Would you buy a house on 450m if it came with plans/permits?

Discussion in 'What to buy' started by Otie, 18th May, 2017.

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  1. Otie

    Otie Well-Known Member

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    I had been priced out of a suburb recently, but one has popped up for sale within my budget with plans and permits to build 2x double townhouses.
    Usually I wouldn't have been interested in anything less than 600m, but this seems to appeal a little more since I know they can do this on it. Its also on a main road which I think is a benefit as it is a busy road near infrastructure (hospital/shopping centre etc) thinking possible re-zone one day?
    Im looking long term anyway, but would be nice to have options to dev in a few years if I could keep renewing the plans.
    Is it crazy to buy something on such a small block or is it ok if they can fit two tH on it?
    Its priced 100-125k cheaper than something on a 600m block.
    Its in Melb
     
    Otie, 18th May, 2017
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  2. wylie

    wylie Moderator Staff Member

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    If that is what you would have tried to do on a larger block then why not?
     
    wylie, 18th May, 2017
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  3. Marg4000

    Marg4000 Well-Known Member

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    Just be aware that if you do not develop within the time frame if the existing permits then approval may not necessarily be granted in the future. Sometimes the rules change.
    Marg
     
    Marg4000, 18th May, 2017
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  4. wylie

    wylie Moderator Staff Member

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    This is important. I had a call the other day from an agent wanting to know what we are doing with our block. He said he knows of an approval that was allowed to lapse and the same approval conditions apparently are no longer able to be obtained.
     
    wylie, 18th May, 2017
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  5. thatbum

    thatbum Well-Known Member

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    Townhouses on a main road...? Are you sure its an advantage?
     
    thatbum, 18th May, 2017
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  6. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    From what I have heard always take longer to rent or sell if on a main road. A road that is out of earshot of traffic noise would be a better choice but also close to the "action" but not to close :)
     
    Colin Rice, 18th May, 2017
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  7. Otie

    Otie Well-Known Member

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    Hmm I think will follow my gut and abandon this one. Not worth the worry, if I were to develop it wouldn't be for at least ten years anyway. Back to the next suburb out where I can afford a house on a full sized block
     
    Otie, 18th May, 2017
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  8. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

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    One of the brokers mentioned the other day that financing is problematic if there is a DA in place because the lender may decide it's a commercial deal (higher interest rare) rather than resi.

    Something else to remember is that the vendor may have gotten the permits and then realized the build would not be profitable.
     
    JacM, 18th May, 2017
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  9. Otie

    Otie Well-Known Member

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    Well I can't see it being profitable in the market today, would have only been worthwhile when the land value goes up more
     
    Otie, 18th May, 2017
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  10. melbournian

    melbournian Well-Known Member

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    450sqm is actually not small. it is actually quite large..ppl subdivide 600sqm into 3 TH or if in higher zones maybe even 5-6.

    Main road is not really an issue but also depends where it is . if you think cotham road with the trams and noise in Kew, Whitehorse road (box hill, mont albert)

    That auction I went to in albert st, preston (have more than a 100 ppl rock up in auction) which is on a main road where trucks come and go.
     
    melbournian, 26th May, 2017
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  11. JK200SX

    JK200SX Well-Known Member

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    A friend subdivided a 200m2 block in the old part of Epping and put up two 2 bed townhouses! Currently renting at 310 each.
     
    JK200SX, 3rd Jun, 2017
    #11
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