NSW Sydney is absolutely insane!

Discussion in 'Property Analysis' started by Air_Bender, 25th Feb, 2017.

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  1. Air_Bender

    Air_Bender Well-Known Member

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  2. Biz

    Biz Well-Known Member

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    Development block. Guessing they can probably squeeze quite a few units on there with the right connections and a few brown paper bags.
     
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  3. Air_Bender

    Air_Bender Well-Known Member

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    Agreed. There are units on either side of the property already so it makes sense for the new owner to build more.
     
  4. RetireRich101

    RetireRich101 Well-Known Member

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    hope they can still keep the wall paper
     
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  5. sash

    sash Well-Known Member

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    They could probably get 12-16 units units on that that is about 250-300k per unit.

    Add to that about 450 per unit to build.......and you can make a profit hopefully the market does not turn.

    From my perpsective....when you see these sort of things we at the top of the market...I would be very careful....
     
  6. mikey7

    mikey7 Well-Known Member

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    Just under 700K a unit once completed then.. (based on 16).
    Would a unit in that area sell for more than that? (I have no idea, never researched that area).
     
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  7. sash

    sash Well-Known Member

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    Yes....they are selling some 1 brms for that......but I think financing of them are harder...just a small margin of error...and poof you are in trouble.

    This is similar what I saw in 2003 in Sydney...so the alarm bells are ringing...
     
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  8. C-mac

    C-mac Well-Known Member

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    Wow so Sash, all in, each of those units would need to sell fpr at least 900K+, in order to actually make profit out of the whole project.

    You are right; 900k - 1000k asking price for a unit in marrickville at this time in the cycle (technically in 2 years say 2019, when they are actually completed) is a massive risk for any devloper - big or small.
     
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  9. mikey7

    mikey7 Well-Known Member

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    Wow, crazy. A good potential to make a lot of money then! ($4.8mil+ before any tax, interest, etc).
    But as you said.. very risky.
    Wonder what kind of quality of finish they would be going for too. Kinda wish it was someone on here so I could watch and learn.
     
  10. sash

    sash Well-Known Member

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    Yes....and at the same time finance is tightening....pre-sales ain't going to matter much if the bank deems it too risking and shuts the finance pipelines...interesing times ahead....it will be interesting to see how this translates in the Brissie and Outer Melbourne markets as growth there has been much more subdued.
    Yes....very risky....the bankers will be nervous also....looking for any signs of trouble...ole Chinese curse...."may you live in interesting times..."
     
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  11. Speede

    Speede Well-Known Member

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    Good project....can't go wrong...sell 12 keep 4 happy days.
     
  12. Moltzerman

    Moltzerman Well-Known Member

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  13. Moltzerman

    Moltzerman Well-Known Member

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    Bidding started at $1.9mil
     
  14. sanj

    sanj Well-Known Member Premium Member

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    No, it would need to sell for over $1m to make required profit, based on above assumotions of 700k for land component+construction. Don't forget professional fees, GST, selling fees etc
     
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  15. sanj

    sanj Well-Known Member Premium Member

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    4.8m?? No chance
     
  16. Hwangers

    Hwangers Well-Known Member

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  17. lightbulbmoment

    lightbulbmoment Well-Known Member

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    Where have you pulled your 450k price to build per unit?? A builder could do it for a lot cheaper than that
     
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  18. lightbulbmoment

    lightbulbmoment Well-Known Member

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    Beautiful house would love to renovate it.
     
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  19. Iamnumber5

    Iamnumber5 Well-Known Member

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    I would think they can fit 20 units combination of 1 and 2 bedroom quite comfortably. Therefore land cost is 200k per unit. Add about 300k construction cost. If 1 bedroom sell for 700k, I think it's reasonable price but they will need to have deep pocket to proceed with the project.
     
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  20. Air_Bender

    Air_Bender Well-Known Member

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    It looks like the new owner will renovate the property rather than knock it down straight away.

    Home on the market for first time in more than 90 years sells $1.77 million over reserve

    Good on him. It's a beautiful home and all it needs is a little TLC.

    But how sweet life must be for the vendors. $1.77mil above reserve. I guess this is what the NSW Housing Minister meant when he said "you're pretty well set for life if you buy property in Sydney". :D
     
    Last edited: 25th Feb, 2017
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