Double Story investment - South Perth

Morning Investors,

I am considering a small Block 300qm in South Perth about 12km from city, building two storey 4b plus study/theatre room (one bedroom downstairs to consider ethnic tenants/buyers). Title is ready to go and land is flat.
Costs:
Land 220k
Building: 215-250k
Stpduty: 5k
Total costs:
low end 440 - high end 480k
Same second hand properties are going for about 480 to 530K (One storey)

My issue would be the smaller block. What are the tastes of Perth residents when it comes to two storey, I noticed around that area, most building are one storey, is there any rules, restrictions impeding the building of two storeys?

Share your thoughts, opinion and position/advice on this.

Westie/Junior Investor

 

I think your build costs are too low. A 4 bedroom house with 2 living areas (ie study/theatre) would be at a minimum 200sqm and probably more in the 220-250sqm range. Therefore it would cost around $325-375k at least to build fully finished.

Do you mean South Perth or a southern suburb of Perth as a 300sqm block in South Perth is unlikely to be that cheap and would be worth a lot more.

A 300sqm block can easily achieve a 4 x 2 single storey house which would be cheaper to construct. It is likely that 2 storeys is allowed but I don't think is required and would be too expensive if end values are only in the 480-530k range

 

Thanks for your reply you always provide great advice.

I meant southern Suburbs not South Perth per se.

350k for build plus other expenses will put the cost at about 580-600k almost!
In subrubs like Becknham and Thornlie that is too expensive wouldn't you think?

 

These numbers are way off

How do you buy land in South Perth for $220,000

Last time I looked more like $700,000-800,000 dependent on location

oops I just read your post not south perth

 

Work backwards

What are you trying to achieve??

What are the end values of this product in the area/s

 

haha, I want 10 pieces please, thanks.

 

Absolutely too much to spend in Thornlie/Beckenham and that is why everyone else is doing single storey because it is a lot cheaper and the block is large enough

 

Thank you guys

 

Damn I got excited when I saw 215k for double storey build

If only prices were this low