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Thinking outside the square: any ideas for this low zoned block (WA)?

Discussion in 'Development' started by Big Daddy, 12th Jul, 2016.

  1. Big Daddy

    Big Daddy Well-Known Member

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    Im looking at a R20, 687sqm rectangular block (16mx43m) located close to the city at a good price.

    Any innovative ideas on how to make money from this?
    1)Cannot split down middle as the frontage is not >=10m each
    2)Cannot do Single Bed Dwelling as i can only get 2 on here and its not feasilble unless i get 3 (Driveway takes up too much land as the block is long)
    3)Can i do multi (apartments) at R20? I cant see any zoning below R30 in the rcodes so would R20 be 0.5 site coverage? If so, has the rule gone through banning apartments at R40 or below unless they are 800m from a train station or activity centre?
    4)Can do one large house (dual living) but i wont get much equity from this as i have one title.
     
  2. HD_ACE

    HD_ACE Game-Changer Premium Member

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    R40+ for multis.
    Amalgamate with a neighbour to get 3?
     
  3. thatbum

    thatbum Well-Known Member

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    2 SBDs would be your best bet I imagine - and depending on the numbers, that might not work. Not sure what you meant by the driveway being too long? There's plenty of land if the SBDs are capped at 70sqm.
     
  4. Big Daddy

    Big Daddy Well-Known Member

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    Thanks
    Have not purchased the block and the block next door is >1300sqm so little chance of that happening.

    SBDs at R20 would be min 233sqm lot sizes.
    3x233 = 700sqm which is not enough land.
    Would be a waste to have 2x70sqm dwellings on a 683sqm block, plus there is no profit in it.

    I think its very cheap but has no development potential. SBD's would be good since its close to Uni.
    29 Pinedale Street East Victoria Park WA 6101 - House for Sale #122859274 - realestate.com.au
     
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  5. Perthguy

    Perthguy Well-Known Member

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    Is this an equity play or a cashflow play?

    You could try a large dwelling with ancillary accommodation and rent it out to students. As you stated above, low value due to one title.

    I am not near my computer so I can't run lot sizes but can you do one house and one SBD then strata title? How would the numbers look for that?
     
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  6. Big Daddy

    Big Daddy Well-Known Member

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    Pure Equity
    Great idea ..I'll run numbers tonight
     
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  7. thatbum

    thatbum Well-Known Member

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    Honestly knowing the area, I don't think there is anything particularly special about the property or the asking price. I don't think its that cheap either.

    Just seems like another property in the 97% of properties that aren't really investment grade.
     
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  8. sanj

    sanj Well-Known Member

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    Agreed. I don't think it's very cheap at all, certainly not for someone looking to make some money on it in some other way than hoping for cg.

    if it seems a fair bit cheaper per sqm than others in the area it's probably because many of the others has some value add potential whereas this has a big but largely useless backyard
     
  9. Big Daddy

    Big Daddy Well-Known Member

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    Yes zoning let's this place down. It's quite a big block close to the city and uni.
     
  10. sanj

    sanj Well-Known Member

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    No need to make a silk purse out of every sows ear, sometimes they're what they say on the box. this isn't the worst place for someone with say 500k to spend on a PPOR to buy and over time extend or even rebuild but that's about it imo
     
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  11. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    What about a single house with granny flat plus a SBD?
     
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  12. sanj

    sanj Well-Known Member

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    he said he's looking to create equity, imo at prob 1.1-1.3m at end costs to create those 3 dwellings I don't see there being a whole lot of equity created imo but ive literally done those numbers in my head for about 10 secs so could be wrong.
     
  13. Aaron Sice

    Aaron Sice Well-Known Member

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    Only.if you want to apply plot ratio.