Forums / Property Investing / Value Adding / My latest development – 4 dwellings in Melbourne

Viewing 20 posts - 41 through 60 (of 64 total)
  • Profile photo of oc1oc1
    Participant
    @oc1
    Join Date: 2012
    Post Count: 148

    September has been wet alright! The constant rain and the recent wild winds have really slowed down building; especially when the next two trades are your roof plumber and renderer frown

    Still, all the brickwork is now finished. Pretty good job too. The front unit also had the dutch gable completed, which looks nice. I love dutch gables!

    The lower level roof tiles are on site as well ready to go.

    Oscar<img alt="" border="0" height="496" id="lightboximg0" src="http://somersoft.com/forums/attachment.php?attachmentid=11200&d=1380671803&quot; style="border:solid 4px black;border-bottom-width:0px;" title="brickwork finished and dutch gable.jpg;
    1016 x 762 (@66%)” width=”662″ />

    <img alt="" border="0" height="496" id="lightboximg1" src="http://somersoft.com/forums/attachment.php?attachmentid=11201&d=1380671822&quot; style="border:solid 4px black;border-bottom-width:0px;" title="brickwork finished.jpg;
    973 x 730 (@69%)” width=”662″ />

    Profile photo of Chops_47Chops_47
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    @chops_47
    Join Date: 2013
    Post Count: 2

    Considering the block is 1100m2 i imagine it should be possible to fit 5 x 2bd units/townhouses. Any particular reason you chose to build 4 as opposed to 5?

    Also, given you will be on-selling, is your preference to sell a few off the plan or do you just wait until completion?

    Profile photo of oc1oc1
    Participant
    @oc1
    Join Date: 2012
    Post Count: 148

    Hey Chops, each area has their own rules which go a long way to dictate how many you can get on the block. Sometimes it is council imposed, other times it's what the market wants. In this case 4 was ideal.

    I'm a fan of selling either before or during a build. However, you tend to get a bit more after they are finished.

    Oscar

    Profile photo of Solomon10Solomon10
    Participant
    @solomon10
    Join Date: 2010
    Post Count: 134

    How is the development progressing Oscar?

    Profile photo of oc1oc1
    Participant
    @oc1
    Join Date: 2012
    Post Count: 148

    Going very well. Sold what i needed to sell and keeping the others.

    Should be all finished by the end of the month. Will post up photos soon.

    Profile photo of Solomon10Solomon10
    Participant
    @solomon10
    Join Date: 2010
    Post Count: 134

    Congrats,sounds good. I have been watching with interest, will be good to see the finished product.

    Profile photo of oc1oc1
    Participant
    @oc1
    Join Date: 2012
    Post Count: 148

    Nearly finished now. A few photo's are attached. Carpet, floorboards and landscaping are the main items left now. so by mid Feb all will be completed, including the subdivision.

    Cheers

    Oscar<img alt="" border="0" height="496" id="lightboximg0" src="http://somersoft.com/forums/attachment.php?attachmentid=11754&d=1391061883&quot; style="border:solid 4px black;border-bottom-width:0px;" title="driveway 1.jpg;
    951 x 713 (@70%)” width=”662″ />

    <img alt="" border="0" height="496" id="lightboximg1" src="http://somersoft.com/forums/attachment.php?attachmentid=11755&d=1391061915&quot; style="border:solid 4px black;border-bottom-width:0px;" title="driveway 2.jpg;
    1100 x 825 (@61%)” width=”662″ />

    <img alt="" border="0" height="496" id="lightboximg2" src="http://somersoft.com/forums/attachment.php?attachmentid=11756&d=1391061934&quot; style="border:solid 4px black;border-bottom-width:0px;" title="kitchen.jpg;
    1501 x 1126 (@45%)” width=”662″ />

    Profile photo of Cards DarwinCards Darwin
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    @cards-darwin
    Join Date: 2013
    Post Count: 4

    Outstanding – Well done!

    Profile photo of TheFinanceShopTheFinanceShop
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    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    Looking good oscar – what material have you used for the second level?

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
    Email Me | Phone Me

    Residential and Commercial Brokerage

    Profile photo of oc1oc1
    Participant
    @oc1
    Join Date: 2012
    Post Count: 148

    Now that everything has settled, here are the final numbers:

    Interest costs an extra $5k
    Building costs an extra $20k, mainly due to site costs and higher quality specs.

    Total costs $1.38m

    End values came in higher. The two units I sold during frame stage would e worth another $30-40k now.

