Reno Kings - Take a look from all angles
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Take a look from all angles

This $600k site was zoned for units and townhouses with the ability to
demolish the existing house, and was correctly marketed as such, however, it is always important to look at potential sites from all angles.

The agent couldn't tell us much about the house, other than the fact it was in average condition - why would one need to know about the house, if it was to be demolished anyway?

In this instance, we needed to know more for two reasons.

The first was to rent the house out whilst waiting for development approval, the second reason being that there was a development option worthwhile exploring, where the house was retained.

After exploring all options, the buyer didn't run with the most profitable scenario, which was to demolish and build townhouses, rather, they went with the most straightforward option, which was to retain the house and create a new 300m2 lot beside it.

Our numbers indicated about $80k equity gain, which is nothing to sneeze at when you consider there is no demolition involved, no house shifting, no new construction, the seller would rent back in the meantime and we can be in and out in about 4 months!

So why didn't the agent promote the subdivision option? Probably for a number of reasons.

The house was in average condition, but it is all cosmetic, so it wasn't the 'terrible knock down job' he possibly perceived it to be.

Another reason might be because the land size of around 300m2 is not a standard size, but possible under the most recent development rules.

A third reason is because the newly created lot is a triangle shape, which is unusual and as a rule not always desirable to build on, but we have confidence in our numbers, as there is something to be said for being the cheapest block of land on the market (by a considerable margin) in a quality suburb.

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