Newby Intro - Purchasing Question.

Discussion in 'Introductions' started by KGR05, 5th Jul, 2018.

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  1. KGR05

    KGR05 New Member

    Joined:
    4th Jul, 2018
    Posts:
    1
    Location:
    Perth, Western Australia.
    Hi All,

    This forum is awesome and have learnt loads of information / processes through reading about various threads.
    Wouldn't have been able to purchase my first property without this forum helping me through the journey.
    ....long time reader first time poster....
    My name is Kieran, 23 y/o and working full-time.

    I have just purchased a neglected house on a corner block (690m2) with development prospects. My plan with this house is to get it to a rentable state and rent it out.
    10 to 15 years down the track i want to develop or sell the land of as individual lots after subdividing and hopefully make money.

    I write here not only to get involved in the forum a little more, but to ask for opinions on the following...

    So, block 'A' is where I live and block 'B' with a 4x2 brick house has just been put on the market (corner block - 700m2). ***Attached is picture***
    My first thoughts: This would be great to purchase and in 10-15 years develop at the same time as block 'A', that of course if the price was right.
    Haven't put much more thought than that.

    Has anyone ever done this and what were their experiences?
    What comes to your mind?
    Am I being to greedy?

    Thanks for the read.
     

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  2. Propertunity

    Propertunity Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,476
    Location:
    NSW
    Of course not! You are forward planning. Developers do this all the time. Welcome to the forum Kieran.
     
  3. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,035
    Location:
    Vaucluse, Sydney.
    Wanting to build wealth for a better life is never greedy. What you're talking about is land banking. Just keep in mind that in 15-20 years down the track, the development options for the land may possibly change. Sometimes for the better, though not always.
     
    hobartchic likes this.
  4. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,380
    Location:
    Qld
    Check the potential advantage to having both blocks, to see if there are greater opportunities with them combined.

    Meaning, if each block can be cut into two blocks, can the combined area be cut into 5 blocks?
    Or, is the number of townhouses or units allowed on the combined block greater than double the number that can be built on each block?

    There is no right or wrong answer, just be sure to clarify the value of the adjoining property to you.
    Marg
     
  5. hobartchic

    hobartchic Well-Known Member

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    11th Sep, 2017
    Posts:
    1,513
    Location:
    Hobart
    I would think about doing something with the property you own first. Zoning can change quickly and make a property that is undeveloped worth almost nothing over time. Less likely to happen when a property is developed and utilized.
     
  6. Eric Wu

    Eric Wu Well-Known Member Business Member

    Joined:
    8th Oct, 2016
    Posts:
    1,603
    Location:
    Australia
    welcome to PC @KGR05

    if you are greedy, your are in the right place here. :cool:, aren't we all greedy on PC.

    well done with your current pruchase.