    Total sales price of 2 units sold at the time: $824k
    Total value of units kept: $1.1m

    The profit margin is around 40% and a pretty good dollar profit. Total rent on the kept units are $870pw gross. Nice

    Last month I found another one in the suburb nearby to replicate the same thing. The big blocks are hard to come by.

    Any questions, just shoot.

    Oscar

    Profile photo of alfrescodiningalfrescodining
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    @alfrescodining
    Join Date: 2012
    Post Count: 161

    G’day Oscar.

    Is rent from properties your only income? If so, how do the banks treat your income when you apply for loans?

    Profile photo of MrWinfieldMrWinfield
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    @mrwinfield
    Join Date: 2009
    Post Count: 17

    Hey Oscar, have been following this post since day 1, great to see 40% profit margin, well done.

    Profile photo of WaitNoMoreWaitNoMore
    Participant
    @stefanz
    Join Date: 2014
    Post Count: 14

    40%………WOW.. you’ve done extremely well, good luck with next one.
    Do you sub out as a builder for developers?

    Cheers
    Stefan

    Profile photo of u36mau36ma
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    @u36ma
    Join Date: 2011
    Post Count: 34

    Hi Oscar, late to this post, but looks amazing. Great achievement!
    With the profit do you start funding your next project yourself or is it still better to get bank loans and pay the interest?
    Cheers,
    Matt

    Profile photo of oc1oc1
    Participant
    @oc1
    Join Date: 2012
    Post Count: 148

    Thanks guys.

    @ AC. My loans are mainly commercial loans and get through eventually with rents, development profits and consulting income. I go direct to banks as well as using a good broker.
    @ Stefan, Thanks. Yes I do offer that service.
    @ Matt, Cheers. I still prefer to borrow as much as possible for each development as you can keep some powder dry and have multiple developments at the one time.

    Profile photo of Steve RSteve R
    Participant
    @retissors
    Join Date: 2014
    Post Count: 4

    Hi Oscar,
    Nice work. Are the majority of your developments in NSW? Can you recommend a savvy broker that is switched on with the process of getting money for building projects for developers that are the registered builder? I have found previously that when a bank finds that i am the builder and the developer they become increasingly difficult to deal with. Any suggestions?
    Thanks,
    Steve

    Steve R | In Design - Project Designers & New Home Builders
    http://www.indesignonline.com.au
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    DIY Registered Builder - Ask me how?

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    Hi Oscar,
    Nice work. Are the majority of your developments in NSW? Can you recommend a savvy broker that is switched on with the process of getting money for building projects for developers that are the registered builder? I have found previously that when a bank finds that i am the builder and the developer they become increasingly difficult to deal with. Any suggestions?
    Thanks,
    Steve

    Many do owner builds but LVR is limited to 60%. One lender will 75% and the other will do 80% (or more depending on the strength of the application).

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
    Email Me | Phone Me

    Residential and Commercial Brokerage

    Profile photo of exposedexposed
    Participant
    @exposed
    Join Date: 2014
    Post Count: 8

    None of ‘complete development solutions’ numbers work, request address of said development and check on Rpdata what they sold for. 2 year project for 12-14% return.

    The OP Should post address for potential customers to see of results rather than relying on his word :)

    Profile photo of wilko1wilko1
    Participant
    @wilko1
    Join Date: 2010
    Post Count: 510

    1, 924,000

    – costs of 1,380,000

    = 544k gross profit

    544,000/1,380,000
    = 0.394 x 100 = 39.4 % ( and he said approx 40%)

    His gross return profit calcs are fine. I think you need to change the batteries in your calculator.
    And why would he post the address online. If you wanted to know badly a PM would suffice and if you really wanted to know you could search sold prices for the price he said it sold for, and with the sqm size.

    Profile photo of exposedexposed
    Participant
    @exposed
    Join Date: 2014
    Post Count: 8

    1, 924,000

    – costs of 1,380,000

    = 544k gross profit

    544,000/1,380,000
    = 0.394 x 100 = 39.4 % ( and he said approx 40%)

    His gross return profit calcs are fine. I think you need to change the batteries in your calculator.
    And why would he post the address online. If you wanted to know badly a PM would suffice and if you really wanted to know you could search sold prices for the price he said it sold for, and with the sqm size.

    If you sold for the price in the feaso why wouldnt you post adddress online? Posting address people can confirm its all fine in the numbers depertment…more proof more potential customers. You need to check on RPdata once you do that come back here for a discussion.,, i know the address and have checked.

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