How to sell a unique 4,300mtr house/land in Liverpool/Moorebank

Hi Gateway,

I have a 4,300mtr property in the Liverpool/Moorebank area. It is the last of the original subdivided blocks from the 1920′s so the valuer is not able to take more than an “educated guess” with the caveat that even that could be wrong as the place is the last uncut block, has 2 street fronts, zoned med density, not bad house etc etc etc. Basically no one has any real close estimate of the place’s worth.

I don’t know the area (I’m in Brisbane) but I would have to think you are sitting on a small goldmine. Just a quick “back of the envelope” calc should get you close. Again, since I don’t know your area (Council bylaws, zoning meanings, etc) I will just do a quick example that can point you in the right direction (perhaps).

For my example, and to make calcs easy, let’s say this can be subdivided to form 10 blocks for building – a size of 430m2 is pretty common today, and could even be less size with many Councils, perhaps allowing you to form 15 blocks. But stick with 10 x 430m2 blocks. And, let’s say a 400m2 block in that area fetches $200k. That means you would have the possibility of $2m or thereabouts.

Now set your own figures to that. Then you need to allow for subdivision costs, so the price would drop to allow for those. Maybe you can look at subdividing “a small part every two years”. Like, subdivide 4 blocks off one end and arrange to build 4 homes on them over a 2 – 3 year timeframe. Keep in mind access for those in the middle. Maybe you need to “give up” one or two blocks to satisfy the access problem.

By developing them yourself, you save around 20% of the cost, AND you already own the land (less the cost of subdivision). It strikes me that you could set yourself up pretty nicely over the next decade. Sell off a few to pay off the rest (maybe sell 3 or 4 to keep 5 or 6 without mortgage) and go play golf !!! With the land costing you little, and the wholesale building costs if you develop, these should be hugely cashflow positive.

I’d be interested to hear what others think too – especially those who might have done similar things. And I’d like to hear what you think. Can the above idea be massaged to “fit” your situation?

Benny

• This reply was modified 10 years, 8 months ago by  Benny.