Just thought Id run this by you.Think its a “No Brainer” but perhaps Im missing something.
Just put an offer on an Esplanade Property here in SA.
800mtrs land
Shack livable/rentable has been rented $250/week
40K from CBD
Asking is 475K
Looking to subdivide and sell or sit and develope later.
Negative gearing is of no concern as I could do with it having 8 positivly geared.There is a sister property 500 mtrs away same MO(Shack)1100m2 asking 620K
Courtyard type blocks of 400-500m2 are on the market at 260-350k and there are 4 close by.Last sold for 260K
Courtyard good quality developements are selling at $550K on a 200m2 better class dwelling,on 500m2 of land.
Im actually inclined to think the asking is not out of the question.
Only minor reservation(and only cause its Esplanade)is that there are around 10 property’s vacant land and House and Land for sale on this stretch of Esplanade.
Sales are slow but vendors are not shifting on price (Im optamistic with mine!).Thoughts?
John
Hi John,
What is the council’s opinion on subdivision – are they for or against further subdivision of avg sized blocks? Is the gain actually worth the costs/effort? Are there any caveats over the block regarding development? Is land tax going to be a killer?
Personally I think the block is quite small for splitting into even smaller slices, but I do not know the area.
What is your opportunity cost? Could you make more money by investing elsewhere than by doing this particular deal?
Thanks for the reply.
Council are fine in this area with subdivision.
Im not looking at Slicing it up immediately.
Planning to hold and more than likely develope 2 good sized 3 bed townhouses.Esplanade here (In this small stretch of beach)is undervalued relative to beaches both North and South of this location.I cannot see why as it is serviced well by freeway and has classy suburbs urrounding which are selling well.
I should mention that I am a builder as well(Civil Construction more so than residential) so my developement costs are around 15-20% better than most.
Think there is a good drink in it but yes I definately agree re size of the block would much prefer 2500meters but show me a site on the Esplanade that size!
They dont come up all that often and those that do are too good to push over and 100-150K more so not a proposition— well not in the next 5 yrs.
Thanks
For your comments
johnFor those interested offer rejected so let it pass,there will be another.
John
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