I am looking at buying a block of land in a small group of 13 on the river in Maylands W.A. Most of the blocks have at least some view. Do you think the prices will continue to rise over the next 2 yrs and will we make more money if we build. If we build we will have to borrow around $400 thou and also borrow to buy somewhere to live for around $350 thou. does this sound like a good investment or am I off with the ferries.
Hi Tracy L
Just need a couple more detailsIs block green title?
What size is the block?
How far away from river?
What is the price of block with a view, and can u be built out?Cheers, Marisa
(Hard work never killed anyone, buy hey why take a chance)
Do you think the WA boom still has legs?
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
The average block size is just over 300sqmtrs. They are terraced, with 3 levels The front ones which are right on the river will be the dearest the next row have little views so they are the cheapest, the last row which are the ones we will try to get have quite a good view from 2nd story. They are expecting these to be around $750thou. $2000 a sqr mtr, I think the agent said. The area is lovely.
Yes I think the wa maket still has legs if you buy in the right postion. either water or subdivision. But that just my opinion and I don’t have any thing to back it up with.
Hi TraceyL
You would be looking at $225,000 for the block and around $250,000 for the house (approx 250-280sqm2 home), is this about right $475,000 and it will take approx 12-18 month build, would turnkey be around $530,000 (including holding costs), is this about right??
Before I signed on the dotted line I would be looking at what is currently on the market and comparing like for like. I would be wanting at least 20% margin.
The WA market may go up another 10-12% next 12 months, if not can u hold the property, this is what I would be asking??
As far as purchasing land and holding, I am not in favour of this strategy as there is no income to offset.
Just my thoughts.
At the end of the day it comes down to doing the research, I can provide some basic figures but it is up to u to get into the nitty gritty to make sure you are making a wise decision.
As far as Maylands goes this is a great area, close to city and river, however there are also many undesirable pockets, lots of highrise units/flats, I am sure u know exactly what I am talking about.
M
(Hard work never killed anyone, buy hey why take a chance)
Thanks for your reply Marrisa. I am new to this. They expect The cheapest block to sell for around $750.thou. They are asking $2000. per sqr mtr. The house will be around $450.thou. I am hoping as they are in big demand and the people wanting them should have lots of money, that if we get one we can pretty much sell it straight away or a profit of around $100.thou. Or build the house on it if we can afford to. Live in it for 6mths to save on the tax and then sell it. A house across the road recently sold for 2.5 mill. But that was a large old house on a much bigger block. We will be closer to the park and river than them..
Hi TraceyL
Look at the numbers and the facts and what can realistically be achieved, ie – sales figures for the relevant pocket, how many houses on market, how is the upper end moving at present and talk to as many people who either sell or know this market. At least this way you can make an informed decision.
I had a quick look at homes selling in new Peninsula Estate on approx 400 sqmtre block with river views, seems around $1.1M-$1.3M. Building could be a little tight.
Property u mentioned that sold for $2M sounds unique I am guessing due to development potential, probably can not compare these figures to what u are looking at.
If you are planning to onsell the block, you would need to check the contract to make sure developers allow this.
Unfortunately GST is a killer selling prior to 12 months.Have u looked closely at figures if u hold the block for 12 months, I am not an expert as far as GST goes, but I believe there would be 50% reduction, though u will have holding costs, but u may actually be better off due to CG during this 12 month period, as river side blocks are rare and sought after.
If you were looking at building and holding for the long term I would say it would be an absolute winner, it just gets harder when you have a shorter timeframe.
(Hard work never killed anyone, buy hey why take a chance)
Thanks Marisa for your input, you have been very helpful.
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