26 Seddon St, Ivanhoe VIC 307926 Seddon St, Ivanhoe VIC 3079Price: $1.225m
Linda wanted to build a new family home that could accommodate her elderly parents and teenage children. But, she didn’t want to overcapitalise. In fact, she wanted to engineer some profits.
The ideal location was reasonably broad, based on a triangulation between schools, work and transport. We quickly zeroed in on 4-5 suitable suburbs that suited her budget and objectives.
A preliminary analysis of this site suggested it was suitable: in a quiet but accessible neighbourhood location, with a wide street frontage, on the high side of the road, and surrounded by new modern homes. Linda like it – please progress with a full feasibility.
Some reasonable profits were possible but we’d need to negotiate a second cross-over with council around an electric pole and street tree while retaining on-street parking spaces. We attained advice from our Architect and a Council Planning Officer, and determined we had multiple viable options.
A final piece of advice the day before auction had Linda say “no thanks, we won’t bid”. The nearest Legal Point of Discharge for drainage was 40m away along the street. Council Engineering advised that we would need to install underground PVC drainage pipe from the front of our site to this point. Wow, that equates to about $40k and a giant pain in the butt.
I respected Linda’s decision, particularly given we had another off-market property to pursue. But, sometimes life is about just showing up, so I attended auction the next day.
The agent greeted me right away, 2 mins before kicking things off. “Hi Andrew, are you here to bid today”. “No mate, sorry but we got some bad advice from Council yesterday that rules it out for us”. “Oh no, really? I probably won’t even conduct the auction then given I just have the one other buyer”. “Well, what’s the Reserve Price? If we could secure it at the right price, I can give my client a call and see if she’d reconsider”. “The vendor told me just now that she needs to sell today 100%. She’s interstate and doesn’t want to continue a campaign. I reckon she’d sell right at the bottom of the $ range, around $1.200m”.
Well, this was very interesting news. I had valued the property at about $1.370m based on recent nearby sales and local agent advice. If we could pick it up at that price then the drainage costs weren’t an issue at all!
“Mate, let me give my client a call and I’ll talk her through while you conduct the auction”. As expected and hoped for, there was no bidding from anyone and it Passed In. A bit of mucking around afterwards where I pointedly didn’t put in an offer until the other buyer confirmed her best an final, we ultimately secured the property for $1.225m – almost $150,000 under market value!
Linda was on the phone to me the entire time. She quickly drove to the property and signed. We’re now progressing full steam ahead with Plans and Permits for 2 large side-by-side semi-detached houses. With a 150 day settlement period, we’re aiming to have everything build-ready by the time Linda takes possession.
Quiet, family friendly neighbourhood close to key amenities
616m2 rectangular, high side of road
Very tired, land value
$0.475m
up to $1.400m
Auction - negotiation after passed in
5 months
House $1.400m | Unit $0.679m
4.9% p.a. over last 10 years
Family suburban in prime location
Below market value, gentrifying
Two semi-detached 4bed dwellings on own titles
18 months to secure permits
$3.100m Turnkey
$3.580m once completed
$0.450m once completed
38% once completed
15% once completed
$1.635m
$0.820m
$2.000m
$1.100m
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