WA Post a Bargain - Perth 2018

2 expensive for me as well but there probably is a market that will build a 3 storey Mcmansion on it. Very very tight though

 

As @MTR pointed out, city views from the 3rd floor. I do kind of get it but spending that much on a build is inconceivable to me.

 

Throwing myself to the lions here ;p
What do you all think of this as PPoR for a few years then demo and subdivide
reiwa.com - 18 Cutts Street, Hamilton Hill

Would you still be exempt from cgt with this strategy?

 

Last sold in 2006 for $377k and has had some minor improvements done since then (flooring, clean up back yard etc).

772 is pretty small for a triplex, and there are thousands of the same going into Hammy hill. I doubt the numbers would work with a $480k price tag. But that's just off the top of my head - I haven't looked at it at all.

No - you will need to pay CGT (or maybe even Profit tax + GST).

I'm impressed to see Hammy hill nearing $500k though. Hammy hill is nearly 'balga of the south'

Blacky

 

I'll disagree with @Blacky here

772 is ok for a triplex. Balga, Westminster, Nollamara is 90% blocks which are 728sqm and you can build a triplex 3 x 2 with double garage that are single storey. It's squeezy but it's not terrible.

The bonus of 18 Cutts is that it's a corner block even if it's a little awkward in its shape.

Find out where sewer lines are (Dial Before You Dig) and put $650k in your calculator for turnkey single storey villas and see what the answer is.

 

Thanks Blacky, can you explain why cgt would be applicable considering the house would be my PPoR? Is it because I would be demolishing the house itself then subdividing? If that is the case we could simply live in the house a few years, hope the market rises ( which I think it will ) then sell it as it is now for someone else to then demo and develop

 

Thanks Westminster. I am in no way a developer so would have no idea how to put the figures together. We probably wouldn't develop it ourselves simply live and hold then sell it as is or demo then sell off

 

Thinking primary residence

 

Agree. Block size is quite ok for triplex

 

Curious what are end values of villas in hammy today, each will have own frontage .....bonus

I see around 10-15% profit at around 480k each? But is this realitic sale price??? No idea
If its 450k you will be in a world of pain

Could always work backwards, low ball to where it works

 

I wouldn't think 480k is realistic sale price but all depends how market goes over the next few years really

 

I've had a look only at past listings (since I'm not from or in Perth), so this might be wrong, but from recent listings it looks like the prices for the east side of Hamilton Hill towards Coolbellup are significantly lower (450-470-ish for avg property) than the north & western side, for obvious reasons. It looks like even slightly east of centre that the prices drop noticeably to these numbers, whereas the north & north-western (near more expensive Freemantle/Beaconsfield), and western side near the park and closer to Coogee Bech are noticeably higher priced around 525-ish.
I am thinking that the higher zoning allowing a triplex plus corner block is what might be pushing it up to a 480.
As I said, I am not from or in Perth, so please do your own due diligence as I could well be wrong, but just be aware that there are different parts to many suburbs, and this looks like it may be one of them.

 

Ok - Ill accept 770sqm can be done but its a bit squeezy.
Hammy hill isn't central and there are hundreds of this product in the area. So whats going to make you stand out? Unless you do something different/special, it will all come down to price.

3x2 in Hammy is probably $400k at best. $1.2m end val.
4/40-42 Frederick Road Hamilton Hill WA 6163 - House for Sale #127325890 - realestate.com.au

$500k purchase price (inc buy costs).
$650k turnkey build
$50k contingency
=$1.2m.

Profit - SFA...

Blacky

 

Yeah @Blacky im with you on that. No profit if you are looking to build all 3.

I’ve been looking at HH, Spearwood, Cooby area for a while now to do a triplex myself. There is both Capital Gains or Rental yield to be made depending on strategy if you can secure a property with front house that can remain with room to put driveway down the side and build 2 out back.

 

and Interest payments during the build $50K????
May as well buy from a developer new product/fire sale

 

Just be mindful that the strategy of retaining front property can also reduce the end values of new product unless reno of front property is appealing/done well.

I have not looked at Spearwood lately but I sold my 3 villa project around 15 sqm each in 2014, end values went from $520K, today $450K or less, there would be absolutely no profit in these today after selling, GST etc etc etc

 

728sqm R40 makes me a little nervous, even 770sqm is a little tight but this triplex site plan on 728sqm is quite good. I think its a forum member. Anyone else got some good 730sqmish triplex plans?

 

Me
Spearwood villas I sold around 734 sqm block
You viewed these??

728 sqm typical b
Balga sites, have seen some good designs by clever draftsperson

 

I recognise those plans - yes they are one of the better 728sqm block designs. The one negative would be the toilet being moved into the bathroom to save space but I think it was a good move to make the rest of the house work better

 

I have a dream....

I have a dream that one day the Wa govt will build a public network of transportation which allows 90% of the population to travel mainly using the public system.
The dream then involves perthites to stop relying on their cars as their main form of transport and in return declare “who needs a double garage nowadays anyway” “let’s turn all that space into productive living area”. “Hey mr/mrs developer don’t build double garages. We don’t want them anymore. They are soooo 2010’s”

Imagine these designs using that double garage space! What bliss.

*sigh*

Back to reality.

Blacky