Hi guys and girls
Just thought i would post some numbers and couple photos for the new development that is going forward for next financial year, 2013-2014 .
Just signed a contract to buy 887 sqm of land on a corner next to a park/reserve.
Purchase Price $285k
Stamp Duty $15k
Deposit was 2.5 k with a 3 month settlement.
Have had plans drawn up to fit 7 double story 2 bed Units. ( when i figure out how to post photos ill attach the plans)
Current numbers are looking like
Demolish and clearing trees -15k (Lots of trees, prob one significant *sigh)
Planning and approvals 5-7k
9- 10k per home ie 70k (community titled allotments)
Open space fund – most likely not payable as the block is located next to a park… (saving 6.5k there per dwelling in SA).
Community space driveways fencing gardening etc- 50k
80 percent lend on 285k – borrow 228k. Repayments 240 a week. Rent currently 350 week. Roughly nill holding costs until Tennant's removed.
12 months of interest, holding costs (interest bills rates insurance) 15k (12 months)
135k per double storey 2 bed.
Based on 1500 dollars per sqm.
Used the highest amount of 135k per unit
135k X 7 = 945k
Interest on 1 million of construction costs/loan for 9 months – average out to around 45k-50k
Subtotal – 1467k total costs
expected value of the Units once completed is approximately $265k -$285k per unit
Working on a Conservative valuation of 260k x 7 = $1,820,000
net = $353,000
No sales or gst cost inc in these calculations because they are being built for long term rental for the NRAS.
Market rental is approximately $260 a week in this area. meaning the units will have to be rented out at 80% market value. ie $200 a week
In exchange NRAS supplements approximately 9500-10k a year (indexed for inflation and market rent rises). Roundup to $200 bucks a week
Each unit will have a positive cash flow of approximately $150 per week after expenses
$150 x 7 = $1050 a week
x 48 weeks in the year assuming 4 weeks vacancy
= $50,400 a year.
Removed the 4 and 5 unit site calcs
Sorry guys I left my calcs on after the 50,400 for if it turned out to be a 4 unit site or a 5 unit site. Which was what it was last week until the building designer was told POS for each dwelling only had to be 11 sqm.
Can ignore that if you want.alfrescodiningParticipant@alfrescodiningJoin Date: 2012Post Count: 160
Hi Wilko. Where is the development site?
In south australia in the suburb morphett vale. It's down south about 3 minutes from the new "redone properly" expresswaylandt64Participant@landt64Join Date: 2004Post Count: 166
I've got a block of land the same size but the only town planner I've gone to so far has suggested the only way i will make money is to renovate the house currently on the block and then build 2 x 2 storey townhouses. I'm wondering how you managed to fit 7 x 2 bedroom houses on your block. Did you have to go to a couple of planners to come up with this option. Two problems we have is that the block is in an Aboriginal overlay area (I may be giving that the wrong name), which means once you have more than 3 on the block you have to get special permission, and we have a Right of way about a metre wide at the back. Do you have any suggestions?
Didn't go to a town planner. Initially I read through the development plan for the area. Looked at the requirements for the area I was in.
I then had a building designer drawn up a rough site plan.. I took this to the local council for feedback. They provided some more advice about car parking and required areas for Private open space. Learning that 2beds required only 1 carpark. And only required 11sqm of minimum POS. I had the building designer edit the original on these conditions. Which took it from 5 units up to 7 units.
The units themselves are also designed based on some townhouses being built in highly dense areas of adelaide and new developments like lights view. They are only 4m externally and 3.7m wide internally. But they have dining Galley kitchen and lounge downstairs with a toilet under the stairs. And upstairs 2 bed and separate toilet and bathroom.
What suburb is your property located in?
Right or ways usually have certain conditions like you cannot build a unremovable structure over it.
ie you could pave the area but if someone needs access your pavers come up.
is the right of way for a sewage pipe?landt64Participant@landt64Join Date: 2004Post Count: 166
The block is in Frankston, Victoria. I think the easement is for the water company and it's right at the back of the property so you'd think it would be easy to work around. I'm going to do Troy Harris's Rookie Developer day next week so hopefully i'll get lots of useful information.
It's just a difference in council policy. Why the council I bought in to want and require this form of development and have made it appealing to developers to get them involved.mbuildingParticipant@mbuildingJoin Date: 2012Post Count: 28
Wilko, number looks good!
May i ask what is a zoning on property??