A humble property in Clayton has made its owner very happy indeed, by making a $640,000 windfall in just 15 months. The home on Kimbarra St had no changes to appearance whatsoever, but sold with the addition of planning permits.
The property was purchased in May 2016 for $800,000, and then sold with the planning permits in August 2017 for $1,4400,000.
Senior Buyers Advocate Mark Ribarsky says that selling a property with planning permits can increase the property value greatly. “There were some zoning changes in Clayton with regards to restricting development, and this vendor very cleverly purchased this property with specific intentions of getting permits before selling it on for a profit”. Mr. Ribarsky says “The property sits on a 671sq m block, and with the permits, the new owner can build four townhouses on this property, rather than two”.
This tactic increased the properties value by 80 percent, which is far higher than the 11 per cent growth the rest of the suburb had.
Mark says, “Property prices in Clayton, and Clayton South are going to sky rocket because of developers are paying more attention to these areas. If that property was subject to two townhouses built, it might have fetched $1,100,000. The additional two houses on the permits gained this vendor an additional $340,000”