Finding next dev IP with no buyers agent, what do I look for?

Discussion in 'Development' started by Hodgo, 9th Jun, 2016.

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  1. Perthguy

    Perthguy Well-Known Member

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    I agree. I have compared 4x2 townhouses with 4x2 single storey and the single storey price is definitely higher. Do you think that is because the single will have a larger land component though? For example, this townhouse sold for $545,000 with maybe 160sqm of land (estimated).

    reiwa.com - 7/22 Lapage Street, Belmont

    This is a single level house on a 776m2 block, which sold for $799,000. Definitely a much higher land component.

    reiwa.com - 26 Williamson Ave, Belmont

    I would have to do some more work but I suspect the land component is very important in the single level dwellings achieving higher prices.
     
  2. JohnPropChat

    JohnPropChat Well-Known Member

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    I mean, single level has a bit more margin. Less holding costs, less total project costs and also a bit more land component. Hard to make it work for stuff below 250 m2 I think.
     
  3. Brady

    Brady Well-Known Member

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    Without a doubt. These aren't even comparable IMO - valuers/banks wouldn't even consider these in the same boat.

    Different style of property with different target market IMO
     
  4. Perthguy

    Perthguy Well-Known Member

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    I agree they are not comparable. I need to find a single house with a smaller land component as an example. These are the types of comparisons that someone will need to make if they are considering developing. Do they buy a bigger R20 duplex block and build two single storey houses with a larger land component or buy a R40 block and build 3 or 4?

    The example I linked to earlier on Arlunya Avenue would accommodate 2 grouped dwellings. Nominally, the lot size for each dwelling would be roughly 430sqm.

    Further down the same street, the coding becomes R40, so at 145 Arlunya Avenue (946m2), in the R20/40 coding, you would be able to build 4 grouped dwellings with a nominal lot size of 236m2.

    Of course that doesn't take into account the driveway, which will reduce lot sizes further.

    I will see if I can find some examples but I'm pretty sure, with an equivalent level of finish, that the single story on ~430sqm will sell for more than the townhouse on ~236sqm. It makes sense because land is money so, all other things being equal, the house on the bigger block should sell for more.
     
  5. theperthurbanist

    theperthurbanist Well-Known Member

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    IntraMaps are great (just go to the LGA's website and look for 'Mapping' or similar) as is PlanWA which was just released/updated today.
     
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  6. Brady

    Brady Well-Known Member

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    Bit hard to just compare the townhouse on the smaller block v the single story or large block - yes the single story along might get a better value
    But what you really want to determine is the cost and end value - is it worth putting 3 two story town houses or 2 single story
     
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  7. Scaphella

    Scaphella Well-Known Member

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    Do any gurus here do paid feasibility reports...?:cool:
     
    Last edited: 24th Jul, 2017
  8. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Heron Todd White do valuations and property analysis for feasos.
     
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  9. MTR

    MTR Well-Known Member

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    Dave if you are still looking...contact Steve he will help you with most of this stuff.

    Most importantly ask him what his developers are building in Perth and are they making money and if so where?

    My understanding is some builders are doing OK in Perth market because their building costs are much lower, however many developers are getting hammered as the end values have dropped. I don't know for sure, but not much is making sense at the moment.

    I guess if you are holding and plan not to sell it wont matter, but I would not develop unless there was at least 25% in the game, otherwise what is the point, may as well just buy the end product at 25% discount and save yourself the time, risk and headache.
     
    Last edited: 24th Jul, 2017
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