Inspecting a Knock Down and Rebuild Opportunity in Brisbane

Today we are on the road in Brisbane look at a potential knock down and rebuild site.

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0:42 – The inspection process for a knock down rebuild
4:44 – Property walkthrough

Property with Granny Flat Potential

Transcription:

Ryan 0:00
today we’re on the road in brisbane i’m here with simon everingham buyer’s agent from pumped on property and we are looking at this little gem behind us which is actually a potential for a knockdown rebuild so we want to talk about some of the things to think about and look at if you’re looking to purchase a property that’s going to be for a knockdown and a rebuild for potentially single income or dual income property and it is pouring at the moment so we okay

Simon 0:25
i just say we’ve got a little jungle for us that we’re in here they’ve got a nice bamboo fence

Ryan 0:30
line so we’ll just come under cover here maybe we should just stand over here and perfect this spot here

Simon 0:38
yeah

Ryan 0:40
so i guess looking at potential for a knockdown rebuild the inspection process is a bit different because i guess we still look at the house and we still look at the features of the house and whether it can be rented but in the pre inspection i guess pre coming to the inspection we look at a few different things

Simon 0:58
yeah exactly so obviously the house doesn’t come into play as much as it would have if this was just your standard person investment home rented out you know we’re on a nice big piece of land here we’re on a corner block as well so makes it very easy to kind of control that dual income opportunity now before we get to the inspection here what we’re looking at is obviously suburb analysis is really important now we have a massive screening process to identify a high quality suburb right now we’re just walking distance to the beach really nice area here in brisbane about 25 k’s from the cbd and on a big 600 plus square meter piece of land here so what we’d like to focus on is identifying properties that are not on main roads so they’re in good areas of the suburb so here we’re kind of well in truly in the back streets is really nice quiet streets out the front heavy owner occupier percentages out here in the street out there like i’d love to show you guys but it’s just absolutely hammering down with the rain right now don’t want to get this hair wet but yeah i would say out there you’re looking at probably 80% owner occupiers out there which is huge so that’s going to draw in those emotional purchases in the future which hopefully can maybe pull up the value of the property but the awesome opportunity with this one right here is it’s a it’s the house is still well and truly here it is relatively low maintenance now it’s not the nicest house ever but you would easily be able to find some tenants in the short term so if you kind of wanted to land bank it for the future purchase a good piece of land with a decent house on it for now we could rent it out and still receive some rental income and then come back to it in the future knock it down and rebuild and if you want to have a look down here as well this one’s just on piers so it’s not actually slab on ground and that is an awesome opportunity because rather than it costing an absolute truckload to pull down yeah it’s only going to may only cost around $20,000 to get this house demolish and then build your new one on there so it becomes a bit more affordable

Ryan 3:19
yeah so you’ll see the property as we walk through it is in original condition but it’s not one of those properties that you know really bad unlivable condition yeah exactly yeah as simon said there is potential to rent in it so when looking at a knockdown rebuild you’re still inspecting the property and thinking about that but you also had to take demolition costs into account for a property like this so generally somewhere around a $20,000 mark or 10 to 20,000 depending on how much especially those is on the property as you said this one has he is which can be easier versus a slab so there’s a bunch of different factors that come into play with demolition but obviously you need to take that into account in your figures the purchase price of the property the demolition and then obviously the build cost on top of that as well there really exciting opportunity here being on the corner but also being on quite a quiet street so the property is being able to have jewel access from different streets yeah is really cool as well

Simon 4:17
yeah exactly and you know a couple of other things that you definitely want to check is flooding issues you know it’s been raining heavily for the last couple of days up on the sun or up in brisbane and you know zero issues here and you can do a little bit of a flood search there as well so all of those different factors are super important as opposed to the actual house now why don’t we check it out

Ryan 4:42
yeah let’s go ahead and have a walkthrough of the property and so as you can see you come in here good colts game so as we come through you can see that this property is completely rentable right now

Simon 5:00
Yeah, so you know, you’ve got all the everything that you essentially need to get a decent tenant. So you know, you may not be getting a bucket load of money. But if you’re kind of land banking for the future to then knock down and rebuild, it gives you a bit of room to breathe for a little while. So you’re not sitting on just a piece of land that’s not producing you with any income, you’ve actually got some sort of income coming through until you are ready. But you know, it allows you to go through the design

Ryan 5:27
process of work out what kind of build Are you going to work with, and all that sort of stuff. Yeah, we’re still getting some rental income coming in to pay for the mortgage.

Simon 5:35
Exactly. But you know, on the other hand, somebody may want to come in and just demolish this thing straight away, and get that new build process happening, ASAP, so that they, you know, bring things forward a little bit faster. And, you know, you’re going to be receiving much more rental income. Once you rebuild a brand new Julie income home here, you’re also going to have the depreciation benefits and everything else associated with building a brand new home.

Ryan 6:00
Okay, so give you guys a little bit of a walkthrough through the bedrooms over here. So this is a three bedroom property. So we can say. So you can see the first bedroom there, come through the bathroom. Unfortunately, it’s really dark in here. And there’s no electricity on this property at the moment. But bathroom is in very original condition. And then the bedrooms in here again, it’s fine. Everything’s fine. The floorboards are actually the floor was actually surprisingly Nice.

Simon 6:33
Yeah, the actual house is is relatively nice. Like there’s no, you know, you’ve got that beautiful orange wall as you’re walking in. But everything else is just you know why with wood finishes, which makes it pretty, pretty good.

Ryan 6:46
I guess one thing with this property is that there’s not given the layout of the house and how the house sits on the block, there’s not really the opportunity here to build a granny flat, just because there’s not enough room in the backyard to be able to do that. If the house was situated to one side of the block. The house is kind of on an angle on Yeah.

Simon 7:06
So so we’re on like a corner block here. And then the house kind of faces the corner, which is a little bit odd, you know, diagonal across the block. Yeah, so that’s kind of ruined any development opportunity there unless you do knock down the house. Now, you know, this is a great opportunity for the knockdown rebuild. But, you know, price obviously always comes into it as well. You know, if you’re purchasing something like this with the intention to knock it down in the future, you know, you don’t want to be overpaying. Essentially, you almost want to be purchasing the land and having the house thrown in for a very small price. So if you look at comparable land sales in the area for baking blocks of land, and then you’re purchasing something with a house on top of it that you considering knocking down you really want to make sure that that has been while you’re pretty much getting the house for free, or you’re not overpaying for it because he don’t want to over capitalize.

Ryan 8:02
Yeah, so really interesting property that we wanted to show you through. I hope that you’ve enjoyed this one. What I will link up to down below is an inspection that I did with crystal on a property that actually had granny flat potential so you can see the difference between this one and that one there. But yeah, really interesting. It’ll be interesting to see if the client picks this up. Yeah. And goes ahead and does the knockdown rebuild for sure. Sweet

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