All Topics / Help Needed! / How to redevelop small block of units?

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of homersydhomersyd
    Participant
    @homersyd
    Join Date: 2010
    Post Count: 31

    Hi all,

    Currently looking at an old unit in a small block of 4 (so the land value is probably greater than say a high rise apartment block), I think it’s in a good location (close to transport) so it should have plenty of potential. There are a couple of potential options I’m thinking of if I buy it:

    1. Wait for developer to buy it and redevelop it – would they just pay me market value of the portion of the land that I own (in that lot)? Or would they simply buy the unit off me with the market price?

    2. Buy it and talk to the other owners and try to redevelop the entire block – but where should I start looking in terms of council planning etc? I have no idea how to find out if the area can be redeveloped into apartments?

    Is there some step by step guide re. redeveloping block of units? (especially for a noob like me with no idea what the council even do…)

    Thanks

    Profile photo of christianbchristianb
    Participant
    @christianb
    Join Date: 2009
    Post Count: 386

    The only sure way is to buy all four. Any other plan is a little "hit and hope".

    You can approach the local council about any notion you may have of redeveloping the block and they will be able to give you some zoning advice and maybe some advice around council's strategic objectives.

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    It really depends on the area, zoning, etc. A lot of developers in certain pockets of Sydney are purchasing older boutique apartment blocks, renovating all of them and then marketing them the same way as a new units. It is quite attractive for investors particularly those interested in OTP purchases. Higher risk but if done well there is good potential for higher return.

    Shahin Afarin – Property Finance Consultant
    http://elitepropertyfinance.wordpress.com

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
    Email Me | Phone Me

    Residential and Commercial Brokerage

    Profile photo of homersydhomersyd
    Participant
    @homersyd
    Join Date: 2010
    Post Count: 31
    christianb wrote:
    The only sure way is to buy all four. Any other plan is a little "hit and hope".

    You can approach the local council about any notion you may have of redeveloping the block and they will be able to give you some zoning advice and maybe some advice around council's strategic objectives.

    Thanks christianb, but unfortunately I can only afford 1, so guess that’s out… :(
    yea may approach the council to find out bit more info…

    Profile photo of homersydhomersyd
    Participant
    @homersyd
    Join Date: 2010
    Post Count: 31
    TheFinanceShop wrote:
    It really depends on the area, zoning, etc. A lot of developers in certain pockets of Sydney are purchasing older boutique apartment blocks, renovating all of them and then marketing them the same way as a new units. It is quite attractive for investors particularly those interested in OTP purchases. Higher risk but if done well there is good potential for higher return.

    Shahin Afarin – Property Finance Consultant
    http://elitepropertyfinance.wordpress.com

    Thanks Shahin, but since the area is already above average in pricing, I dont think there is much room for profit once I factor in the potential cost to renovate all 4. It’s actually an art deco unit block so i dont know if much can be done to renovate the external appearance of the building….

    Profile photo of Shilo1948Shilo1948
    Member
    @shilo1948
    Join Date: 2012
    Post Count: 3

    First go to local council  re zoning, permits, etc… also to  find out easements, water,electricity,gas, authorities,  Vic roads, each state differ.

    I use http://services.land.vic.gov.au/landchannel/content/addressSearch for Victoria  it helps me with zoning  and other unseen restrictions placed upon site/land. And it's Free or small cost for full reports.
    Not sure of NSW,QLD  can anyone help me with 
    Interstate zoning similiar to the  government web link to above please .

Viewing 6 posts - 1 through 6 (of 6 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.