Sub Division and optimal house size/features for ROI

My partner and I are currently looking at sub-dividing our property through a retain and build, which is approx 25m by 40m on a corner block, into a 450-500sqm block.
The property was purchased in 2006 and is currently worth 240-250k. We need to put in approximately 15k to get the retained house up to standard, more time than money as such.

We are currently looking at some housing plans to determine the best ROI but are unsure as to the best way to go about it.

1. Build the cheapest house, small 3br house, low maintenance gardens, for first home buyers or investors. (another investor across the road from my house appears to have done this).
2. Same as above, but with some features such as nice facade, kitchen, bathroom etc.
3. Large 3br house, or small 4br house
4. Large 4br house with minimal land.

Our concerns are that while other nearby towns are severely limiting development, our town is not as such, and several housing estates are being developed, but there are a number of houses in the area that have already been divided.

This is our first investment, so keeping it simple is the idea. But we would be interested in any advice.

 

dont know where this land is and if in adelaide i dont know too much about it.

you said its worth 240-250k as is.

i could be wrong as im not area specific but i would guess once subdivided the land would only be worth 100k and you dont want to spend 700k building a nice 4 bedroom home as the amount of potential buyers would be minimum if not nil.

notsure what your objective is but iif you are going to sell them have you thought about selling the land as is once subdivided (notsure if your council allows it)?

Also is it possible to retain your house and build 2 smaller dwellings (2/3 bedroom)?

from what is mentioned you sound like your in a cheap neighborhood so maybe a basic 3 small 4 bedroom house on the budget would be ideal.

I could be wrong

better person could be a local real estate agent who would have info on the people looking at buying

 

Thanks,


Yeah, land is worth about $100k, and with a few estimates, we think we can make an extra 40-60k by building the house. The selling price for the house and land is 300-320k.

we have currently drawn up a plan for a spacious 3br house on the block and it comes out at $165k although we think we can get that down to 150 doing the insulation and floors, paving and heating/cooling ourselves. There seems to be a massive mark up for those items.

We found another house that was 17k cheaper including a carport, on the listed price, but small and simple. If that cost us 130k, the question is. Would the investment on the bigger house pay off, and optional extras we had costed like 4K for 9ft ceilings, 12k for a double garage.

Would we get away with a gravel drive way, and footpaths rather than paving, or would it be worth spending the extra money on.