We have a 450msq block 6min drive from Cessnock CBD(40 min to Newcastle),Walk to primary school,parks, clubs/pub & convenience shops
The area is old with good reputation, some new houses in & around it
Looking for ideas on the type of development
Council will allow house or duplex
Thanks for any help or comments
Regards Iron LadyMortgage HunterParticipant@mortgage-hunterJoin Date: 2003Post Count: 3,781
Are you planning on building to sell or to rent out?
Speaking to agents about the end value of units vs houses and also the expected rental should help you decide. You also need some idea of costs.
Valley Homes has some terrific duplex designs and they are in our area.
Cheers,Scott No MatesParticipant@scott-no-matesJoin Date: 2005Post Count: 3,856
A couple of options present themselves – a dual rental (retain existing PPOR), live in one/rent the other + rent (or sell) existing PPOR.
You will need to check how large a duplex you can build on the site considering that the block is only 450 m2 – there probably won't be much site left over once you take into account setbacks and private open space requirements. It will most likely need a site based solution rather than a project style building so the usual $200-250k may not be enough (although they may be quite small).
Thanks for the comments
The original plan was to build duplex, sell one and rent out the other
We could squeeze a Jones on there for an estimated total cost in the 340'sK
Agent said we should get 200K each, but with intrest rates on the rise and the sale takes longer with not much growth, profit will shrink
One agent said duplexes dont sell fast
Getting some prices on smaller units and houses
Will keep you posted on our developments even if we just sell the land, but dont want to just hold the land
Regarrds Iron LadyJONCHUMember@jonchuJoin Date: 2004Post Count: 112
Hi Iron Lady, I actively invest in the area. Units and duplexes rent very quickly however they are harder to sell. In my opinion the profile of the Cessnock buyer is still, families looking for the land component (room for toys and for the kids to play, etc). I have done both, units and houses in the area. Heaps of bargains there at the moment…
If you go for the duplex make sure you can “hold it” for a while. This is just my experience. If you can hold them and get a decent rent and depreciation, etc…work out the numbers.
It will also depend on how much you paid for the land (is it a sub division or you bought the land? )
Feel free to give me a call if you want to have a chat about the area, happy to share info on some of the things I have done there, etc.