and also ability to sell separately therefore greater flexibility.

 

Yeah...need to add a little more than 5-10 mins on for peak in Perth, especially to somewhere which is actually past the end of the freeway (for now)

 

Joondalup and Osborne Park are in the north and mid north respectively and are basically satellite CBD's with shopping centres, commercial/industrial employment hubs and train stations.

 

@devank ,

It really depends on Total cost of subdivision and contributions (City of Wanneroo should be below $3-$5K).

I didn't have a chance to read thru whole thread, but seems like you are planing to keep it and extract equity for future plans.

In that case, you most likely better off subdividing it on completion and have it re-valued, re-titled and re-financed (That alone is time consuming process) . That is the one way to get higher/favorable valuation (depends on half dozen other things as well).

Either way, your broker/banker can run numbers based on your Total $$$$$$ profit based on ACTUAL valuations. if you have setup correct ownership structure, it would be wise to consult your accountant as well.

 

@devank You can also subdivide it during the construction process to save time, rather than wait till the end, which is what I am doing.

 

In this instance he won't be able to as there is a tiny amount of common area (the stairs coming off the road) so it will be Built Strata which is done after construction.

 

Great thread.

Did you have any trouble getting approvals for 2 on 315m2?

 

Why would he? Whatever the zoning allows for the area is what's applied for.

 

Only because it is in a new estate, I would have thought the developer might be at minimum yield.

 

The block has a certain zoning that allows for that. Can do anything you like as long as you comply with that

 

I get this. I don't really know why the developer didn't go for the additional lots, but it probably has to do with the fact that they would have been too small for general market acceptance as empty lots.

 

The block might have been too small to split into 2 green title blocks but could work as strata lots because of common property.

 

It is one of the few new estates where there is no single dwelling covenant.
Plus these are end/corner blocks so they are larger then the min sized blocks next to them. Between each of these end blocks there is a row of 7.5m x 30m blocks. The end blocks are 10-12m x 30m.
The developer did actually envisage the possibility of duplexes on these lots and provided 2 sewer connections in the master plan to facilitate this.
It's quite a progressively designed piece of town planning.

 

It is actually big enough to go into green title but due to the way that have built the steps up from the footpath this one will be Built Strata. There have been some released which are at road level and will be able to be Green, Survey or Built Strata.
The blocks are R60 so they just need to be 2 x 150sqm or 300sqm to meet the requirements.

 

Oh yes. I forgot to mention this earlier. Westminster saved me some money by finding the lot with 2 sewer connections.

 

Can you please send her over to me when your done

 

haha... there is a selfish reason why I didn't start this thread earlier

 

You can't hog her!

 

Here is another update thanks to Westminster's pics..

Upper walls are going up now. Front view & rear view are attached.

I'm actually amazed how fast they are building!