…a fantastic Off-Market Potential Development Option

We recently bid on a cute three bedroom house in Watsonia and walked away without the sold sticker. The property sold for $600,000, but because of a large tree in the backyard and a Department of Housing tenant on a further eighteen month lease, our cap of $590,000 stood firm and that property just wasn’t meant to be.

Our wonderful repeat clients had researched areas and budgets. They were keen to find a home which could double as a rear development site.

Developments are difficult for many reasons. Often, buyers have little idea of the magnitude of difficulty. From holding costs to subdivision challenges; services connections to builder quotes; planning approvals to arborist reports… there is nothing simple or predictable about development. And that’s not counting for building overruns, construction finance, or unreliable tradies. Naturally, I’m careful about taking on ‘development site’ projects.

But this time round, my clients knew what they were doing.

Our disappointment after the Watsonia auction was mild. They were pragmatic and accepted that another buyer saw more value than they did.

But what shortly-after presented itself by surprise got them thinking….

An agent we knew in the Preston/Reservoir area alerted us to an off-market property of a landlord of theirs who didn’t want to disrupt the tenant with a campaign entailing open-for-inspections. This cute 1927 gem sat on a whopping 620sqm and offered a generous width driveway down the western side of the block.Unlike the Watsonia property, the yard was not overly encumbered by any large trees and the street and surrounds presented plenty of precedent cases of subdivided units; including two rear units behind the older house next door.

Our clients conducted their due diligence and decided that this house was a winner.

Our offer of $630,000 was accepted subject to building inspection and finance, and our clients can look forward to a very exciting project in an area which is rapidly gentrifying. With public transport (train and bus) amenity nearby, CBD only 12 km away and Preston market a short driving distance, Reservoir offers an exciting opportunity for developers and builders who are looking to break into the Preston/Coburg North market with difficulty.

Wishing our clients a successful project and a happy home in the interim.