Gold Coast development - thoughts please

Hi all

have a development site in the GC (800sqm block) that allows 3 dwellings on site (not subdividable). There's an old but solid 2/3 bed fibro house at the front that is tucked almost/just enough to the side that I may be able to keep.

Block is quite narrow (14 m wide) so a side by side scenario is probably out of the question.

For those who've done this kind of thing before, would you:

1. knock down the house and build 3 uniform attached houses
2. keep the house at front and build 1 detached house at rear
3. keep the house at front and build 2 attached houses at rear
4. do nothing for now and wait (pray) for more relaxed zoning
5. roll the dice application cost wise and request and exemption from council to build a small block of units eg twelve 1 bedders. Unlikely for his to be approved even though there is a large block of units across the street and 2 doors down. Those 2 addresses had diff zoning though - go figure. But given I'm flanked either side by townhouses, am guessing the only thing the'd probably approve is 3 houses per the zoning specs.
6. any other ideas??

I'm leaning towards option 2 or 3 for the simple fact I think 4x3 (or more bathrooms) houses tend to always be in demand from renters - there's always more supply of 2 and 3 bedders in the area.

The front house aside, the land footprint I've got to build on is about 500sqm. Not sure if trying to squeeze two 4x4's on it is optimal from a build cost vs rent return perspective.

Also, what cost - site and build turnkey costs (excluding infrastructure costs) can I expect to pay per house? I've called around and they range from $250-500K each!

Appreciate your thoughts.

 

Look at rental yield of Duplex vs Triplex. Personally I would go with what supports cash flow vs debt outlay equation best.

 

Have you spoken with a Town Planner about this site? Is it 1 of the Southport LMR lots by any chance? If it is, you might find you can build more, which you might need to do to make the feaso stack up.

 

What is your end goal?
Sell or keep?
What is going to give you the best return?
If renting what will give best yield compared to cost?
If selling what will give you the best profit?

 

Also need to chat to a creative design team with town planning experience to ascertain the site max.

 

Even if you can keep the old fibro house, would it's position at the front on the development deter buyers?
Marg

 

Good point. A structural reno may be in order to recoup it's value once sub divided and to not stink out the new structures built.