Hi all. Advice would be kindly appreciated
I own 2 x 700m2 blocks next door to each other in a suburban street in Parramatta region of Sydney. Both blocks have a 3 b/room home sitting on them which are in great condition. Given the combined block size of the two would be 1400m2, I am seriously considering whether the development of 4 x townhouses/duplexes would be a good way to better use the 2 blocks and end up debt free.
One of the two properties is unencumbered. The other owes approx 450K. Both properties have recently been valued at 550K.
Assuming borrowing capacity was no barrier, what are some suggestions for the best way to move forward? Ultimately, id like to keep two and sell two, and have no debt.There appear to be a handful of builders who offer duplex properties that would readily fit thee two blocks.
Thoughts?
Hi!
Good plan! Have you worked out what the TH's will sell for? Work backwards from there. You'll need to then factor in land cost, construction cost and other cost such as holding, planning costs, landscaping (the list goes on)
Here are some good sites to help with looking at this more.
http://www.homedesigndirectory.com.au/calculators/ConstructionCostEstimatorPage2.shtml This one is good for rough construction costs.
http://www.parracity.nsw.gov.au/development/Draft_Parramatta_LEP/interactive_map. This one is to look at the property further to see if there are any overlays etc (I could be wrong on this but it looks similar to the Vic Gov site) easy enough to find out anyway.
The other thing which the finance guys will help you with is that when you do 4 units you step into commercial lending so you need to see if the higher cost of finance is worth, more difficulty getting lending etc.
I would have a quick chat to an achitect to see if maybe having something designed to suit the block would be better. Also if you are brand new at this it would be better to pay them to help you get it through council to get it right first time. Have a search on the forum for subdivision, building townhouses etc plenty of posts on it! Good luck it is well worth doing (only if there is plenty of money in it nobody develops for fun). Work on a 25% profit margin and see if the deal is anywhere near it.
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeThanks juvanix for posting something that really didn't help euro73 with his problem.
Spruik off, or better yet if you are legitimate (look it up) then get back to us with something that helps people rather than sells your product.
Bye, Bye.
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeI think i love you DWolfe
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