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WA Cheapest sub-dividable land?

Discussion in 'Development' started by LifesGood, 12th Jun, 2016.

  1. LifesGood

    LifesGood Home Building & Development Consultant Business Member

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    I noticed another thread about development blocks in Melbourne under $400k.

    Where in WA can you get cheap and cheerful development blocks and actually make a decent return?

    Armadale region? Midland? Regional areas?

    I've never really looked outside of my own neighbourhood which is pricey (Joondanna, Leederville, North Perth etc), so it would be interesting to hear stories from other parts of Perth & WA!
     
    Perthguy likes this.
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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  3. thatbum

    thatbum Well-Known Member

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    The "actually makes a decent return" is the hard part I think. Hard to say in the current market.
     
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Under $300k duplex blocks:
    Piara Waters
    Harrisdale
    Wellard
    Kwinana Cassia Glades (some under $200k)
    Clarkson
    North Clarkson/South Yanchep (Butler, Eglington blah blah)

    ** decent returns are in the eye of the beholder :p
     
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  5. Blacky

    Blacky Well-Known Member

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    Heaps of (cra*) in Mandurah.
    The place is flooded with R40+ zoned blocks with good sqm but there are so many of them, and if they all build with apartments well it will be hard to sell/rent.

    'decent returns' will be a challenge.

    Blacky
     
  6. MTR

    MTR Well-Known Member Premium Member

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    Medina
     
  7. MTR

    MTR Well-Known Member Premium Member

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    Hi Jess
    don't know what the zoning is, but the advert states, retain and build at rear, in this case I doubt there would be any money in it, and you would not want to be retaining this home

    MTR:)
     
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  8. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    You'd be mad to build apartments in Mandurah - lots from 2008 still around :)
     
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  9. MTR

    MTR Well-Known Member Premium Member

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    Perth is high risk market at the moment, I posted recent stats on rental market and also the oversupply of housing/apartments
     
  10. Aaron Sice

    Aaron Sice Well-Known Member

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    Look to unusual areas that tend to be undervalued.

    Cannington / Queens Park is an odd one for example. Some properties are just plain undervalued because the house is crap. Next door the house is new and disproportionately more.

    20k on the house and a mowed lawn and you have something that closes the gap and provides for a subdivision potential.

    Other suburbs that has this kind of abberation are Vic Park and Mosman Park. 150k difference between lots based on the fact one has polished boards an IKEA kitchen and a nice lawn, the other has carpet, multi coloured interior, original kitchen and waist high wild barley for a yard.....same zoning, same lot size.

    You just need to be creative about your subdivision pattern and your product (NOT multi dwellings). A few forumites now know my secrets here! Your Lord St query was a good example here, but there are more!

    Otherwise, Canningvale has some pearler lots pop up. Established sales market for most product but still most lots are 400k which is prob why Harrisdale / Piara become more attractive as mentioned. I'm turning 30% in Piara Waters so it can be done.

    A
     
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  11. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    I was actually thinking about Queens Park yesterday. What product if not multi-dwellings?
     
  12. sanj

    sanj Well-Known Member

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    Absolutely, to be honest that's always been the case, apart from a couple of silly periods where you could've taught a monkey how to make profits. Problem with those silly periods is that it makes some people myopic or just plain lazy


    Personally times like this are when you get to see who knows what theyre doing and who doesn't, those who do will see some decent returns and not much competition. Those who dont will lament that you no longer can buy a site, pay a builder to put 3 villas on it, effectively not do much more than select tiles and colour of carpet and turn a decent profit.
     
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  13. sanj

    sanj Well-Known Member

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    Btw in case the above post is misinterpreted, i dont have an issue with anyone for taking advantage of obvious opportunities in the past, it was smart to do so. My point is that the auto-pilot small development money isnt there atm so there has to be a different strategy applied
     
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  14. Aaron Sice

    Aaron Sice Well-Known Member

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    The entire plethora of missing middle housing! images.jpg

    Seriously many houses have great bones and only need a few tweaks to change their use.

    Subdivision patterns are limiting if you want to retain these homes, and capitalise on the zoning, so think different!
     
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  15. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    So what are multi-dwellings then? Terminology is throwing me off :) Are they just detached units, where duplex for eg are attached?
     
    Last edited: 13th Jun, 2016
  16. Big Daddy

    Big Daddy Well-Known Member

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    Mandurah needs retic sewerage to subdivide ? Watch out for clay in armadale and midland
     
  17. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Re Mandurah, only in certain parts. Old Madora Bay is one of them.
     
  18. Aaron Sice

    Aaron Sice Well-Known Member

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    I will try to explain but sorry if it doesn't translate well.

    Not everyone can afford their own slice of heaven. We know that. This affects what can / can't be absorbed by the market in any one given area.

    Likewise, not every developer or property owner can afford to provide for appropriate yield on their property.

    Underdevelopment affects affordability in the long run (less appropriate housing on too-large a footprint drive up median prices) but that is all some developers / property owners can afford due to construction finance triggers, the nature of built strata (MDs) etc. Most developers, however, are limited to underdevelopment because it is less intensive on the finances and time and paid-for-expertise.

    This is why a duplex in Piara Waters might turn more profit than a small apartment complex in North Perth. The downside of this scenario is that Murdoch students and Nursing staff won't rent in Piara Waters / Banjup like ECU students or Joondalup staff or Police cadets wont rent in Clarkson - they're close to major employment and study hubs but just miss the mark.

    That ^^^ is why appropriate product NEEDS to be in the right areas. Shift working nurses and police officers and masters students need sharehouse living like a hole in the head.

    I can hear the "yeah, but, nah" s from here - this is just ONE example from a FEW (definition being "not all") demographics that require appropriate housing.

    Bring that line of thought into the city a little more. Discuss what is needed with yourself as a devil's advocate. Talk about where the train line goes to and from the Queens Park station. Who is likely to live there etc.

    Now look at your product. Can you, the developer, match what they need by providing the same product in a different way? Can you see the intrinsic value of your property and it's improvements? Or do you see those improvements as an obstacle, to be demolished or renovated for a driveway, or more product of the same? Why do more of the same if that's the market's headache in the first place?

    This is my point. I am changing returns for people by redefining existing structures; and that doesn't mean just renovating existing homes.

    Resi lend, less outlay, more dwellings for the money that value up comparably.

    Winner winner chicken dinner.
     
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  19. Aaron Sice

    Aaron Sice Well-Known Member

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    I'm also WAAAAAAAAAAAAAAAY OT so maybe we can chat over PM.
     
  20. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Email is better :) That's really helpful, thanks Aaron!