WA Post a Bargain - Perth 2019

Girrawheen or Marangaroo? Or just “city of wanneroo” in general? Haven’t been in the area for a long while. I can see plenty of development happening in Craigie, surely someone’s got to be making money off these projects.

 

The City of Stirling lets Google find building approvals/permit. You can see base development cost. Other posts on here say a finished Unit is about $200k. Building company ads say from $165k which is the same as on permits (still need driveways fences etc)
You can search for sold property prices to find what the development block sold for.
You can search for sold new product in area,
Add stamp duty, Gst assume holding costs etc
In many cases the numbers don't add up. Unless the building company it doing the build themselves

 

I would not rely too much on estimated cost of development. It can be quite underestimated for a number of reasons primarily for a cheaper D.A. fee!

 

I understand the number quoted is low. If they can't make money on a low number not much hope on true cost.

 

I posted this at the end of 2017 as a “post a bargin Perth” and mentioned the land sold for $990,000. It’s now fully developed with, 8 villas for sale ranging $405,000 - $425,000. Just an FYI for anyone interested...

14 Camberwarra Drive, Craigie, WA 6025

 

Is there a shortage of pensioner accommodation in the area or something? Strange they are restricting it to over-55's only, wonder if this was part of the approval process?

 

Good finish but a 2x2 villa for $400k+ in Craigie? Overpriced for sure. The over 55 restriction means neither investors nor FHBs are rushing to buy these.

Even if these sell for $405k each = $3.24mil. Take away $1.1mil for land cost, stamp duty, agent selling costs etc. That leaves $2.14mil for land development, 8 unit construction, GST ($120k to $150k), holding

Each villa is about 145m2 (under roof) = 1160m2 (under roof).

I don't see how they'll make any money unless they are a developer?

 

This was an old state kindergarten site. It was advertised as a over 55 site only. Could this be a government requirement?

 

I believe the council were the ones who placed that restriction on it.

It's an interesting choice by govt (in my mind) as I personally wouldn't have thought it was a good over 55s location to enforce it. I think over 55s should be within walking distance to shopping/ammenities/medical and I think that spot is just too far from the Whitfords shops. If I was over 55 then I wouldn't be paying top dollar for that location.

But the over 55s did give it a density uplift turning a site that was probably only a 5 or 6 unit site into an 8 unit over 55s. They had 100sqm of plot ratio to play with for each villa and you can make a really nice 2 x 2 in that.

 

Thanks @Westminster for the explanation.

 

What are people's thoughts on this property as an investment?:

4/220 Nicholson Road Subiaco WA 6008

- Sold for 530k in 2014
- Then 440k in 2017
- Current asking price $480k

Close to train station, UWA, amenities and hospital but has commercial and residential zoning.

 

Check the body corporate allows a commercial component like consulting etc.

What's the strategy?

 

Is there any particular reason why they think its worth another 10% on their purchase price? Trying to get out before all the subi redevelopment?

 

Thanks for the advice Aaron. My strategy would be to rent for 2 years with a view to sell what I currently have and downsize to this (currently have a 4x2 being rented, almost paid off).

I went to the viewing and agent mentioned life changes of seller was reason for sale. Was being rented to uni students but there might be potential for a corporate-based rental of the property. Comes mostly furnished too.

Concerning Subi redev, yeah there are quite a few apartments being constructed near by in Claremont near the showgrounds I noticed that are in a similar price range.

 

How low will Kelmscott go?

11 Drayton Court, Kelmscott, WA 6111

I wonder how bad it is inside.

 

That is a very rough part of Kelmscot where people got shot and tenants of state housing bath on their driveways.

From the sale history, looks like an inheritance of sorts that changed hands early 2018. Probably want nothing to do with a dump and the huge reno bill.

 

Be worth a look. You've got about 80k wiggle room to fix it based on similiar ones on the market. Buys a fair bit of plaster and paint. Assuming it fits your targeted ip type

 

Highly doubt that. Probably about $20k to $30k wiggle room. This one on the same street and is struggling to sell for $170k asking.

14 Drayton Court, Kelmscott, WA 6111

 

Yes but needs work too. The cleaner ones are asking $199k that being said i dont know the area so not sure on street vs street. i would look if i was local, even if only out of curiousity

 

this^^

i used to live in Camillo, you couldnt give me $119K to live in that area. its so bad