WA Dev Sites, are there any?

Hi all,

I have a few options to invest some money into. One of those options are purchasing a block in WA and doing a duplex/triplex keeping the front house. Preference would be a corner block. The numbers would have to stack up realistically, no assumptions or speculation.

I have access to about $1,000,000.

Do you think there is anything out there that I can make at least $200,000K on after tax? Is there anyone on the forum able to source blocks of this nature?

I'd probably like to sell all the properties on the site.

thanks
Dave

 

@Westminster

 

Does the $1m include the site and construction?

That would be a low total budget for a triplex and would probably increase the risk as it would need to be in the outer ring of Perth (20-30km) which is already hammered by downward trends.

If it was a duplex then maybe not so bad and could be in the 10-20km ring - maybe even closer

200k after tax (GST too??) for a $1m spend would require a project that is over 30% gross profit and that would be very very very very hard to find.

 

200K inc tax.

What about buy, split then sell empty blocks?

 

Even harder to find I would have thought.

 

I'm seeing this a bit lately in Duncraig and Kingsley. The developers are selling the land before the house is demolished.
Have seen a few in Carine also but selling after demolition.
Edited error!

 

It would be hard to do and you would need to think outside the box. I posted this one before but you may have missed it. It was marketed as a duplex block but was ultimately divided into 3. This may not be possible under the new DC 2.2. The front renovated property has now sold but I don't know how much for.

12 Whiteside Street, Cloverdale, WA 6105 - Property Details

reiwa.com - Lot 1/12 Whiteside Street, Cloverdale

reiwa.com - 12 Whiteside Street, Cloverdale

 

I think the money I've got would fit a duplex block if building, and duplex or triplex if selling land.

 

So $1m spend, $200k gross profit would be ok? That is more doable. 20% deals are around, not plentiful, but around

 

Yeah $200K gross is fine as long as thats realistic. Feel free to PM me.

Of course more $ would be better

 

A number of years ago much of the land was rezoned around the older areas close to the train stations on the Perth-Armadale line, as you get out further the price starts to drop and many of these blocks are 1000-2000 sqm , some still have houses that are quite livable, others are completely rundown .
Some off these blocks were selling for about $400-500 K ++ about 4 years ago, at the moment maybe $300-$350 K .Its a cheap time to buy them, just not the best time to develop and sell.
And you would really struggle to rent them out(the old house).
If you could live in the old house for a while it might work.
5 years ago these older houses were continually getting demolished with 5 or 6 apartments going up in their place , that all come to all halt a few years ago, and once the market starts to really improve , then it will be on again .
We have noticed in the last few months more of the old houses are getting demolished and the blocks being prepared for subdivision or apartment builds.
These are generally within a 5 min walk of the train stations and the the older blocks that were developed prior to the early 1970s .

 

Yep, new DC2.2 is specifically worded to prohibit this sort of staged/incremental development.

 

Hi Hodgo,

I am a builder and develop my own projects in this range. Certainly, there is plenty of scope to do well in little deals like this. Especially if you can pick up a retain+build, or a corner lot where each lot has a street frontage. I'll PM you a couple of addresses of deals within (or close to) that budget, one was sold as blocks, the other will include construction component for a triplex (approx 580K).

Sourcing the deals is always a challenge though. I regularly peruse through realestate.com and set up automatic weekly follow ups with agents in the area to remind them of my 'buying criteria.' I have even done letterbox drops to specific addresses that I have seen come off the market to score a deal

Regards,
Angad Singh

 

Hahaha how things change in a matter of hours.

I now have access to $600K, this includes $200K cash. this changes things a little me thinks

 

Casino?

$600k is plenty to get started.

 

I have a dev site in Marangaroo available for a reasonable price...

 

Is the advantage of corner lot with street frontage due to lower land size requirement? Or due to more demand for property with street frontage? Or is there something else that makes the corner lots more advantageous?