$20 million property trend creating sea of overnight multi-millionaires: 'Can be very lucrative'
Australian homeowners are becoming far richer thanks to a wild new property trend. Instead of selling just your humble abode, neighbours are banding together to sell their block to developers for much more money.
That's what six houses on Mena Street in Sydney's North Strathfield are doing, and they could sell for a collective $20 million. Michael Murphy from McGrath Strathfield organised the deal and told Yahoo Finance home owners may not realise that recent rezoning had created new opportunities for residents to cash in on the trend.
Murphy said the North Strathfield group was "quite opened-minded" when approached.
Controversial mortgage practice costs homebuyer $30,000 after tiny pay increase: 'Unfair'
Coles shopper 'stunned' after getting $50 item free due to little-known rule: 'Insane'
Dad with no savings reveals surprising money message for struggling Aussies: 'Living pay to pay'
He revealed that a home in the area, which the agent admitted wasn't as nice as the houses in this sextet, recently sold for just under $2.2 million.
If they tried to go it alone, they could get a touch more than that, depending on buyer appetite.
However, selling as a group means each household stands to earn $3.3 million.The area where these six homes are in has recently been rezoned as part of the NSW government's Transport Oriented Development (TOD) Program.
There are several regions across the city caught up in the program, which is designed to increase housing supply near new transport hubs.
A new metro station is set to be created in North Strathfield and rezoning the area allows for more high-density living projects to be created.
This isn't the only sale of its kind in the suburb at the moment, with another nearby lot encompassing 16 houses on three different streets.
Similar state government programs in the past have spurred this type of property trend.
NSW's Urban Activation Precinct Plan saw a group consisting of 25 homes in Sydney's Castle Hill try to sell their lot to a developer for an eye-watering $100 million in 2016.
There was another group in the same suburb in the same year that had 90 homes in the collective, in a deal worth $360 million.
Each individual homeowner for both deals were set to earn around $4 million each, which was nearly four times what the average house price of the suburb was nine years ago.
John McGrath, from McGrath Real Estate, said at the time that this "megalot" trend is a win-win for everyone.
"The great news is that separate to the actual need for more medium-to-high density living to simply fit everyone in; a lot of people actually want to live in apartments over houses these days anyway," he wrote.
"So it's a great marriage between the practical needs of growing cities and the lifestyle preferences of their residents."
Murphy told Yahoo Finance that these deals are all unique in how they're created.
Sometimes the neighbours will do the hard work themselves by convincing each other to sell as a group.
Other times, it's up to the real estate agents to see if they can get a group going, while developers have also been known to door-knock homes in an area to see if there's any appetite.
"For some homes in the area that have been newly built and may be on smaller blocks, it's not as lucrative," he said.
"But if they're on a decent land parcel with more of an original style home, then there's definitely a major uplift."
He added that 171 areas have been rezoned recently across Sydney to allow for these megalot deals to happen within 800 metres of a town centre or train station.
Murphy said if you live in one of those rezoned areas, it's worth speaking to a town planner, real estate agent, solicitor or council representative to understand how their land value might have changed as a result.
"Every owner's circumstances is different, and they obviously need to weigh up what's best for their scenario," he told Yahoo Finance.
But the agent revealed there is one small downside to selling as a group to a developer rather than just by yourself.
"Selling to a developer is generally a longer settlement period. A normal settlement periods is around that 42 day or six week mark.
"However, for an amalgamation, generally, it could be anywhere ranging from six months up to 24 months.
"Most developers will will want a longer settlement period so that they can organise funding and start to prepare their development application with a local council."
He said some deals have been done faster than that time frame, but usually it takes a lot of moving parts to align for the deal to be fully approved.Sign in to access your portfolio
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
14 minutes ago
- Yahoo
US appeals court temporarily blocks pause on Trump tariffs
After a US trade court had deemed several of President Trump's wide-sweeping tariff policies illegal and paused them, a US appeals court quickly stepped in on Thursday and is now granting the import taxes to temporarily stay in effect. Yahoo Finance legal correspondent Alexis Keenan explains the order of events, court hierarchies, and the timeline for the Trump administration's legal filings after being issued an administrative stay until June 9. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. We've got breaking news now. A federal appeals court is pausing a US trade court ruling that blocked President Trump's global tariffs. Basically, tariffs are still in place for now is the bottom line. Senior legal reporter Alexis Keenan is here with more. So, all of the back and forth. Lot of back and forth back on. And and this is, is this a sooner finding than had been expected that the tariffs are going to be still in place for now? So, the federal circuit, it's an appellate court over the top of the International Trade Court. It can decide if it gets an application from the Trump administration, which it did, to put a temporary pause on what that lower court decided. So, this is the court stepping in here. This is a pelle court and reinstating these tariffs and saying it needs some time to look at the motions, look at briefings, look at the issues. Uh I don't know exactly where it's going to go from here, whether this is going to be an issue that will be decided at this stage at the appellate court level or whether the trial court, the the International Trade Court will be handling some of this. What the court said, this federal circuit court is that the request for an immediate administrative stay, they granted it to the extent they say that the judgments and the permanent injunctions entered by the court of International Trade are temporarily stayed until further notice. So the appeals court seeming here to put this pause into effect and they're asking the administration to give briefings to the court no later than June 9th. So that's the timeline that we have to work with right now. So you're kind of find a bouncing ball in the courts, Alexis, but correct me if I'm wrong. Doesn't Trump beyond that have plenty of tariff tools at his disposal? I mean, it's, you know, it's section 232, 122, 301. I mean, he has what sounds like just tremendous tariff authority and power here. Well, certainly the administration thinks so, but they chose to go with the act that they did, the emergency Act where Trump had said the administration had said that these national emergencies, immigration, drug trafficking, flows of illegal drugs into the United States, and so forth was a national emergency. And that didn't work at least at this lower court level. Now the legal experts I've been talking to in this area, they say it's anybody's guess what this appeals court might decide when the administration and the challengers come up before them. You know, maybe it'll go the other way. Maybe this International Emergency Act will be enough authority for a different court. Alexis, we will keep following it. Thank you so much. Yeah, bouncing around. Thanks.
