Wanneroo rezoning gazetted.

I don't think many were. Makes me wonder if there will be a slight surge in pricing once it clicks.

At the same time the prices already went north a bit a couple of years ago for the proposed rezoning...

 

Did my sums crudely over the weekend, pretty borderline doing my subdivision. 16%-ish based on figures I had ($704k outlay, $820k end value). Would then sell existing front house, move into new rear with a lower mortgage/better LVR/better cashflow for my own business I wish to get fired up.

Interestingly this sold in Balga (most comparable suburb IMO).
Sold Price for 2/9 Treen St, Balga, WA 6061
Also Blackmore Estate in Girrawheen pricing:
LandCorp - Blackmore Park Estate - Land for sale

My rear battleaxe block will be 300m2 + driveway. 390m2 total or thereabouts. At a stab, possible end value of new lot would be $190-$200k? Somewhere between Balga rear battleaxe value and new lots for sale in Girrawheen?

Throw some thoughts at me and point out my foibles if you can. The rezoning is done and I want to have a crack if the numbers stack up. This place is my PPOR, so also ok to play the long game if the numbers arent there.

 

The prices with zoning have already been built in from what I have seen, in other words we had the increases due to the rezoning. Same as other areas, they don't tick up once zoning occurs.
Prices have actually dropped recently and I know this from someone who is selling and what they achieved on a full block. Areas wont rise if markets in general are falling.

 

Can you itemise how you achieved end value of $820,000, I don't come anywhere close to this???

If you are retaining the original home these are very heavily discounted in similar areas because in the main buyers want new homes, there is plenty of evidence of this in Balga, very difficult to sell and they need to be nicely renovated, and elevations need to be very swish.

Same as rear blocks, it harder to find buyers for rear blocks with original home, once again buyers like new in these areas, therefore discounting is required.

Dont mean to be negative but I am giving views based on past research.

MTR

 

Nope this is what I need to hear. I guess being too optimistic is a fools game @MTR I am guessing I have gone too high on both then. See below anyway:

$350k for original front house and $470k for new rear 4x2 design I have mocked up is where my numbers come from for end value. Hard to gauge as Marangaroo originals on full blocks seem to sell for more than Balga from what I can see?

Below is where I went to start getting some figures together. My 3x1 is my PPOR, new bathroom, painted, carpet, blinds, new front elevation via reno and landscaping, split system and ducted evap etc. Kitchen isnt new but have spruced it up. Majority of work done by myself, would like to think it will present as one of the better ones.

Recent 4x2 marangaroo sales on full blocks:
Marangaroo, WA 6064 Auction Results & Sold Property Prices in Marangaroo, WA 6064 with 4+ bedrooms (pg 1)
Recent 3x1 marangaroo sales on full blocks:
Marangaroo, WA 6064 Auction Results & Sold Property Prices in Marangaroo, WA 6064 (pg 1)

Stanstead had a few 3x1 sales and are on 400m2 to 500m2 blocks. Seem to be high $300's. Mine will be 310m2 or thereabouts.
Sold Price for 20A Stansted Crescent Marangaroo WA 6064

Balga 3 bedders (a lot of new stock to sort through):
Balga, WA 6061 Auction Results & Sold Property Prices in Balga, WA 6061 (pg 1)

Couldnt really located 4x2's on half blocks on Balga much? Marangaroo 4 bed seems to be the most sough after, hence I was looking at putting a 4x2 at the rear? Balga 4 bed options:
Balga, WA 6061 Auction Results & Sold Property Prices in Balga, WA 6061 with 4+ bedrooms (pg 1)

Edit: Found this thing in Westminster. Same block size I will get with 4x2 at rear? Guessing Westminster sells for more than Balga.
Sold Price for 17A Pycombe Way Westminster WA 6061

 

I think your figures are a little too optimistic, especially in current market conditions, and your links makes it even clearer.

400m2 - 500m2 is much larger than your lot.

Marangaroo also higher median house price

I would have thought around -

$325,000 for front house, once again it would be dependent on location, if West of Girrawheen, closer to Wanneroo it would be more desirable.

