Development plans - Belmont Perth

hi,

I have a block of 850sqm, zoned R20/R40. It has a 1960 house sitting on it.
Located under Belmont town council, Perth.
The repairs is just going crazy to maintain,
So I had some thoughts to subdivide. A few questions which some champions out there can assist me with.

Q1. Is this a good time to start the development project given that the Perth house prices is down ?
Q2. If I were to build a triplex, ( one single and two doubles), is there a market for double storey in Belmont ? Or should I build all singles.
Q3. Should I approach builders directly or Should I use a builder broker which I read some of you are doing.?
Q4. What would be the normal specs for inevestment homes like this? Low, average or high ?
Q5. For the entire project to be profitable, what do you think the profit margin should be (roughly ) to make It worthwhile?
Anyone who has done subdivision in Belmont, Perth area can lend a hand ?


Cheers

 

End values are down and rents are down but building costs are also down. It could be a good time to develop.

If you want to know if there is demand for 2 storey, check recent sold properties for prices for single storey and double storey. I have found them difficult to compare because of the land component being different.

For specs, check listings of properties for rent. Go to home opens for rental properties and watch how renters react to the property. Also talk to leasing agents to find out what people expect.

For my development in Cloverdale I approached builders directly and picked on I like. But I have been doing plans for 18 months to give you some idea. Drafty then tenders would almost certainly be quicker

 

PG
Are the numbers stacking up for this development? I have not looked at Perth for 2 years now

MTR

 

Whats taking so long?

 

Yes. Build costs have dropped. Numbers are looking good for a build and hold.

Initially, loads of revisions. I think we got to revision 9 before going to planning. Now I have been sitting on the working drawings for a couple of months trying to work out the details such as:
* layout of the kitchen. Needed a few revisions
* in the bathroom, plinth or no plinth for the vanity, hob or hobless for the shower etc

At that level it would have useful to sit down with an experienced designer to have the discussion. I have been spending too much time on the reno project and not enough time on the plans for the townhouse.

 

PG if you want a bit of feedback on your plans I'd be happy to have a look and throw in my 2 cents.

 

Thanks PG -

further, any idea if I should use a builder broker ?

 

Have you built before or is this your first time?

 

Yes, built once with a project home builder on a single low set residential home.
Never done a triplex development before.
First time doing a subdivision.

 

Are you looking to hold or sell?
What street is the property on?

I have found Belmont council easy to deal with so if the project is pretty straight forward then you shouldn't have any problems there. They may require a fee for a 3 or more development.

A building broker is an option. I have used one in the past and it worked out well. Or you can research builders, pick one and get them to draw plans and go through council etc.

You will need to decide if building first ( build strata) or if you need to subdivide first to create equity to fund project.

First port of call would be to talk to a surveyor and get a property survey done to work off for drawings etc. Vision surveys are good and have used them several times.

Allow 4-6 months for the planning and approval side before you actually get to site so dont go kicking tenants out yet.

Lots of different paths you could take that lead to the same result.

Just remember Belmont is a pretty soft suburb atm sales and rental wise, so expect 2-4 weeks + vacancy to find tenants (current market) once completed. Could be a different story in 12-18 months once builds are completed.

Hope this helps.

 

Hi HD

You are awesome.
Lots of great advice.
Mine is Keymer st.

I planned to build first - build strata
You mention ......'subdivide first to create equity to fund project'..... how does this work ?
Subdivide with individual titles in hand to secure bank's confidence ? Is that what you meant ?

Cheers

 

Hd

I planned to sell 2 and keep one as IP

 

End values are low in this area. You might want to hold off a bit longer.

I would also talk to some real estate agents selling this type of property in the area to see if built strata or survey strata makes a difference.

For the design, you can always hire your own drafty to get the designs and list your required specifications. Then shop your plans and specs around to a number of builders yourself. A surveyor can manage the subdivision process for you from end to end. This will take time.

Otherwise, hire a building broker to manage the whole thing for you. It will save a lot of time. It depends on how involved you want to be.

 

Yes, but being council will require double story, it maybe hard to get their permission to subdivide without a caveat etc. Plus this way takes alot longer, usually this route only if you can't fund the build or want to sell vacant land to fund the build.