Looking for Duplex Site around Maroubra

Hi All
I am currently looking for a duplex site in Maroubra, NSW (South East Sydney) to develop. Any leads for potential sellers or agents that work in this space would be much appreciated

 

You'll need a couple of million for the land and it will be fierce competition. A project like that..you'll need more than 1mil in equity to even get started and super duper serviceability . I haven't posted the details yet but i will be doing a JV duplex developement with my dad in North Bondi, but the land was bought like 30+ years ago for like 200k. Today a site like that with an old house will be between 3.5 to 4.5m.

If you can bypass the competition by letter drop or going straight to the owner then you got a better chance for good profit returns. But many developers in the area will give you a run for your money and they are cutthroat

 

@Leo2413 thanks for commenting. You're right, it's a high price to pay for entry in these areas at the moment. I guess each property. Weds it's Feasibility completed before proceeding.

Sounds like your Bondi development is a good one! I live locally and would love to see the progress of it once it kicks off!! Let me know how it goes?

 

Maybe you could look at recently approved dual occ from the Rankwick Council website, contact those owners, and offer to purchase their site? Would save you time having to get your own DA & associated risks, and if you don't like the plans, a S96 is always easier than a whole new DA.

 

Whoops 'I guess each property. Weds it's Feasibility completed before proceeding. '
Was meant to read "I guess each property needs it's Feasibility completed.."

 

Yeah well if you got the equity and it suits your risk profile and goals dude, then why not go for it

Yep this one we are planning to do in Bondi has basically 2 options and its really a no brainer.

Option 1: Sell the old home bought for 200k 30+ years ago and now a recent sale on same street is 4.3m.
Option 2: Demolish, subdivide and build 2 high end duplex. Each duplex similar to what is currently being sold in the area is about 4.3 to 4.5m. So total sales will be say 9m, construction costs, plus soft costs, plus DA, CC fees, plus site works, demolition, marketing, contributions, No interest costs as land is paid off and construction will be paid with cash. so Roughly Total Development costs will be no more than 2mil. So 7mil gross in sales. Whereas if we sell the house as is we will get around 4.3m. So its a no brainer. I will do a proper write up soon. My dad wants to go 50-50 with me even though I said I am happy with just a PM fee but he insists... so who am I to complain I am really looking forward to some father/son bonding too on this one.

 

Sensitivity analysis: 20% drop in sales price $9m-20%= $7.2m - $2m = $5.2m. Still pretty healthy in my book

 

Hey Scott, it is possible for a 20% drop in this stock but the market is so strong for OO... I don't anticipate it will happen but like you pointed out even if it does to the tune of 20%, that's a rough gross return of 5.2m as opposed to selling the old home for say 4.3m

My dad had the foresight to buy 3 such homes in parallel streets back 30 plus years go... all for under 200k each... and that was a lot of money back then he tells me...he worked his ass off hawking all kinds of goods around Oz on those days. When the average income was like $350.. they would bring home 2k a week selling Watches, brief cases to bosses was like a magic bag... in the country shops and gas stations everyone wanted one..clocks...radios.. you could really sell in those days.. before China killed the market.

 

A decent place in Mosman was about that too back then but no subdivision potential for duplexes, only be $3-3.5

The old man bought well

 

Did you buy in Mosman?

 

@Leo2413 unfortunately it was 20-25% over my budget at the time.

 

So close... you must have also had saved a lot and done well though to be that close.

 

Price relativity - the area is still 20-25% short of Mosman

 

Chris Gray is a buyer's agent and does a lot of his work around Coogee and Maroubra. He's also known for putting together development syndicates, so he'd know that space well.