SA What Would You Do With Excess Land?

Hi guys,

Just looking what you guys would do with the excess land behind the following property (+1200 sqm)?

Picture of property


Cheers,

David

 

Hi Wylie,

I'm assuming you could since there is a nearby property that has the following plans for another dwelling:

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Do you reckon this is a good deal for $235,000 with potential to rent for $400-440?

 

Yup. Spot on. $235k purchased price for both, and each rents out for $200-220 per week, but it's in a bit of a rougher neighbourhood, in Elizabeth SA. Not sure if there is going to be issues with the tenants though e.g. damage to property, not paying rent. Has anyone invested in this area or have any investment there now?

Cashflow might be good, but I don't know about capital growth. Maybe the new buyer of the Elizabeth Holden Plant will invigorate the area, create more jobs, and cause nearby properties to increase in value? What's your thoughts on this?

 

A semi pair for 235 will be pretty rough condition, in a really bad street/pocket, or maybe both

 

Hi Dave, yeah... its in a pretty rough condition, but could easily freshened up with floorboards, a fresh coat of pain, and maybe a fence for extra security. Would you be able to find reliable tenants to pay rent? Would you be able to sell the duplex individually for $150-165k?

 

You can get decent tenants if you have a decent end product. Bear in mind semis are for the lowest of the low when it comes to the tenant barrel. Most good tenants will want a house.

As for selling individually depends on the titles

 

Some of those are sold as being on one title, some as 2. If 2 then yes could sell one. If all on one you'd have to subdivide first which is not worthwhile.

Doubt you could do much with the land while its standing. But if demolished you could probably build 3-4 dwellings.

At that price point I'm guessing they're in pretty rough condition and in a bad pocket, which attracts awful tenants. And semis attract bottom end tenants as it is. Dont do it if you care about your sanity.

 

Elizabeth has been in the paper a bit this week. Holdens closure and unemployment rate of 30%.....Many people moving out to find work elsewhere (or retrained etc)

 

I doubt it. Most have been there for years and so are getting substantial payouts and will retire. Govt is paying for retraining for some and rest will go to shipping industry.

 

Thank you for your advice D.T.

I guess it might not be worth investing the extra cash to subdivide or build another dwelling

Just seems like an awful lot of land not being put to good use

Maybe the tenants could grow some vegetables or something in the backyard

 

Just having space to enjoy and look out at is 'good use' I think.

 

Good point.

Maybe play cricket in the backyard and have a BBQ.