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Maximising R3 Zoned Property Price

Discussion in 'The Buying & Selling Process' started by Samir, 13th Sep, 2015.

  1. Samir

    Samir Member

    Joined:
    13th Sep, 2015
    Posts:
    20
    Location:
    North Sydney
    Hi.

    What's my property worth?

    I will soon have a share in an R3-zoned property in West Newcastle. I have done a bit of brainstorming as to "who" is going to be willing to pay me the most (my niche).

    Though nothing is concrete between the Council and I, I believe the property can be DA based on its specifications. I am expecting to be able to seal a DA for a minimum 20 unit-apartment style residential occupancies. Its current value, per unit, would be at approx. $320,000 each.

    A builder with the resources to cost-effectively build 20 unit building would yield, based on present market value (should there be a DA), gain monetary wealth gross of 320000 x 20. I want my estimate - though quite accurate - to be seen as coming direct from a third party property evaluator.

    Say - truly - my property, or that in which I have a substantial share in, has a gross profit value immediately after the construction of the 20 units; of 6.4 million, how much is it worth to an investor/developer?

    In 5 years from now, such a project - all economic factors remaining equal beside market value - were to rise 200%, and I target a "long term investor" willing to "sit and wait", could I possibly sell for 500% of what we had paid?

    i.e just under 500k.

    More so, where can I find this niche? Already I have planned out who will be the investor. Someone who is a bit lazy, with a few million in the bank desiring a steady long term ROI. Where can I find this sort of individual? I only need one.

    To be honest I would like to sell the property along with the DA for at least 2.5 million i.e 500% however its about, a) can I get more? b) where do I find the best investor to maximise on MY investment...

    Cheers.
     
  2. Jamie_

    Jamie_ Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    353
    Location:
    Perth
    Equivalents near by?
     
  3. Samir

    Samir Member

    Joined:
    13th Sep, 2015
    Posts:
    20
    Location:
    North Sydney
    Good question - right now there are properties with half the property size selling @ approx. $400-550,000.

    Source: realestate.com.au

    The suburb itself is less than 2hrs to Sydney. R2 developments within street proximity are under way.

    I feel the true value is @ approx. 2.5 million however this will be conditional upon DA for a unit/apartment building consisting of minimum 20 occupancies.

    However the purpose of this thread was to find a way to maximise MY profit, not the investors.

    The immediate ROI when all dwellings had been sold after construction will be approx. $320,000. Of course depending on how the investor decides to finance, could yield a net income (after sale) of 2 million (rough figure). Then there's the option to positive gear and "wait for the boom". Leading to a 2 million surplus, with time.

    Tomorrow morning we are meeting with the conveyancers and the owner to seal the deal. Once the transaction has been fully processed I will post the exact location if need be.

    Meanwhile looking forward to more feedback.
     
  4. AndrewTDP

    AndrewTDP Urban Planning Consultant Business Member

    Joined:
    1st Jul, 2015
    Posts:
    765
    Location:
    Newcastle
    I haven't been in front of the computer yet but will look tomorrow.

    I have a client that buys potential development sites gets a da then sells them.

    I'll get some more details as to marketing etc next week.
     
    Samir likes this.
  5. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,502
    Location:
    Sydney
    Sounds interesting. Post the address once you sealed the deal. Congratulations.
     
  6. Samir

    Samir Member

    Joined:
    13th Sep, 2015
    Posts:
    20
    Location:
    North Sydney
    Thank you, Sir.