, , ,

Are you sitting on a Splitter Gold Mine?

Splitter blocks brisbane

Splitter blocks are once again becoming popular as investors try to get the most bang out of their buck or you may be already sitting on a goldmine if your existing property can be split.

 

The term splitter block applies to properties where: there are two or more lots on one title.

A recent example was a Fallon Street, property at Everton Park.  It was a 1225 square-metre block, already on two titles but with the option to reconfigure to three titles, it created a frenzy when it was listed.

The listing agent said, "It went nuts. I can’t give you an exact sale price as it’s not unconditional yet, but I can tell you it went for over $1 million,” he says.

The inner city Brisbane suburbs such as Newmarket, Wavell Heights, Nundah, Virginia, Bald Hills, Deagon, Sandgate, Banyo, Boondall, Northgate, Mitchelton, Enoggera have been popular spitter block locations over the last decade.

These inner city suburbs in Brisbane typically are lots of 10m by 40m or 405sqm so if your property is 809 or higher you may find it is already split into two lots and you don’t have to worry about spending money on subdivision approvals or waiting for the approvals to be processed.

There is a downside like the need to demolish or move an existing house and in some cases the house may be heritage listed or in a demolition controlled zone.

As soon the lot has been split into the two titles the site is cleared and two new houses can start construction.

Splitters are where investors take advantage of old town planning methods. In the 60?s and 70?s around Australia, most residential blocks were subdivided at a ¼ acre or 1000m2. Today Local, State and Federal  Governments all know the value of a more dense population. Governments save billions of dollars in infrastructure by encouraging the community to live closer together. They even encourage the development of smaller blocks of land today that are in some cases less than 250m2.

When developing splitter blocks in Brisbane there is a lot of things you need to consider:

Below is the process we go through to determine if the project is viable when splitting a block for development.

To determine the costings of a splitter block you need to look at:

  • Cost of the site
  • Demolition approval
  • Demolition costs
  • Services (Server and water)
  • Location of services on the block
  • Other associated development costs
  • Transfer and legal costs
  • Subdivision costs (e.g. civil design, town planning, public notices, council fees and any council contributions).
  • Building construction costs
  • Associated site costs (Leveling and retaining)
  • Marketing on finished products

If all the figures add up to a profitable project….an educated decision can be made.

After identifying the block could be suitable as a splitter block, we check:

  • The demolition control Precinct (DCP) if the house is built pre 1946
  • if the block is on the flood map or any overland flow issues.
  • Dimensions of the block and if it is suitable for sub division into a splitter block

and then run through the costing of the project.

Do you have any questions about splitter blocks and or sub division in Brisbane or surrounding areas? Don't hesitate to call our the team at Madeleine Hicks Real Estate who know all about the best areas to acquire splitter blocks in our area.

, , , , , , , , , , , , ,

Suncorp blacklists your suburb!

blacklisted

Big banks are set to announce tougher measures to crack down on high rise apartment purchases including blacklisting more than 100 Brisbane suburbs, doubling the minimum apartment size to qualify for funding, evidence of rental cash flows and tough new valuation criteria.

Lenders such as Adelaide Bank are introducing "minimum funding requirements" requiring apartments to have their own bathrooms, kitchens, laundries, and windows in key rooms, such as bedrooms and lounge rooms.

Others, such as Suncorp Bank, the nation's fifth largest mortgage lender, are circulating a list of 39 Brisbane postcodes covering more than 100 city and metropolitan suburbs where the new lending restrictions will apply from next Monday.

"Our settings have been adjusted for postcodes based on recent weakness in the investment unit market in Brisbane, with evidence of a reduction in prices," a Suncorp Bank spokesman said.

suncorp restricts lending to local suburbs

McDowall and Everton Parks No 1 rated real estate agent Madeleine Hicks said "suburbs like McDowall, Stafford, and Everton Park, are really a victim of what has been happening in neighboring suburbs Chermside and Nundah.  A lot of units have been built in those suburbs and we are paying the price"

 

"Whilst there has been some unit development in our main suburbs it has been nothing compared to our neighbors," said Hicks.

Nervous lenders are turning the screws on apartment buyers amid growing concerns about over-supply, falling prices, restrictions on foreign buyers and potential risk from combustible cladding widely used on high rise apartment exteriors.

For example, new apartment sales in the Queensland capital have reportedly collapsed by more than 70 percent in a year, prompting desperate developers to offer lucrative incentives to attract buyers.

Developers, such as Consolidated Properties, claim Brisbane has been cruelled by restrictions on financing set up to ease speculative buying in Melbourne and Sydney.

Other developers, such as ForceOne Development, have been using incentives like a free Toyota Yaris to encourage apartment sales.

