Knockdown & build PPOR + what for value?

Discussion in 'Development' started by ZenSapphire, 22nd Oct, 2019.

Join Australia's most dynamic and respected property investment community
  1. ZenSapphire

    ZenSapphire Well-Known Member

    Joined:
    18th Oct, 2019
    Posts:
    57
    Location:
    Sydney
    Hi everyone,

    After some more research, one option we are seriously considering is to purchase a site in Hills district to knockdown and build. This is a brand new option that we have only started considering in the past 24 hours and I would be grateful for some quick guidance (land we are interested came onto market 5 days ago so hoping to make a quick offer).

    For more background, see here.

    Key questions after some quick research

    The offer

    A. What are the standard conditions I would attach? Would it be subject to feasibility study like soil inspections and such? I have also just now engaged a solicitor to review contract as there are some special conditions (property in present condition).

    B. What is typical market value for something like this? Is it simply look after last land valuation - say 50k for knockdown?

    The land inspection

    C. What do I need to look for? Do I need to even look at the house (agent said it is not liveable) or does it not matter since it's a knockdown?

    D. Does something like termites fix itself?

    E. How do I make sure we can build on it?
    1. Council has zoned as R3 with 9m height. No FSR specified?
    2. Land looks quite flat from street view.
    3. Orientation has garden facing North.
    4. There are some trees in backyard. I don't know what type and if council will let me remove?
    5. I can't see any covenants or easements, and will wait for solicitor. Anything else?
    What and when do we build to add value?

    F. We are buying to build PPOR. Immediate thought is to consider a duplex or battle axe or granny flat or a a 'manor house' as the land is >900m. Is budget the main consideration here?

    G. Leaning more towards just a PPOR with potential for future value add. Is it cost effective to go down this route?

    H. How does a manor house work? I don't think I understand. Is it like building 4 units on one block, living in one as PPOR and selling/renting the other 3?

    I. Would it make sense to build just the PPOR and granny flat later on? Or might as well build it all in one go?

    Thanks in advance for any guidance you might have. I have been madly researching over the past week. There's so much to learn!
     

PFA Property Expo is designed in a way that visitors can gather maximum real estate knowledge with added benefits. Different speakers will be presenting on different topics as where to buy, when to buy in this market...