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Discussion in 'Where to Buy' started by Kieran989, 19th Jun, 2015.

  1. Kieran989

    Kieran989 Member

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    Hi guys,

    Novice property developer here.

    Looking at buying first IP around 450k around early 2016. Done a fair bit of reading and I am leaning towards the idea of buying a IP that has been earmarked for rezoning. I would love to sink my teeth into property development as this really interests me.

    I think for my price range I would best be looking for something around the shire of Kalamunda (Forrestfield, High Wycomb etc). Also considering areas around the city of Swan (Midland, Beechboro etc). My strategy would be to hold these property's and until rezoning is approved and I have sufficient funds available to develop.

    For my price range I think I would have to look for potential "house behind house" developments?

    Would love some advice / opinions regarding my strategy, locations, pricing etc.

    Also would love some pointers on what people look for when identifying potential "house behind house" scenarios. I have a grasp on how the zoning works. One thing that has me confused is the side access required. I know that 3.5m is required down the side but wouldn't this be hard to find on existing properties? Or do people like to find properties with a carport on the side and relocate that to the front to allow access?

    Appreciate all comments and advice :)
     
  2. thatbum

    thatbum Well-Known Member

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    I haven't found it too hard to find the side access required. Plus there's corner lots and the like that come up from time to time (particularly in the areas you described). The biggest issue with this strategy though is that you can't be sure when the rezoning will happen, or whether the zoning you get is what you expected in the first place.

    I think you could be making it hard for yourself as a first IP strategy. Developing is hard enough as a first timer and you could be complicating it by adding a rezoning factor to it.

    Have you had a good read through the Rcodes? Essential reading for budding developer in WA.
     
  3. Be Developer

    Be Developer Property Developer Business Member

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  4. HD_ACE

    HD_ACE Game-Changer Premium Member

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    Ensure your research and understanding of the R-codes are sound. With rezoning, nothing is garanteed and rules and requirements can change. Also youl find the prices will already be built into the price if your not early enough, which for those suburbs your not.

    One strategy could be to choose a suburb with potential and find large R20 sites for a retain and build. Less competition, more stock.

    Retain and builds will need closer attention for driveway width, council requirements to upgrade existing house, easments and location of services, survey strata or green title.

    Hope this helps.
     
  5. Big Daddy

    Big Daddy Well-Known Member

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  6. Blacky

    Blacky Well-Known Member

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  7. LifesGood

    LifesGood Home Building & Development Consultant Business Member

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  8. Big Daddy

    Big Daddy Well-Known Member

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    Thanks
    A bit misleading as I see the price as 799k and land size listed as 845sqm.
     
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  9. LifesGood

    LifesGood Home Building & Development Consultant Business Member

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  10. Big Daddy

    Big Daddy Well-Known Member

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    Excellent pocket of yokine and wide frontage is good candidate for split down the middle. Don't know the numbers but this one looks good on he face of it.

    reiwa.com - 72 Lonsdale Street, Yokine

    No 48 Lonsdale is for sale for 1.3m
     
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  11. aushelby

    aushelby Member

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    HI all, could I ask for a general view on this please - 23 Gresham Street Victoria Park WA 6100 - House for Sale #124483250 - realestate.com.au

    To me

    • Great spot (for train, shops etc)
    • Seems a little on the expensive side
    • With R40 and 674sm bock, appears 3 is possible but going to be pretty small unless you go up
    • I like (with no research) the idea of a 2x2x2 model to cater more to singles/couples rather than families etc
    Negative is the frontage (narrow) but still seems doable

    Not sure the maths is going to work - I am guessing you end up at 450k-500k per house (triplex) so looking at other options, borderline

    Appreciate thoughts from the more experienced members

    cheers

    greg
     
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  12. thatbum

    thatbum Well-Known Member

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    Numbers don't seem even close. Move onto the next feaso I guess.
     
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  13. LifesGood

    LifesGood Home Building & Development Consultant Business Member

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  14. Perthguy

    Perthguy Well-Known Member

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  15. aushelby

    aushelby Member

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    Thanks, I guess the fact that the VP one is still available points to it being over priced

    Yokine - 52b on the same street, similar block and a new 4x2 @850 - looks similar to the VP one in terms of borderline (lots of effort to come out close to market?)

    cheers
     
  16. Perthguy

    Perthguy Well-Known Member

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    @aushelby I have not run numbers on either. They are both probably priced too high to be profitable at this stage of the cycle.

    Maybe develop a more detailed feasibility for each and post them. Posters like @Westminster, @MTR and @sanj are always happy to critique feasibilities
     
  17. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    38 Lonsdale sold within a week of listing 2 weeks ago with a price tag of from $675k. It's a nice little area.
     
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  18. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    The main thing that puts me off is the 13.4 frontage. You're going to waste a lot of space with driveways and reversing bays. You'd end up doing a lot of building on boundary on one side and that adds up $$$
     
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  19. sanj

    sanj Well-Known Member

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    yeh nahh to both of them.

    def not yokine when everything new recently built on good streets on 350/400sqm blocks, especially your 4x3 type double storey homes, has been selling at a fair bit under replacement cost
     
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  20. Westminster

    Westminster Tigress at Tiger Developments Business Member

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