Hi all,
This is my latest development with construction beginning today. I’m building three 2 bedroom units. At the moment it’s vacant land (corner block) located in one of the subdivisions in Epping Victoria. I bought it in January this year and just settled last week. It already had an approved Town Planning Permit/DA. Finance is approved based on 65% of end value. At the moment the numbers look like this:
Initial costs
Land: $308,000
Stamp duty/legals: $16,000
Council Application Fees: $1000
Land Surveyor costs: $3,500
Total Costs: $328,500Construction
Total build: $250,000
Working drawings/engineering/soil report/energy report and Building Permit: $10,500
Subdivision (open space levy in Victoria): ZERO as it is new land where the original land developer pays
Interest: $13,000
Bank app fee: $2,500
Titles & legals: $2,000
Total Construction cost: $278,000COMBINED TOTAL (LAND & CONSTRUCTION): $606,500
The units would have a combined value of about $840,000 in today’s market. I reckon these will take about 4 months to knock up if all goes well. They are about 70m2 each in living space and single story. Rents would be around $850 pw. I’m sure the figures will vary as they normally do.
I’ve attached the floor plans (i hope it works!). I’ll put up some pics as it develops. The plumber was there today to do the underground work, followed by the concrete guy tomorrow – weather permitting
Cheers, Oscar
Hi, I'd love to see the floor plans, didn't seem to work.
Also what size block are you putting them on?
Chris.
Hi Chris
I’d love to put the plans up but I can’t manage to do it
Anyone care to help?
Cheers Oscar
Great post, I wish more people would post these types of threads up more often.
Hi Oscar. Great post. It's always good to read about people taking massive action. I find it very inspiring. thats what this site is all about.
How do you plan to sell the units? On your own or through an agent?
Hi Stephen
I'll probably do a sell some/keep some strategy with this. The margins are good where if i sell 2 and use the sales proceeds to reduce the debt, the remaining unit will have very little debt. It will be cashflow positive by a mile and i'll have good equity to draw upon when needed.
Cheers Oscar
Update.
Plumber came in on Monday and completed the underground work, including the stormwater. Also got the water tapping done. Concreter was in Tuesday. All was going well with the pre-slab work until we hit rock. Then more rock. It became an issue when larger rocks were located where the rebate was going to be. So today we had the excavator in breaking all that rock. Oh well, part of the job.
The Easter break will pause things but we should have the slab completed this time next week, weather permitting.
Oscar
<img alt="" border="0" height="496" id="lightboximg0" src="http://somersoft.com/forums/attachment.php?attachmentid=10103&d=1365411092" title="IMAG1013.jpg;
966 x 545 (@92%)” width=”880″ />Update
Today was one of those happy days – the concrete was poured and slabs are now complete. I have attached a couple of photos for viewing.
Now the rest of the build can run pretty quickly. The carpenter starts tomorrow with the wall frames followed by the roof truss. Fascia, guttering and roof tiles soon after that. Could do with more sunny days like today
Cheers Oscar
<img alt="" border="0" height="496" id="lightboximg1" src="http://somersoft.com/forums/attachment.php?attachmentid=10104&d=1365411225" style="border:solid 4px black;border-bottom-width:0px;" title="2013-04-04 11.35.07.jpg;
853 x 640 (@78%)” width=”662″ />I have managed to attached the plans too
<img alt="" border="0" height="320" id="lightboximg1" src="http://somersoft.com/forums/attachment.php?attachmentid=10021&d=1363867926" style="border:solid 4px black;border-bottom-width:0px;" title="floor plans.PNG;
213 x 320 (@100%)” width=”213″ />Nice one Oscar.
Did well to fit 3 on a tricky site like that!
Will they be torrens title or strata?
Thanks AC. The units will be individually titled with no common property, which is always nicer.
The chippies have been at it the last couple of days. Everything running smoothly and to budget despite the rain.
Oscar
Hi Oscar
Great to hear everything is running to plan with your build. Just wondering whether you're doing something particular to achieve that sort of rent? It appears 4 bedders in Epping are asking $800+ rent so I'm guessing maybe you're furnishing them or something else?
Cheers,
Tracey
Hi Tracey. I should have been clearer. I expect around $850 per week in rent for all 3 units combined.
Cheers Oscar
Hi Oscar. Will you rent them all or sell 1 or 2 of them to pay down debt?
Sell 2 and use the proceeds to pay down the debt on the remaining unit. There won't be much debt left on it after tax.
Cheers Oscar
G'day Oscar,
Great work sharing this info with the forum.
It looks like a great site for you.
It would be great to catch up for a coffee when you've got a bit of time.
For now though, keep the wind in your sails while the Autumn sun is still shining.
All the best,
Breece
hi Oscar the project looks great, could you please confrm if you did residential or commercial loan and which lender, also which builder as the price looks quite reasonable for 3 units. thanks
The loan is with ANZ, commercial. Less fuss i find.
I am also a registered builder so i project manage the build, thus the lower price. You would naturally pay more if you engage a builder.
Cheers Oscar
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