I am hoping to get some thoughts, ideas, advice regarding my plans to carry out a dual occupancy development to keep as an investment rather than subdividing and selling.
I am currently looking at a property with 800m2 as a potential site. It has an existing residence at the front, rented at $200pw. I dont have an idea of internal condition as the tenants wont allow the agent to take photos for me and I live in Sydney. I can only assume from the rental figure that it is average to poor condition. The area available at the rear is approx 380m2 which seems big enough to build on. I am doing my figures on a purchase price of $250k.
I am estimating a cost of $150k to build a 3 bedroom home with LUG. Would this be realistic?
I have been quoted by an external consultant $15000 draw up all the plans and submit them to council which includes all the surveys, designs and reports including the building permit. Do you think this is a good price?
Total cost of construction plus landscaping, paving plus say $20k on renovation of the front house comes to just over $200k. I should get approx $500pw return from both houses upon completion.
I have not done anything like this before and as such wanted to ask about any tips, tricks or traps etc.
I am thinking about approaching a display home builder (what do you call them?) to see if they would do the development. Do you think this is a good idea? Does anyone know if this type of builder does all the DA, BA work as well?
Is there anything else I need to take into consideration?
Thankyou very much for any time you put into this situation for me.
Andrew
I am currently looking at a property with 800m2 as a potential site. It has an existing residence at the front, rented at $200pw. I dont have an idea of internal condition as the tenants wont allow the agent to take photos for me and I live in Sydney. I can only assume from the rental figure that it is average to poor condition. The area available at the rear is approx 380m2 which seems big enough to build on. I am doing my figures on a purchase price of $250k.
I am estimating a cost of $150k to build a 3 bedroom home with LUG. Would this be realistic?
I have been quoted by an external consultant $15000 draw up all the plans and submit them to council which includes all the surveys, designs and reports including the building permit. Do you think this is a good price?
Total cost of construction plus landscaping, paving plus say $20k on renovation of the front house comes to just over $200k. I should get approx $500pw return from both houses upon completion.
I have not done anything like this before and as such wanted to ask about any tips, tricks or traps etc.
I am thinking about approaching a display home builder (what do you call them?) to see if they would do the development. Do you think this is a good idea? Does anyone know if this type of builder does all the DA, BA work as well?
Is there anything else I need to take into consideration?
Thankyou very much for any time you put into this situation for me.
Andrew
