WA Post a Bargain - Perth

There's an uproar at WAPC about the condition - the two separate petitions to have it removed is over 200 strong and residents aren't taking it lying down.

The SPC heard the residents cases so time will tell.

 

As it stands, can a 1,000 sqm lot be subdivided then 2 dwellings built on each lot? Subject to meeting r-codes requirements, obviously.

I tried trawling through the City of Vincent planning framework to try to find the answer to this question but I could not make head nor tail of it. The lot is in the Norfolk Precinct and Alma Locality? But I could not seem to locate any planning policies relating to these.

 

Awesome weather

 

I am very curious to see what this goes for at auction.

Its not often that you get a nice modern renovated home to this standard.

A First Class Build on First Ave!

 

As basic as you can get. <$200k. Gosnells. Interesting use of food tray to contrast with clock. 215 Eudoria Street Gosnells WA 6110 - House for Sale #125415254 - realestate.com.au

 

The cleaning products by the toilet add a dash of colour

 

Gotta be $2mil surely?

 

I really have no idea ? I would have thought, good location but the Avenues don't necessarily command some price as Streets like Glenroyd, Hill

 

Anyone know how much the owners purchased this property for???

 

17 Queens Crescent?

According to ksou:

Sold $1,750,000 in Sep 2017
Last Sold $1,575,000 in Jun 2012

I would take ksou with a grain of salt and cross check with another source.

17 Queens Crescent, Mount Lawley, wa - Property Sold Price

 

They probably spent around 300K renovation

 

Ouch!

 

Don't know if this is considered a bargain or not, but just wondering about potential yield plus growth prospects of a property like this
24 Badrick Street Warwick WA 6024 - House for Sale #126607990 - realestate.com.au

Growth drivers
Location, I think is not bad from what the limited information that I've read about northern locations. Left half of the suburb so further away from Girrawheen, and not too far from the coast or the city.
Near train station
Land size nice and big at 729sq

Yield
4-bedders rent for more and tend to have higher yield so just the house should get a comparably good rental return (I did not look this up though), and the extra self-contained apartment on top should make the yield very very good - something not far off double the rent of a 3-bedder house(?)

I am not sure if there is any value add potential for this property, but if you buy at the bottum of the market in a decent location with good land size and apartment on top providing high yield, this might not be an issue.
I don't know what the impact of having a self contained apartment on top will do to rentability or value though.
Also I don't know if it is a problem to have such a nice looking property as a rental. Is this ever a concern?
And I don't know what the price would be. Domain estimates 543k.

Anyone have any thoughts on this property?

 

"Extremely mediocre and will probably be overpriced at auction" are my initial thoughts.

Its just not very special in any way. What would your strategy be for it? I can probably guarantee you can find a better property for any strategy.

 

Hmm .. the strategy would be to find something that is middle ring for growth prospects while being CF neutral.

To get CF neutral you normally have to either go 20+ km out which has lower demand out there which means lower growth, or else you have to make up the CF out of your own pocket for something in a middle ring location like this. I'm trying to find ways to have my cake and eat it too.

Development is the only other option I can see to do it, but I am wondering if there is a less risky way, so I was thinking something like this might be an option.

Would welcome other ideas.
Also can you explain further about being mediocre?

 

There's just nothing special about it. Pretty standard lot, location and house. Price is probably going to be average.

If your strategy is CF neutral with growth potential, that's a decent strategy - but I don't think that particular property will be even close given the typical rents for houses in Perth atm.

The land being R60 is also a complication for you if development isn't your plan - you might end up paying more for the development potential when you don't need to.

 

I have thoughts on Warwick. I like the suburb but not necessarily the house you chose.

I bought a corner 822sqm block between your pick and the train station. Mine is R20/R40 not R20/R60 like your pick. I paid $580k which wasn't a very good bargain but it was a complicated sale where the owners of the Warwick property bough one of our properties and we bought theirs - bit of a trade in scenario - so whatever we haggled off theirs, they would haggle off ours so no point. The value in mine ( for me, which is probably different for you) is it's developability - corner block allows me to have 4 blocks with street frontages.

I'm not sure I would classify the upstairs area as self contained as you have to go through the main house, would be awkward to rent out separately and I think it's really just a large family home with a teenage retreat

So it doesn't really do anything for me as I think the owners will have too much value in the house.

 

Thanks for the reply.
Why would this house get below typical rents?
Also how do you pay more for development potential when not developing?

 

Why us R40 better than R60? I thought the higher the number the smaller the land can be split which would be more desirable.

Also, how did you know the upstairs area needs to go through the main house?

One last thing - if going down the route of buying a retain & build, could you let me know your thoughts on the idea of planning for the new property to have a large 4th bedroom with separate access and ability to either wall it up (to rent out separately to increase overall yield) and then able to open it back up when selling it later on as a 4 bedroom house (since selling it as a 3-bedder plus separate 1 bedder probably won't be very attractive to buyers).

 

I don't think it will get below typical - I think it will just get typical rent. Which is the problem. Perth rents are really awful at the moment.

A quick look on realestate.com for rental listings has a couple of 4x2s in the area listed for $450/week. This property will probably get similar, or maybe a little bit more if you're lucky.

Well below CF neutral.

And you will pay more for development potential when not developing because that is often the highest and best use. And even if its not, buyers tend to pay more for the potential - probably stupidly mind you. Or, the prices in the area will be inflated by the potential of comparable sales.