Strata Titling Opportunity

Hi Richard,

The units are in reasonable condition.

If the Vendor accepts the cash offer $720,000 there is potential for $420,000-$600,000 minus the other costs if sold. If not, then you’d end up holding units yielding +10%.

If the Vendor accepts Options offer, then there is less deposit costs, less holding costs, and more time to onsell the units, possibly no acquisition costs if all units are presold before option expired.

The $95,000 is probably at fire sale price, and more likely achievable price being $110,000.

Can you provide me with more information about the blocks you have strata titled in Brisbane please?

I’m interested in finding out more about the numbers involved.

The surveyor has recently replied to my email:

“Apart from our fees of $3800 + gst there will be a Land Titles Office fee of around $1700 for lodgement. Council will also likely have a small sealing fee/application fee for the strata (maybe allow $1000). I’m not sure where the $20000 figure has come from? The strata titling process is reasonably straightforward. You might have other fees such as building surveyor fees, etc but they aren’t directly related to getting strata titles. Regardless of the condition of the buildings, as long as they comply with the permits at the time of construction then they can be strata titled.”

Does this sound right to you? Strata titling for only $5,500 or is there something missing here?

Kind Regards,

David

Hi Ethan,

Yes, I think $720k is an offer that the Vendor would take into consideration, as he would like to move on and focus on his hospitality business where his returns would be far greater.

The units are separated by brick veneer, and a local builder is confident that the floor is concrete – however the only way to be 100% is to pay the Surveyor to check out the property.

Anyways, its no big deal. I’ve moved onto a Duplex: Purchase price $255k. Estimated rent $200/week each side. Will live on one side while I renovate the other side, and could potentially add another $20-30/week.

So good cashflow now, and potential for further growth later down the track as the suburb is undergoing Gentrification and has been zoned Residential Regeneration Zone. Recently a Developer has been able to build 4 townhouses on a Duplex site similar to mine and sell each townhouse for about $300k.

I’m thinking maybe 3-5 years down the track I might consider doing the same thing or onselling the site to a Developer. Would you know roughly how much it would cost to build 4 townhouses on a 1200m2 block?

Cheers,

David

Hi Ethan,

That’s no problems at all.

The duplex was in Elizabeth South SA, and the area seemed pretty rough when I visited.

Rubbish and mattresses lying in the front yard of some houses, road signs being pulled from the ground, and the duplex had been broken into the week before with a squatter found inside.

Based on the photos posted online I thought a cosmetic renovation was all was to add a shower screen, bath vanity, and paint everything. It wasn’t until I inspected the property in person that I found that there were more serious issues with the property.

Click here to see Picture of Duplex

In terms of development potential, I visited the Elizabeth council with all the plans of the other development nearby and they said that was no problems at all, and similar dwelling could be placed on the site. Permission was needed to remove any trees with circumference of more than 2 metres though…

Click here to see nearby Development

P.S. Thanks for sharing the link on estimated construction costs

• This reply was modified 7 years, 1 month ago by  David Thiu.

Another interesting find in the area:

Click here to see

New property being sold for $300k (thats probably the fifth I’ve seen so far)

Maybe there is a market for new houses in this area (5th one I’ve seen sold for that price range so far)