AdelaideBank, a division of Bendigo and Adelaide Bank, will today (Wed) announce stricter controls on apartment lending that include bigger sizes, better design, identifiable cash flows for investor/lands and more stringent calculations of a borrowers' capacity to repay.

 On the Plus side

"Now presents a great opportunity for cashed-up investors to get into the growing Brisbane market and take advantage of bargains that exist.  We know that the population in Brisbane will continue to increase and that will mean there will always be strong demand for homes in the inner suburbs," said Madeleine Hicks

In fact, Ms. Hicks called for "greater investment in infrastructure in the Stafford, McDowall and Everton Park suburbs to better reflect the increase in population that is moving into these suburbs.  This only seems fair as the Council is collecting greater revenues but not spending the money here."

The Minimum requirements for high-density apartments to obtain funding include windows in bedrooms and living rooms, separate bathrooms, and their own laundries and kitchens. High-density apartments are complexes of more than 50 units or five stories.

Minimum sizes for two bedroom apartments have been doubled to 60 square meters and timeframes for off-the-plan valuations have been reduced from six to three months to "better the risk" and "align acceptance of applications and valuers' professional indemnity cover".

Last month Australia and New Zealand Bank also issued a blacklist imposing tougher terms requiring borrowers to have a 20 percent deposit.

The value of apartments has fallen by about 1 percent in Brisbane during the past 12 months, according to SQM Research, which monitors property prices.

Several recent reports by independent consultants have warned demand will be exceeded by the estimated supply of new apartments in Brisbane, which will add to downward pressure on prices.

There is also growing investor concern about the outcome of current investigations into the widespread use of inflammable cladding on apartments, particularly who will be liable for its replacement.

 Under Suncorp's new rules, it will no longer accept investment loan applications for apartments that do not have a minimum deposit of at least 20 percent.

What do you think are the banks right to restrict lending in certain suburbs only?

Source Brisbane Investor

, , , ,

$50 Million Makeover Planned for Brookside Shopping Centre

Brookside Shopping Centre has announced that further works are set to begin as part of a $50 million makeover, with the central cross road of the shopping centre poised to become a revitalised hub and food precinct for shoppers.

These works are in conjunction with the opening of Target, Cotton On Mega and Sportsgirl, prior to Christmas this year.

Brookside has commenced construction work, to give the 46-year-old shopping centre a modern makeover including façade upgrades, contemporary interiors and tenancy remixing, in line with existing and emerging customer needs and expectations.

The centre court area will be transformed into a food and meeting hub with casual dining and communal spaces. The look and feel of the interiors will be warm and inviting, emulating the Queenslander style that is so prominent within homes in the Mitchelton / Brookside trade area.

These works also involve building in the large void currently in centre court, to create more floor space to increase the food offer available.

Centre Manager, Mr Russell Shaw said that “The planning for this $50 million makeover was inspired by the aspirations of our customers whilst still maintaining the convenience and intimacy that Brookside has long established.”

“As well as the families in the trade area, the customer base also includes a very loyal older demographic and young, vibrant singles and couples moving into the area. Creating a retail offer and community space that connects and resonates with our customers’ needs and wants will be key in making this a project a success.”

Mr Shaw said that with the introduction of Cotton On Mega, together with Sportsgirl, Target, and the new centre court food hub, that Brookside Shopping Centre was well positioned to attract additional key retail offers, incremental customer patronage and future growth.

The Buchan Group were appointed to design the shopping centre makeover – the same architects who designed the newly refurbished Toowong Village, Wintergarden and Robina Town Centre. Building companies Broad and Mettle are jointly undertaking the construction project.

The Shopping Centre will remain open during the construction and refurbishments, reassuring disruption to shoppers and retailers will be minimised.

For updates visit their Facebook page or visit the centre.

Source: Brookside Shopping Centre Press Release.

Brookside plans for new shops and food court

Brookside lodges plans for new food court and shops

Brookside plans for new shops and food court

It is safe to say that since Myers moved out of Brookside the centre has been feeling a little empty.

No plans have been lodged to revitalise Brookside with a new food court and a mini-major retailer (can you guess who?).

Retailer First the shopping centre's manager is seeking approval to make the current food court and adjacent mall into shops.  Whilst at the same time converting the void surrounding the travelator in the centre court into a mall and installing a new kiosk.

It is expected that a new food court would lead to an increase in floor space and  would be created by placing food outlets around the outside of the existing centre court.

At this stage there are no details about the timing for these changes it is expected that Target will be moving in before the end of the year, hopefully before the Christmas period.

What would you like to see at a revitalised new Brookside?

 

Source: Quest Newspapers