WA Perth Market 2015

People that can afford their own expresso machine and grind the best beans.
I can't see how the housing is overpriced, all that congestion you speak of is traffic heading in a westerly direction.

 

Sorry champ but you're WAY off.

original listing was for 750 sqm.

lot has been subdivided, rear portion sold.

front house was reno'd and is now up for sale on 450 sqm odd of land.

indicates nothing other than a subdivision and reno.

 

Considering most agents are selling bare land in Wembley / Highgate / North Perth / South Perth for 2000 per sqm or more, that while Riverfront looks like good value.

 

Onslow St?

 

What about this one or the other one?

Sold Price for 14 Whitfeld Street Floreat WA 6014

 

It will be interesting to see how much this goes for if it sells... potential 6 unit site.

42 Campbell Street Rivervale WA 6103 - House for Sale #121286598 - realestate.com.au

 

Maybe. Not sure if city of belmont allow the density bonus when trying to amalgamate lots like that.

 

I would only look at this if I could source the finance without selling OTP and it was cash flow positive on completion, otherwise its way too high risk in the current Perth market, oversupply in this area.

MTR

 

True. I should have specified "potential 6 unit site (STCA)"

But really, because it is out of my league, I didn't even look it up on CoB mapping. Ok, GIS search done. It is one lot already. Crisis over! R30 would be permitted.

The funny thing is that the lot next door is R20/40, so Housing Authority really got gypped with this one.

There is an oversupply of apartments in this area. 4x2 townhouses... not so much. There are a handful on the market. Asking price is high. Overpriced? Time will tell.

1-4/73 Surrey Road Rivervale WA 6103 - House for Sale #119095879 - realestate.com.au

I agree with you. In a falling market this is a very risky proposition IMO. Rent looks to be around $500 pw at this stage. Very low.

2/160 Fitzroy Road Rivervale WA 6103 - Townhouse for Rent #417001222 - realestate.com.au

 

ok, so will the rent from townhouses cover the mortgage ? I guess I would do the numbers on this in terms of what I would pay for the land. For me it's not a land banking exercise, market is too high risk to be holding negatively geared property.

Interest rates are on the rise and market is falling.

 

This is the sort of property I would consider OK, decent location, nice size block and don't need to extend or renovate immediately
57 Rookwood Street Mount Lawley WA 6050 - House for Sale #121066422 - realestate.com.au

 

No idea. Say you paid $1,200,000 for the land and spent $300,000 per townhouse on the build. That is $3,000,000 without demolition, subdivision costs, servicing, stamp duty, holding costs or anything. Interest on that @ 5% is $150,000. Rent in the area indicates $156,000 rent, so negatively geared from day 1. So either my purchase price is too high, my build cost is too much (or both) or the numbers don't stack up.

 

$1.2m for the land is reasonable, probably on the low side. Agree that numbers would be hard to stack up.

Good pickup on the R20/40 next door (well, half of it). That could be a strategy to the very patient ones, try for a spot rezone. Solid case to justify R20/40 for half the block at least

 

Joint venture: 2 people. Step 1, split the block into 2.

Then each person could build 3 and sell 1. I think the numbers would stack up then. But I doubt the land will go for $1.2. I think it will go higher. I should work out at what sale price it makes it worth it... if I could find someone to go halves...

 

Run those numbers by me again?
Im struggling to understand your POV on how half would work better than the whole?

Blacky

 

How much land in those townhouses? Id rather pay 850k-900k for a double storey townhouse in Mt Hawthorn

 

You could potentially fit 17x Single Bed *(57sqm) apartments at R30. Prob have to go 3 storey to accomdate parking. Assuming 250k to construct and 400k to sell then your looking at $0 profit.

Maybe you could get it down to 200k each to build and 420 sell price, then its a 20% margin after interest

 

but you can't do apartments at R30 anymore - as of Oct 23.

even if you could - height limits at R30 would have been 2 storey, which means basement parking.

even then - $200k won't cut it per apartment.

even then - $420k for a 1 bedder in Belmont?

 

You cant do apartmennts there and even if you could theres no margin. Single bed apartments in rivervalw are selling for 300k in some instances, these are brand new units by desperate developers. 400k is a pipe dream

 

Thanks Sanj/Aaron