Thanks everyone for the comments,
I think I will probably follow Mattnz advice,
I will build a second dwelling on the 1000sqm block.
Renovate the original dwelling.
Spoke to the agent, re – value of new dwelling and reno'd old dwelling.
New dwelling on approx 500sqm low 300's
Original dwelling on approx 500sqm high 200's
Purchase price around 220k
new dwelling? will speak to a few builders. But there are house and land packages on the outskirts of town for 220k 2/1
Reno costs? around 50k, waiting on building and pest to confirm.
Development costs, additional fencing, landscaping? Requires further investigation, once town planner for local council gets back from holidays on monday will have a clearer picture. around 30k?
80-100k gross profit, less holding and purchase costs.
I plan to keep both properties at completion as rentals.
Should I purchase through my DT?
Thanks again for the info.
Very helpful.
Only concern was that the agent said he was involved in a 1500 lot subdivision that is going ahead this year.
Will this flood the market and kill any capital growth for the area.
Cheers
Thanks Kevin,
I had already looked over the development plan after Mattnz original comments.
The property I am looking at is zoned residential.
But I actually picked up a few things I missed on the first read through.
So thanks for the post.Ross
After re reading the Whyalla town plan, I think it will be easiest to build a single level 3/2/2 house and renovate the original property.
Always good to get advice from people that are experienced in the field.
Thanks all
No worries. I often refer back to the Development Plans for the various councils when looking at properties.
Just for future reference, all SA ones can be found at http://www.sa.gov.au/developmentplans
Kevin.
Hi Ross,
How long will this all take, as you need to factor that in. If it takes 18 mths or longer from go to whoa, then will that profit work for you? essentially 40k per year?
50k for the reno costs sounds high considering the low resale price I may have read it wrong, should be aiming more around the 10% for reno, 15% worst case. If you need to spend more like 50k is it worth renoing?
The other thing is – it may be easier to do a certain build, but is that the most profitable? Have you spoken to a architect/town planner yet?
Ensure you put in a due diligence clause on your contract too, meaning that if you can't do what you want with the block you can get out of it.
Cheers
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeHi D,
the property was built in the 1940's.
Had a bathroom upgrade in the 1970's and the stone cottage was rendered around the same time.
The external laundry and toilet were built into the back of the house.
Needs a full reno and possibly a rewire as well.
Needs new fences and a good garden clean out as well. Although most of this could be done for little extra during construction of the new dwelling.
The real estate agent thinks that the sheeting used to enclose the laundry and toilet to the house could be made of asbestos.
Waiting to get the building and pest done to confirm.
Should I stay away from the property if it has asbestos, or factor it into the offer price, as the vendor doesn't believe that it is asbestos?
Would rather over budget and come in under price, than under budget, have a blow out and end up with nothing in the deal.
Can't do a lot till next week, as everyone still seems to be on holidays till then.
Will be able to get proper quotes and a more accurate understanding of its viability.
Thanks,
Ross
In relation to zoning and what can be built or subdivided, Seek advice from a experience town planner.
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