Hello Gary,

Good thinking.

This is exactly what’s happened to a neighbouring area.

Click here to see…

I brought these plans to council and they confirmed this could be achieved.

They mentioned that trees that had circumference greater than 2 metres needed council approval but apart from that everything seemed good.

So purchase price for the duplex is $235,000-255,000

Potential price for each townhouse is $300,000 x 4

Price to demolish, subdivide into 4 parcels, and then build 4 townhouses is the current unknown…

Cheers,

David

Another interesting find in the area:

Click here to see

New property being sold for $300k (thats probably the fifth I’ve seen so far)

Maybe there is a market for new houses in this area (5th one I’ve seen sold for that price range so far)

Hi Ethan,

That’s no problems at all.

The duplex was in Elizabeth South SA, and the area seemed pretty rough when I visited.

Rubbish and mattresses lying in the front yard of some houses, road signs being pulled from the ground, and the duplex had been broken into the week before with a squatter found inside.

Based on the photos posted online I thought a cosmetic renovation was all was to add a shower screen, bath vanity, and paint everything. It wasn’t until I inspected the property in person that I found that there were more serious issues with the property.

Click here to see Picture of Duplex

In terms of development potential, I visited the Elizabeth council with all the plans of the other development nearby and they said that was no problems at all, and similar dwelling could be placed on the site. Permission was needed to remove any trees with circumference of more than 2 metres though…

Click here to see nearby Development

P.S. Thanks for sharing the link on estimated construction costs

• This reply was modified 7 years ago by  David Thiu.

P.S. If you are wondering about the ‘inclusive of costs’ part I read it from the Siacci System:

“The $210,000 was actually inclusive of costs, that is, it included stamp duty and legal expenses.

The law simply states that when a title transfer from one person to another that stamp duty must be paid on that transfer. What the legislation does not stipulate is who must pay the stamp duty on transfer. So what we do is insert a clause into the contract that says that the vendor will pay the stamp duty on the transaction…

This is one of the clauses that we use for this purpose in our contracts

“The Vendor agrees to reimburse the purchaser the costs of stamp duty at settlement to an amount of not more than $XXXX.00″…

As you can see you are still paying for the stamp duty and legal fees but they are now included in your bank loan rather than coming out of your pocket upfront…

For valuation purposes it is important that you do not load the contract over and above the original asking price of the house”

Hi Ethan,

Yes, I think $720k is an offer that the Vendor would take into consideration, as he would like to move on and focus on his hospitality business where his returns would be far greater.

The units are separated by brick veneer, and a local builder is confident that the floor is concrete – however the only way to be 100% is to pay the Surveyor to check out the property.

Anyways, its no big deal. I’ve moved onto a Duplex: Purchase price $255k. Estimated rent $200/week each side. Will live on one side while I renovate the other side, and could potentially add another $20-30/week.

So good cashflow now, and potential for further growth later down the track as the suburb is undergoing Gentrification and has been zoned Residential Regeneration Zone. Recently a Developer has been able to build 4 townhouses on a Duplex site similar to mine and sell each townhouse for about $300k.

I’m thinking maybe 3-5 years down the track I might consider doing the same thing or onselling the site to a Developer. Would you know roughly how much it would cost to build 4 townhouses on a 1200m2 block?

Cheers,

David

Here’s another strange transaction

Kulbina Dr

Anyone have any clue what’s going on?

Ok, I’ll look into dropping into the local council when I’m back in Adelaide

Thanks Jaxon

My iphone died about a fortnight ago… Ended up getting a Samsung Galaxy Note 8 :P

So far so good, and it’s increased my productivity quite drastically

I really like the dual apps feature, and the stylus pen

Thanks for mentioning this Nigel – might have never crossed my mind was it not for your comment

Hi Benny,

I guess there’s not that much downside to just buying and holding the properties, especially since the area have 0.8% Vacancy rate, and only 30 minutes from the CBD.

The only problem is I don’t have the deposit, nor the borrowing capacity, and was hoping to gain control over the property with an option, strata title for maybe $50k, and then onsell them individually onto the market for a quick profit.

Considering that this block will require fire separation, and may cost $20k to strata per unit, might mean this deal might not be worth pursuing using this particular strategy.

Kind Regards,

David