WA Perth - Are all new build's a CG death wish?

Hi All,
Looking for people's opinions/experience on buying land in established suburbs
( Hilton/Doubleview/Scarborough and surrounds ) and building something that has some kind of USP or certainly not a cookie cutter. Do you think that money can be made on something like that in a 2-3 year period? Is it too risky with potential blow outs/unexpected costs for someone who is not a professional developer? This would be a PPOR ( FHB )
Have been watching existing dwellings market for 2 years and have found nothing that I "love" enough to pursue ( within my budget of course ) I do love older properties and the character aspect but you do see new builds that encompass some of the older styling and character.
Anyway just putting it out there really to see what peoples thoughts are.
Thank you all

 

FHB == emotion == cost blowout.

Depending on the suburb, a vacant block might cost a lot more than a very old run down house that no one wants to buy so keep an eye out for those.

 

Perth has many properties on offer for below replacement cost so I don't see how you could make money by building unless you found an absolute bargain of a land.

 

This will only be a PPOR for a few years and end game is CG or a decent IP so I wont get overly emotional about choices they will be more based on practicality ( practical layout, flooring, kitchen and bathroom ) & cost ( minimise risk of over capitalizing on items such as kitchen ). Decisions will always have the end goal in mind, this wont be viewed as my home as such just an interim dwelling

 

Different parts of Perth
Hilton is a lot different to Doubleview/Scarborough

 

I guess with that though you then need to pay 30k for removal of old run down dwelling

 

Agreed.

 

Love the numbers, not the property.

 

Sorry, but you have shown that you are already emotional about this process.

Have been watching existing dwellings market for 2 years and have found nothing that I "love" enough to pursue ( within my budget of course )

 

There is the potential for money yes but you will need to be selective in your location and what you build.
Unique can be good but it can also be a curse if it reduces the buyer pool when it comes time to sell. So you need something not cookie cutter but not too different.
Ideally you'd be looking for a street front block (via a corner lot subdivision) rather than a rear battleaxe I think.
Then very carefully runs the numbers and be conservative and work out if it's worth it.

 

Yes I knew someone would spot my use of the word LOVE. Let me rephrase, I haven't found anything that in my opinion stacks up as something that meets my current needs and that I see future growth in

 

Thanks Westminster, of course you are one of the most experienced here in this field. The fundamentals would be cookie cutter 3x2x2 with outdoor undercover area and some nice lawn. Agreed it cant be too unique was thinking details such as raked ceilings in kitchen/living/dining, french doors off master to outside, perhaps something bespoke in the bathroom or kitchen to set it apart from others maybe even an outdoor shower if can be located on exterior of somewhere there is already plumbing present....those kind of USP's nothing too drastic.

 

Makes me think of Master Chef and the "reinvention test" Cookie cutter but with a unique selling point.

 

Another Master Chef-esque concept "Deconstructed" lol

 

Hmmmm interesting I've never really thought of the pros and cons of both, typically you find rear blocks of course. Sometimes I think rear has advantage over street front in the fact that they can be quieter....and more private in some cases.
What would you say are pros and cons for both?

 

Unless you are VERY good at interior design and architecture, chances are slim that you'll end up with a super product for the same amount of money.

 

You'll be surprised that even after factoring in demolition costs etc, some vacant blocks want a premium.

 

I honestly believe that the current market is best suited for accumulation, buying properties with good fundamentals for as low as possible.

 

Yeh i completely agree. Existing buying seems the way to go.

23 Protea Street, Greenwood wouldve been interesting. On the market for 370k i didnt have a look at it so wasnt sure how bad the condition.

But if you got it for 340-350k then 30k demo. Then 250k new house youd be going alright.

https://www.realestate.com.au/property/23-protea-st-greenwood-wa-6024

683sqm just a rough example id come across not the best example and not the worse.

 

I have looked into building for our next PPOR, and with the current price of land there isn't any I have seen NOR in that $300-$400k range where after ALL the build costs that the end value matches money spent. Would always be overcapitalising but I think thats common with PPOR. This is even with me building at cost.

I like everything about this except the price. Great location and block though to build something, but at $429k it isnt worth it.
58 Halgania Way, Duncraig, WA 6023