Hello - Doing Triplex in Perth WA

Discussion in 'Introductions' started by BuildWA, 28th Jun, 2020.

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  1. BuildWA

    BuildWA Member

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    Hey New to this chat group, and looking at doing a triplex on at 800sqm in the Nollamara area fairly soon, to take advantage of the WA Gov grants, and interested to learn from your experiences.
     
    BuildWA, 28th Jun, 2020
    #1
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  2. thatbum

    thatbum Well-Known Member

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    Welcome to the forums.

    My first thought was "are you sure its profitable?". All the rough numbers I've crunched there in Nollamara came up too low to be worthwhile for me.
     
    thatbum, 28th Jun, 2020
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  3. Shogun

    Shogun Well-Known Member

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    Nope. Have you seen what development units sell for in Nollamara. I drove down Nollamara Avenue recently looks like lots of others have already started,
     
    Shogun, 28th Jun, 2020
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  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Welcome

    I assume this wont have a subdiv until completion, so you may need deep equity or pockets or a 50 k LMI premium :( or use commercial Private funding, but either way if subdiv on completion, expect a 20 to 25 % haircut on the end vals.

    We have done a bunch of these and the smallest haircut was 18 the highest 28

    ta
    rolf
     
    Rolf Latham, 28th Jun, 2020
    #4
  5. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Welcome.
    here's hoping you bought the block years and years ago or got it for a steal and your feasibility is looking good.
    Who's your builder going to be?
     
    Westminster, 28th Jun, 2020
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  6. Shogun

    Shogun Well-Known Member

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    Shogun, 28th Jun, 2020
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  7. MTR

    MTR Well-Known Member

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    oversupply is never good when developing
     
    MTR, 28th Jun, 2020
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  8. MTR

    MTR Well-Known Member

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    Omg
     
    MTR, 28th Jun, 2020
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  9. BuildWA

    BuildWA Member

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    BuildWA, 28th Jun, 2020
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  10. BuildWA

    BuildWA Member

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    BuildWA, 28th Jun, 2020
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  11. Shogun

    Shogun Well-Known Member

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    and that is the problem with Nollamara, Westminster and Balga. It is 10 to 15km from CBD but all R40 and lots still undeveloped
     
    Shogun, 28th Jun, 2020
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  12. BuildWA

    BuildWA Member

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    Thinking of a long hold rental position, 5+ years. 10ks from city in the long run cant stay undervalued that long im assuming, im thinkin ittll follow same path as yokine in good time..
     
    BuildWA, 28th Jun, 2020
    #12
  13. Shogun

    Shogun Well-Known Member

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    A long term gamble?
    Prices now are no better than 2008
    I would do something different 2 2x4 on the block. Something different to others in area.
    City of Stirling has grand plans for area if they eventuate
     
    Shogun, 28th Jun, 2020
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  14. MTR

    MTR Well-Known Member

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    These areas have been overcooked. Problem its low entry for developers to buy land and too many jumped in. Last boom cycle 2013/14 developers were offloading stock that they could not sell in 2007. Now we have developers from 2013/14 stuck with this stock, this market went into free fall

    Its a market which is high risk
     
    MTR, 28th Jun, 2020
    #14
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