VIC Thomastown/Lalor

Did you not execute well in your first development?
Sounds like you made decent returns on it
Could you not elaborate what you would have done differently on this site?

 

@Lone_Wolf

my first development was good except really crap location. i cleared around $350K..i couldn't have done anything better then what i did on that site.. i think we moved mountain to get that results?


Back on your original question:

Bought well

As a developer, i learned to keep emotion out of deal, we carry out proper Due Diligence to make sure there is a decent coin in a deal. I don't listen to media reports of Suburb, state. By the time suburb name appears in media outlet.. boat is already sailed.

if number works.. we make a move..

Executed well

once site is bought, it is like painting on blank canvass. what you build on it will determine your profit/loss.

one should know how to carve up blocks, design, market demands, construction techniques that can save construction cost, and selecting right team and people.

i personally employee right people to manage projects. every $ spent on them, it's worth it.

i have seen countless design and inappropriate use of land that would have resulted in less or no profit at all.

 

Thanks for the response and the details behind your definition of well executions.
Much appreciated.

One last question back to your first project
It appears that you have sound knowledge of "how and what to develop"
Isn't buying the "right location" one of the first fundamentals of property development?
It seems you could have done it better in this department for your first project, am I right in saying this?

 

@Lone_Wolf

yes, BUY LOCATION is our mantra now..

I bought that location as land was 50% cheaper then other blocks that were selling in area.

but if i can rewind clock now, i would have gone for better location! however, for me, we executed it well and made decent coin out of it.

Now, we buy for us or for our clients, we focus on location (Even though we have to pay little premium)

If you are in Sydney, we are organizing a meet up focused on property development..feel free to drop in!

 

I purchased a block in Oct last year in TT, and council just rejected my proposed 4 T/H build.
Not sure what I will do now will need to crunch numbers, and maybe goto VCAT.
As @BLAIR_ said maybe will do a smaller project to start for the next one ie retain and build at the rear.

 

can i ask what was the reasons council gave you rejecting the 4 TH's?

 

Sure stumpie
neighbours originally objected and then a few clauses-
neighbourhood character, street setback, landscaping, energy eff, parking, dwelling entry, design and common property

 

Soulfly, which street is it on?
Can you PM some details

 

@Be Developer, Are yours 2 bedders around 8-12sqm?

 

@Lisa Parker- Buyers Agent

yes they are!

1 x 2 bed 2 bath
1x 2 bed 1 bath 1 study
2x 2 bed 1 bath

 

I

@Be Developer. Its a great idea. I had never considered doing 4 smaller ones on a block that size, but it seems there is a market for them, yes?

Close to transport (I am assuming) is integral to the overall strategy?
Are you finding other areas to duplicate the same results with a similar strategy or sticking with TT? (If the numbers still stack post market movement?)

 

TT hard to get Deve ATM that stacks up well!

 

End values on new units/townhouses not increasing at all in the last 12 months is the reason.

 

Hi Lisa

It's not making too much sense anywhere unless you pick up land at right price or can do something creative.

Thomastown - You need to build 4 on the site for the numbers to stack up with returns around 20%. Yes, there is a market for 2 bedders in this area, FHB/investors, low entry level.
I would say from when I purchased 18 months ago land has gone up significantly. End values perhaps 10-20k increase, not huge, though with the way Melb market is moving, I think we may see a further jump in Spring.

MTR

 

Any updates for Thomastown / Lalor / Mill Park ? Is the market still hot ?

 

This sold at auction today for $675,000 in Thomastown

https://www.realestate.com.au/auction-results/vic.html?rsf=edm:auction:vic

 

High density zoning!

Ripple effect is doing its thing..... Priced out buyer/Developers buying in thomastown.

Deve sites are going for good price.... End product is next!!

 

Sold Price for 18 Derrick Street Lalor Vic 3075

Surely this is not a development block? They are selling in the 5s for bigger.

 

yes my property was in high density as well, prices have soared
too late am building

ripple effect... Reservoir now Thomastown, Lalor ... cheap considering proximity to city. By the time it's discovered by others it will be too late as prices continue to rise

 

I know back in 2010 some houses in Thomastown were fetching over $700,000! Residents there right now know that the market has moved up and are expecting higher prices. Just want the bloody Costco to open in Epping, been pushed back again and again, would definitely help carry Thomastown/Lalor/Epping along nicely when it does. Some commercial opportunities around Thomastown station as well.