Mount Barker S.A. Division

Good news!!!!

 

Bad News!!!!! SA Water copped a mouthfull today.

 

Gets ripped up and replaced tomorrow.The big man at SA Water was very apologetic.

Good morning James



We have completed some investigations and it appears that in the circumstances the damage was most likely as a result of SA Water works.



Apologies for this and please forward the rectification costs for our consideration once repairs are complete.



Regards



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Office of the Chief Executive

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Fantastic that they are taking responsibility and rectifying. Good.

 

Interested to know how long it takes to sell.

 

Yep, 2 offers, one at High 150,s, one at mid 160,s.Negotiating with the later.

 

Nice, can you build 2 at the back without subdivision? I know some councils allow that.

What sort of rent would those houses at the back rent for?

 

YES !!!! the policy area will allow 2 homes to be built.We get $320 for the old front one,so at a guess $350 ish each.Good #cashflowplay..........................................

 

7% yield after build which is pretty good.. But I think it is better buying existing properties up in that area and get 6%+ yield with ability to add value (subdivide) in the future.

 

These properties are there, but you would have to be quick to secure,and they rarely make an appearance on the general selling market.Also the policy areas do not allow sub division over a lot of the inner ring town area

 

Win!!!!!

 

Maybe 3 months then.**Update**, due to a number of circumstances, the land did not sell for the price i wanted, i wouldnt budge because i have decided to build the 2 homettes myself on the land.I have done a turn around and will now sell the house at the front.


20 Dumas Street Mount Barker SA 5251 - House for Sale #123133154 - realestate.com.au

 

Hi @jim1964,

Really interesting thread. Just wondering if you would mind sharing your initial feasibility for this project. I'm interested in getting into some similar projects in the future and was wondering what your numbers looked like when you were deciding on this deal.

Robbo

 

There actually was none!!! I knew i could turn a decent profit dividing the land off,we bought in at 270k plus stamps,cost 25k to divide,so now i have decided to sell the house(at 279k),after costs we will pay the loan out with a free block of land valued at 150k(conservative), i will borrow against the land to raise the homes deposit.Thats the plan, but i am in a funny mind at the moment,everything is for sale at the right price, even my PPOR which i sold last week.

 

How have you managed to sell the house for $279k (more than the initial purchase price) after you've halved the land? Is the market going crazy over there?

Have you done projects like this before?

 

Its what happens when governments sell off their housing stock,at huge losses to the taxpayer, and yes!!! i have done a few of these.

 

**SOLD** last week to a 1st home buyer for $270,000.

 

Just thought it was time to update this and finally close of the project.There were a few(many) hurdles faced here,in the land sale,it was a good lesson on being patient,proactive & positive.
1) Out 1st agent had the land for 6 months, in that time we sold it twice, on paper, one contract for $175,000,which fell over with a finance rejection, and another at $173,000 which the purchaser cooled off in the last hour for unknown reasons.
2)We took it off the market pending we may develop it ourselves.
3)On discussion with our agent who sold the front home for us, we decided to have another go at selling the site, with our new agent.The issues we faced then was land in Mount Barker had reached saturation levels through over development
4) We had another 2 contracts fail, one the purchaser needed a subject to selling their home sale,and the offers they had were all too low to proceed,this contract failed at $173,500,the next contract was for $171,000, with the purchasers failing to get finance.
5) Happy to say we have finally now sold the block at $174,000.
A good lesson to anybody wanting to do this sort of development, to always look at the positives,in a tight market.

 

Got there in the end