Hi guys,
I need to onsell a vacant block to free up some cash but I can’t decide which block to sell.
I would be making the same amount whichever block i sell – so the question is which block will appreciate more in the long run?
First block – 500sqm in Wellard. Currently worth around $160,000
Second block – a 5 acre block in Nilgen (lancelin). Currently worth around $200,000
I would appreciate any opinions from the Perth Forumites.
Thanks Aly[biggrin]
Sell the Wellard block ( coz I may want to buy it!)
Can you de-tail how long you have had both and what was the purchase price ?Also, was was the purpose of buying them in the first place ( ie what was the initial object and was there an exit strategy ?)
Has the lancelin block got any potential for future subdivision into smaller blocks ? This may have a big effect on its future value.
As an example we bought some acerage in Qld that was effectively a cow paddock, but it was zoned for rural residential.
Its market value ( purchase price) was $220k but if you took it to its highest value ( as the subdivided land) its potential value is $2.44 mil.So this may apply to the Lancelin block as well.
Wellard will just appreciate along with other urban blocks in the area. If the boom continues it will probably end up close to $200k.But if you have to sell one and decide on Wellard, I was serious that I may be interested.
Good Luck which ever way you jump
kp
Hi KP,
Bought both blocks around the same time (August 2005).
Wellard bought for $118,000 – Nilgen bought for $158,000
Strategy was to just make money onselling blocks. I guess if we do hold onto wellard though we may build on it. Titles for both blocks are due next month….
I heard that the Nilgen block may have the potential to be sub-divided into 2. Not 100% sure on this though and don’t know how I could find out. Any suggestions?
Do you really think urban blocks in Perth could hit the $200k mark?
Still not sure which one to sell…. help!!!
And yes if i decide on the wellard block I will let you know
Thanks, Aly[biggrin]
Hi Aly,
kp is right about the zoning of the Lancelin block, check with the Local Government about the R-Code and whether any rezoning is planned. If you can subdivide into 2 or more blocks, that would be the one to keep and develop.
Otherwise, I would say hang onto the Wellard block. This area is still booming, even more so than the greater Perth region. The new train station is almost complete (though you never know with all these delays!!), and it is definitely feasible for a good sized block to go past 200K. Most other urban areas within 10kms of CBD are already well and truly there (have a look at doubleview/innaloo, tuart hill, willagee, lathlain etc). These are all still relativley cheap suburbs for houses (at or near median for Perth) yet most green title blocks 300sqm+ are 220K+.Ill buy your Wellard block for 160K as well please[exhappy]
Competition…..oh bugger.
Well I was first in line even tho I didn’t camp out so I get first pick right Aly ?
Well it seems like you don’t have a concrete plan with either !! ie..you planned to flip the blocks for a profit but now you are not sure what to do !Regarding the Lancelin block, you can contact the local council and ask them, and even if they say ‘NO’ now does not mean you can’t go ahead in the future.
Also, you can bypass the council and go direct to DPI with a request to subdivide.
They quite often overturn council decisions .
I think you need to spend a bit more time doing some homework and some running around.But if you planned to flip for profit, please flip in my direction ( wellard only pls)
Can email me if you would like to discuss further:
[email protected]Cheers!
kpOhhhh… an on-line bidding war..[biggrin]
Back to you Chris
;o)
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHaha,
I would really like to bid for a block in Wellard, but I have a few other things on my plate (read: budget) atm [biggrin]Definitely great CG prospects though!
Good luck Aly
Hey,
Don’t worry KP you are definitely 1st on the list if I decide to sell Wellard.
Will have to do more digging around re: Lancelin.
Sorry KP – what does DPI stand for?
Will let you all know,
Aly[biggrin]
From the responses it looks like Wellard would be easier to sell than Nilgen. If you are happy with the profit on Wellard it may be time to lock in the profit even if it leaves something there for the next person.
If its an emotional decision then choose one and then toss a coin to confirm – seems odd but you’ll soon realise which one you want to keep and gut feel is often a good way to decide things.
best of 3, no! 5, no 7…..
Phil
Hi Aly
DPI = Department for Planning and Infrastructure.
Strata title subdivision is handled by the local council but if you do a green title subdivision the application has to be lodged with DPI.
Sometimes the council will knock you back but DPI can over rule them ( ie…the minister for that Dept)and you can still get your subdivision through.A good surveyor can explain the process to you should you decide to go the subdivision route…
( Sell me Wellard…!!! I am in Perth till the end of next week )
kp
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