I was just going to take the easy option and do a smash and grab. Knock it down, chain the trees and build 2 @ 4x2x2, sell them cheap and quick and pick up close to $150k before tax for 6 mths effort.
Okay so you reckon thats a better option than holding, cash flowing and ripping the equity out?
Close to the river, flood risk?
I have 2500m2 slap bang in the middle of Kingaory with high density zoning that I intend to develop in 3-5 years. Its got a crappy house on it now and nearly washes its own face, not in a rush to develop so have plenty of time to get the right plan going. Also I will hold it as well for the cash flow post development.
What budget figures do you use for new build, ie cost per m2 and what is the total area of your proposed single 4/2/2 house?
but that implies there is little chance of growth in the years to come either.
Dear oh dear The REAL growth is made in the purchase and creation of new land and new houses - not in simple buy and hold Who cares if there is no growth over the next few years when you pick up 40% or more by redeveloping.
Dear oh dear
40%? You have never done one before have you? You have a bit of a let down coming on that score I am afraid. You might achieve 35%, and that if you do a lot of the work yourself. If you are not a builder though the margin will be a good deal less.
LOL, I think you need to read my previous posts before making such stupid comments
Bardon
25 Aug 2013, 10:35 AM
Okay so you reckon thats a better option than holding, cash flowing and ripping the equity out?
For me at present it is. I have a 2 (or 3) stage project slowly underway at present that will either require: Taking current LVR's to a level I would not feel comfortable with Selling of existing properties that are massively cash flow+ or I could just do a quick smash and grab.......or 2.
Quote:
Close to the river, flood risk?
No where near and none whatsoever
Quote:
What budget figures do you use for new build, ie cost per m2 and what is the total area of your proposed single 4/2/2 house?
I have been paying around the $800 - 850m2 and have a war chest with a couple of houses worth of new goodies acumulated at auction over the years House size would be around the 180 - 190m2 under roof
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
Thanks for the feedback Frank. I will surely come back to you before I go ahead with my development if were both still around here.
With respect to my development I have three options, finance shouldn't be an issue when I commit and I am looking for cash flow as the main investment driver, initially.
Leave the existing house there, renovate it, and set it up as separate detached house block. Build five two bedroom units at the back. Strata titling not necessary in the beginning as I will hold but they will be set up so that it is possible in the longer term.
Knock down house and put up seven units.
Knock down house and put in say 5 or 6 three bedroom two storey townhouses.
Very centrally located block next to and walkable to everything. The area itself is the lowest socio economic zone in Australia although there is a diverse employment, council headquarters, Tarong power station, medical, education, food production, doesn't flood and surrounding areas are being inflated due to the coal seam gas industry. Although there is no direct impact from it in Kingaroy yet.
I cant remember exactly off hand the drawings are not here, its wide enough for a house and an easement down the side. Approximately 25m wide X 100m deep. Flat with a gentle run towards the street.
That seems like a very big development for Kingaroy. There are only 6 units/apartments/town-houses in Kingaroy and surrounding areas at 200+ for rent at current.
That seems like a very big development for Kingaroy. There are only 6 units/apartments/town-houses in Kingaroy and surrounding areas at 200+ for rent at current.
Yes understood thanks. Its certainly not high end thats for sure, I have done the numbers on 200 p/w rent and it works on a fully financed keep the house and build five two bedder option. There was a lot of NRAS houses hit the market last year which deflated rents but they are all occupied now. no more coming and that downward effect on rents has stopped.
If finance is not an issue and given the long term nature of this one I don't want to unnecessarily skimp on the development. I don't foresee any vacancy issues based on where it is.
mel
25 Aug 2013, 12:55 PM
Sound like a fantastic block. Im guessing you would run the driveway over easement? Is the easement close to the boundary?
-just getting some more info for Frank
Yes the driveway would run along the side boundary. The existing house sits front left as you look from the street and the driveway runs up the side to open up to the five two bedders with parking.
I have spoken to council they are okay with it, I originally wanted to squeeze six up the back but they said no.
Also the block next to mine was purchased by an investor and he cleared it but hasn't done anything with it. Its virtually the same and he approached me about doing a larger JV combing both, thats a long shot but still there as he is looking to flip them once finished.
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