Hi,
I have a mortgage on a house in the Lower Templestowe/Bulleen area of Melbourne (on around 750sqm) which is around 14km from the CBD. The next door neighbour is considering selling what looks like a larger house on a slightly larger block. I was considering getting my brother to buy it for devolopment of some townhouses or units.But due to not having any experience in this, I’m against committing to a project like that. I’ve done some rough math and there is money to made (even in the current climate) with such a project but I think there is still too far risk involved.
As a result of that risk, my question is, would there be builders/developers prepared to buy *both* blocks for a tidy profit for us if my brother went through with a purchase like that?
I’d imagine that around 1500sqm in this area would be hard to come by in one block. I know getting the permits and plans for them would save them a lot in interest too but I was wondering what the chances of a builder coming in for big bucks in the such an area would be like. Any ideas/feedback would be greatly appreciated.1500sqm of land in that area should be able to accommodate 5-7 townhouses depending on what is proposed (singles,doubles). So, the value of the two blocks with permits (varies greatly depending on the permit you get) would be over $1m. Depends though if you are selling with or without the permits and the size of the townhouses that are approved.
remember though for you to sell your PPOR and buy elsewhere in the area will probably cost you $40-50k+ in after tax selling and buying costs so that’s something to consider if you weren’t planning on selling before.
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