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Jenna 888
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@jenna-888
Join Date: 2013
Post Count: 6
January 25, 2013 - 6:19 am
Hi Kent. You excited my boring Friday! I am so excited to see everyone's replies The points you made a very logical and i can see how the $$$ result of a property choice can vary upon various factors.
I am a little confused by what you mean by higher land component value. Would you mind elaborating on this in a simpler way?
Also, when you speak about villas, I will not be able to afford a villa's within an inner city location (0-3km) from Perth CBD, so i would be looking at villa's or most likely even units 3-7km (or even up to 10km) from Perth CBD. Do these fundamentals still apply? By that i mean, is it wiser to use these fundamentals on an inner city unit over a villa a bit further out?
thankyou!
Jenna 888
Member
@jenna-888
Join Date: 2013
Post Count: 6
January 25, 2013 - 1:53 am
Thanks for your opinions Derek. It is lovely to see a site with people in the industry and with experience. What do you mean by suitable rent returns? I am amazed that a lot of comments received from this lean towards a subdivision strategy! I am trying to wrap my head around why there is not as much capitol growth potential in a inner city unit- I understand it is harder to add value and development options are nearly non-existent but isn't there that old saying location, location, location?
I would definitely be keen to retain the original house as long as possible. I do not think in the interim we would be able to afford demolishing it. I am setting up a meeting this week to talk to the local council about restrictions to make it a little clearer. I am also looking at the City of Wanneroo with the proposed new zoning that may come into effect in the next 2 years. Is that risky business?
Derek, do you think if we have paid a significant amount off the mortgage + its growth in capitol and with funds in an offset account that development may still be refused?
Jenna 888
Member
@jenna-888
Join Date: 2013
Post Count: 6
January 22, 2013 - 8:30 am
How exhausting is the strategy process! I really appreciate the comments. I hadn't thought about if the council would prefer higher density to maximize the space. Matt did the council 'prefer' you maximize the space with the option to decide what you wanted eg 2 dwellings or 3? i will definitely look into this. The real estate agents are definitely selling the land based on its development potential (I don't think there are many naive agents on this area) so corner blocks are a lot more expensive. The only corner blocks in a reasonable price are those ones on a slope. Is this a very bad move to get blocks on a slope?
Jenna 888
Member
@jenna-888
Join Date: 2013
Post Count: 6
January 21, 2013 - 11:58 am
Thanks guys! It's so nice to have a breath of fresh air on the subdivision strategy. The whole suburb is zoned R40 which is quite peculiar. If we were to go down that road, most blocks are 700sq+. I would prefer to retain the house and build. Although if it is a triplex potential and only have 2 houses on it?? My mum grew my brother and I up in Perth's western suburbs and she just doesn't realize there are other areas in Perth which are still ok!
Jenna 888
Member
@jenna-888
Join Date: 2013
Post Count: 6
January 21, 2013 - 11:13 am
Thanks Shahin and Jamie. The area that I am looking to subdivide in is 12km from the city. The area is picking up however there are still a lot of state housing and affordable homes (under 300k mark). The areas to the north, east, south and west are all a lot more dearer and I would hope the stigma of the area goes. Would you mind sharing your journey of how you started and what investment choices you made?