Develop or Sell Block - Maitland/Tenambit area

Discussion in 'Development' started by WaterBottleLegs, 7th Feb, 2020.

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Develop or Sell Block?

  1. Develop!

    2 vote(s)
    66.7%
  2. Sell!

    1 vote(s)
    33.3%
  1. WaterBottleLegs

    WaterBottleLegs New Member

    Joined:
    7th Feb, 2020
    Posts:
    1
    Location:
    Maitland
    Hi,
    I own an old run down house on a decent sized block, the block is located very close to schools/shops & is in a decent part of town.
    Would be looking to flatten the block & build 3 townhouses if possible?
    Older houses on the same street go for $400k - $450k.
    The only new townhouse I can find in the area went for $525k, with another older smaller townhouse in a worse area going for $287k.

    Property width is roughly 17m so potentially could fit a driveway down the long end of the property to service 2-3 of the townhouses?

    The good:
    Block is 690sqm
    Directly across the road from 2 schools
    Shops on the same street about 1 minute walk away
    Bus stops directly out the front of the property

    The bad:
    House on the block needs to be demolished(asbestos removal)
    Full grown trees to be removed
    2 sheds would need to be removed
    Outhouse would need to be removed
    House is asbestos

    The house/property right now is entirely a burden & has no use or function.
    I'm just looking for some advice to know if this would even be feasible from someone with experience developing & if they think it could potentially be a good idea.
    I also understand I haven't done enough research into the numbers & will need to thoroughly figure out my risk involved if the project turns out to be worth pursuing.

    Thanks in advance for any replies/advice given on the topic.
     
  2. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    4,020
    Location:
    Perth, WA
    100% sell unless you have the appropriate skills and experience as a property developer.

    Developing for profit isn't something a person can just do just because they have a developable block of land imo.
     
  3. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    10,116
    Location:
    Brisbane
    Have you spoken with any agents to see what it would sell for "as is" compared to what it might be worth to a developer?

    And also, whether it is worth you getting the DA through before selling?
     
    Niche likes this.
  4. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    15,124
    Location:
    Sydney
    DA it for its best practical use (see a TP) and leave the property dilapidated with tenants and have it marketed as a DA approved site. This may avoid GST since its still residential premises and not all-but vacant land and also leaves the profit subject to 50% discount. Demo it and its costly and then GST applies and profit could be taxed in full.

    Leave all the developing to someone who knows. Once you get an initial opinion on use by a TP then speak to a local agent savvy with devs as they can access local devs who will snap it up. Then if its all good you can progress the DA etc