Developing in Perths flat market...

Discussion in 'Development' started by Matt Ad, 14th Jun, 2016.

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  1. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    23 Sexton Road Inglewood WA 6052 - House for Sale #122922834 - realestate.com.au

    I went and saw this yesterday at it's first home open - HEAPS of people there. I went to put in an offer this afternoon and it was already under offer.
    It's a very unique site in a Character Preservation Zone so I would have had quite a 'weak' offer with a subject to Due Diligence clause as my intentions would have been to demolish the house due to its non architectural or character qualities and build something sympathetic to the area.
    Oh wel!!
     
    Westminster, 20th Jun, 2016
    #61
  2. MTR

    MTR Well-Known Member

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    OMG, that is bargain basement price, surely something would work here? This is also ok location

    only concern is whether council will allow demolishing ? I know has no character, but it's all in the eye of the beholder, I have seen weird things happen with this council
     
    MTR, 20th Jun, 2016
    #62
  3. Matt Ad

    Matt Ad Well-Known Member

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    Wow! Already under offer
     
    Matt Ad, 20th Jun, 2016
    #63
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Absolutely which is why I wanted a due diligence clause.
    It was a baaaargain but I wasn't willing to risk the money if demolition wasn't on the cards as a possibility.
    I had 5 scenarios that would make money on the block
    1. commercial ground and apartments above
    2. townhouse triplex
    3. 6 x 1 bed townhouses
    4. Nice duplex
    5. Retain house and build in rear off side street
     
    Westminster, 20th Jun, 2016
    #64
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  5. mrdobalina

    mrdobalina Well-Known Member

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    there's more to life than working
    That's pretty rare for R80 in Inglewood!
     
    mrdobalina, 20th Jun, 2016
    #65
  6. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    It's same size, dimensions and zoning as my Highgate block so I had a head start on options and pricing.

    Ah well. There were plenty of young couples there looking for affordable housing options and I'm sure they snapped it up.
     
    Westminster, 20th Jun, 2016
    #66
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  7. Jamie_

    Jamie_ Well-Known Member

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    Few of you may remember this site from 12 months ago, many said they wouldn't touch it due to being on Hale road, ex housing commision etc.
    Sold Price for 96 Hale Road Wembley Downs WA 6019

    Well the owners who bought it 6 months ago have now finished with the subdivision and put the blocks up.
    Lot 1 96 Hale Road Wembley Downs WA 6019 - Residential Land for Sale #201526662 - realestate.com.au
    If they get what their asking, and it seems quite likely for street fronted blocks then they will do quite well.
     
    Jamie_, 20th Jun, 2016
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  8. MTR

    MTR Well-Known Member

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    it's out of area agent, someone snared a bargain
     
    MTR, 20th Jun, 2016
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  9. MTR

    MTR Well-Known Member

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    very hard to say, main roads limit your market big time and in a depressed market risky IMO.

    If they don't get any bites over next 6 weeks then its over priced for this market.

    Time will tell,
     
    MTR, 20th Jun, 2016
    #69
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  10. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Westminster, 20th Jun, 2016
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  11. mrdobalina

    mrdobalina Well-Known Member

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    They've been trying to sell those apartments since May 2015. Obviously they have had no luck, so they put the whole complex on the market???? Crazy.

    Even crazier for having a poorly thought out exit strategy before they went ahead with the development.
     
    mrdobalina, 20th Jun, 2016
    #71
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  12. MTR

    MTR Well-Known Member

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    suicide
     
    MTR, 20th Jun, 2016
    #72
  13. Big Daddy

    Big Daddy Well-Known Member

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    What went wrong? It's not in the best place in Morley and runs along a busy road and there are no other apartments anywhere in that vicinity. Its located in a small pocket of Morley with high density zoning.

    How much would they profit?

    740k purchase price= 770k after stamps
    180k build cost each: 1.8M
    Holding Costs: 150k?
    Selling Fees: 1% of 3m = 300k
    Sell Price: 3.15M?

    Profit = 150k?
     
    Last edited: 20th Jun, 2016
    Big Daddy, 20th Jun, 2016
    #73
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  14. LifesGood

    LifesGood Well-Known Member

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    image.png

    Styling at its finest
     
    LifesGood, 21st Jun, 2016
    #74
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  15. Perthguy

    Perthguy Well-Known Member

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    It's interesting in Perth's dead market when everyone is saying don't buy... opportunities are still cropping up now and then. My mate was after this one too. Not sure if he got it. We might catch up tomorrow and I will find out. I liked it. Big reno though :p
     
    Perthguy, 21st Jun, 2016
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  16. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Never say never :) There always will be some gem in the rough.
    It was a rabbit warren of a house complete with an outside toilet and laundry but the location was so excellent and the price a bargain for anyone wanting the worst house on the street.
     
    Westminster, 21st Jun, 2016
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  17. Aaron Sice

    Aaron Sice Well-Known Member

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    dafuq did I just see?

    You're right @Westminster - you can't stage a house like this. I mean, use Super-A-Mart furniture all you like, but using a galvanising colour scheme....? Amateurs.
     
    Aaron Sice, 21st Jun, 2016
    #77
  18. mrdobalina

    mrdobalina Well-Known Member

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    If they are selling all 10 as a whole, they must be desperate. I might low ball them with a $2.5m offer :D
     
    mrdobalina, 21st Jun, 2016
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  19. Blacky

    Blacky Well-Known Member

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    I was thinking a $1.8mil offer. So if youre at $2.5 you might be in with the best shot :p
     
    Blacky, 21st Jun, 2016
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  20. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Westminster, 21st Jun, 2016
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