Yahoo
23 minutes ago
- Yahoo
SpaceX Starship breaks up over Indian Ocean in latest bumpy test
Another SpaceX Starship prototype broke up over the Indian Ocean on Tuesday, capping the latest bumpy test flight for the rocket central to billionaire Elon Musk's dream of colonising Mars. The biggest and most powerful launch vehicle ever built lifted off at 6.36pm local time from the company's facility near a southern Texas village that earlier this month voted to become a city also named Starbase. The first signs of trouble emerged when the first-stage Super Heavy booster blew up instead of executing its planned splashdown in the Gulf of Mexico. A live feed then showed the upper-stage spaceship failing to open its doors to deploy a payload of Starlink satellite 'simulators'. Though the ship flew farther than on its two previous attempts, it sprang leaks and began spinning out of control as it coasted through space on a suborbital path before re-entering the atmosphere out of control and eventually breaking apart. Related: Fear, hope and loathing in Elon Musk's new city: 'It's the wild, wild west and the future' 'Starship experienced a rapid unscheduled disassembly,' SpaceX posted on X, using a familiar euphemism for failure, adding it would learn from the setback. Musk, meanwhile, vowed to pick up the pace: 'Launch cadence for the next three flights will be faster – approximately one every three to four weeks,' he said. He did not say, however, whether he still planned to deliver a live stream about Mars that SpaceX had been promoting. Federal regulators granted SpaceX a licence for Starship's latest flight attempt just four days ago, capping a mishap investigation that had grounded Starship for nearly two months. Its last two test flights – in January and March – were cut short moments after liftoff as the vehicle blew to pieces on its ascent, raining debris over parts of the Caribbean and disrupting scores of commercial airline flights in the region. The Federal Aviation Administration expanded debris hazard zones around the ascent path for Tuesday's launch. Ahead of the launch, dozens of space fans gathered at Isla Blanca Park on nearby South Padre Island hoping to catch a glimpse of history. Several small tourist boats also dotted the lagoon, while a live feed showed Musk sitting at ground control in Starbase, wearing an 'Occupy Mars' T-shirt. Piers Dawson, 50, an Australian, told AFP he was 'obsessed' with the rocket and planned his family vacation around the launch – his first trip to the United States, with his wife and teenage son whom he took out of school to be there. Another enthusiast Joshua Wingate, a 33-year-old tech entrepreneur from Austin, said after the launch: 'I know in science there's never a failure, you learn everything from every single test so that was still super exciting to see.' With Reuters and Agence France-Presse
Yahoo
an hour ago
- Yahoo
Executive sparks backlash with dubious claim about major brand's operations: 'This is pervasive across the industry'
The Sydney Morning Herald recently interviewed a director at Shein, who revealed insights as to how the fast-fashion giant operates. Tara Skene-Haygarth is the director of product at Shein's Australian sub-brand, Aralina. She argued that Shein's on-demand model ensured that there was a bare minimum of overproduction, leaving little unused stock sitting in storage. "The on-demand model really isn't spoken about," said Skene-Haygarth, according to the Sydney Morning Herald. "I feel like for us, the operating model is quite sustainable." However, experts point out that fabric isn't made on demand. Waste from production is commensurate with the high volume of finished products Shein produces. "There are minimum order quantities, and there are typically huge amounts of excess fabrics left over from production because of this, and this is pervasive across the industry," said founder of Circular Sourcing Courtney Holm, according to the Sydney Morning Herald. Skene-Haygarth went into detail about how the fast turnaround of new products and how digital-first retail experiences are now the norm. Product photography in particular plays a big role, she said. "It's all very competitive," said Skene-Haygarth, according to the Sydney Morning Herald. "It's really about having such a unique point of view with the creative art direction, the way you shoot … So it is tough, but it's all just about performance, too." Shein is the biggest polluter in the fashion industry. By its own reports, its carbon pollution nearly tripled in three years. Fast fashion more broadly creates loads of issues. Production pollutes local waterways. Much unused stock gets destroyed by retailers. Once in a landfill, organic fibers decompose and produce methane. Along with other polluting gases, methane heats the atmosphere, exacerbates extreme weather patterns, raises sea levels via melting sea ice, and both warms and acidifies oceans. The clothing industry generates roughly 10% of global pollution. This is partly thanks to a growing proportion of clothing relying on oil-based synthetic materials. The oil production itself introduces even more atmospheric pollution. The plastics, namely polyester, shed into microplastics, which find their way into oceans. Once there, they bioaccumulate in the fish we eat and eventually in humans. These microplastics can introduce a wide range of immune, endocrine, and reproductive health problems once in the body. Which of these factors would most effectively motivate you to recycle old clothes and electronics? Giving me money back Letting me trade for new stuff Making it as easy as possible Keeping my stuff out of landfills Click your choice to see results and speak your mind. Some companies are attempting to support more circular clothing models. Trashie, thredUp, and GotSneakers are just some marketplaces that can find a second life for clothing that's otherwise on its way out. This can elongate the lifespan of existing clothing and reduce the need for buying something new. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