I know full block//houses selling for somewhere between 350k-380k now/today.

Rear house on 300 m2 perhaps $400-440K??
your competition is new stock, in the new estate, would a buyer pay same price for your property, yet its at the rear, with an original home at the front and much smaller land component?

I come in at end values at around $765,000 and that does not take into account holding costs, sub dividing costs of around $25,000 and renovating original home if required, fencing, and carport at the front.

These are just guestimates and perhaps on the conservative side? but I can only work on what I know

MTR

 

Yep you are going to know more than me on it anyway.

If this is the case, I may as well sit tight. 7 years 9 months to go on the mortgage at current rates (prior to drop) so ill keep chipping away. Front house already has carport and a 6m2 store. Will just be fencing, of which I want to try use the garage and laundry walls of the design I have done to get the most of it.

 

I notice you are all talking about retaining the front and building at the rear. But my understanding is that the standard 692sqm blocks now zoned to r40 allow for 3 new dwellings. To weigh in on the 'what to do next' questions - my own thoughts are to wait until the market starts picking up again and sell to someone who wants a liveable/rentable property with a view to developing it themselves in the future. I'm guessing (hoping) this will be the second half of next year.

 

Put one lot at the rear, leave front house on 'duplex' lot.

See Doubleview / Innaloo.

 

okay, but most blocks are 692sqm with an old brick veneer house in the middle. These can be demolished and 3 new houses built.

 

Yes they are triplex blocks. Some of these guys just want to do a retain of a liveable house and build behind. Sometimes the sums work out quite well that way and they can continue to receive rent from the front house whilst they build in the rear.
It's all about budgets, amount people can borrow, strategies and risk management.
The blocks actually have many many scenarios that would work
1. retain and sell rear block
2. retain and build in the rear
3. retain 2/3 of the block and build on 1/3 so that the front 2/3 can have 2 houses built on it. (what Aaron said above)
4. demolish and sell off 3 blocks
5. demolish and build triplex
6. demolish and build apartments if they are in the right location
7. demolish and build four single bedroom dwellings
8. keep as is and sell with DA
9. keep as is and wait

A triplex on 692sqm is doable but it will be very very squishy and one may need to be a single garage or maybe two storey to make it work well. It's 40sqm less than the triplexes in Balga/Nollamara which are 728sqm - 40sqm doesn't sound like much but it does impact design quite a bit.

I think everyone that has bought there in the past 5yrs has chosen a liveable house to wait it out. I'm not sure how effective #9 is for now as most of the growth in the area was on the proposed rezoning hype and now that it's happened there probably won't be that much growth for awhile.

 

My house sits on the front RHS, so perfectly situated.

Plus good luck getting 3 on 692m2 when you factor in a common driveway and you are only allowed one crossover.

 

3 double story
728sqm would be the limit for 3 single storey 3x2’s and even then you will need a good designer(unless it's a corner lot) . I like min 760sqm for r40 in this scenario

 

Or go single garage from all of them

 

As it happens my own block is 769sqm (I inherited half the public access way from the council some years ago). So I'm happy with putting 3 on that. I was just curious why people weren't looking to build to the max allowed on 692sqm, but I see that would create very small dwellings. Thanks all for responses and let's hope the perth property downturn doesn't drag on like the gfc

 

Nice size! Sounds like you've owned the block for quite awhile?

 

About 14 years and waiting nearly all that time for rezoning. Shame it arrived in a downturn, but that will pass.

 

Should put it as a premium too if you do develop. Larger house with double garage or extra bedroom/study.

As Westminster mentioned, growth seemed to have happened 2 or 3 years ago. I still think long term it is a good spot surrounded by higher priced suburbs (Greenwood/Hamersley/Landsdale/Darch).

If Metronet ever eventuates and Mirrabooka gets a station it could also help.

 

It is a shame, I have looked at the figures, triplex wont stack up either.

Unfortunately not much choice, selling anything in this area now wont be too great.

 

Long term I think you will be fine, it ticks many boxes.

I sold my 3 prior to the crash.

All the best

MTR