OK, here we go. Jump on if you’re game and enjoy the ride...
This is the thread where I intend to report every step of the way on the development of my newly acquired development site in Mona Vale on Sydney’s Northern Beaches. I purchased it in June 2006 and it will settle in September 2006. I'm locked into a 12 month lease with the vendor as part of the negotiation process so can't start developing until at least September 2007, but there's a fair bit of work to do before then. Here’s some background for those interested:
Somersoft thread: Just bought my new development site in Sydney
I will also be asking many a question of the seasoned developers here at Somersoft, and looking forward to sharing all of their excellent guidance along the way.
The intended development at this stage looks something like this:
3x3 bedroom townhouses of about 150m2 each over two levels.
Each townhouse to have a single garage and ensuite to master bedroom.
Full landscaping of the site on the non-built areas.
Separate courtyards for each townhouse.
Building standard to be at a premium level but within sensible cost constraints.
My rough budget is:
Land $690K (done)
Conveyancing purchase $1K (done)
Stamp Duty $27K
Stamp Duty on mortgage $5K
Finance Establishment $2K
Demolish costs $30K
Build costs $600K
Consultants $60K
Rates and Taxes $22K
Selling Fees $15K (one only)
Contingency $28K
Borrowing Interest $100K
TOTAL Costs $1.6M
Value on completion at $700K each $2.1M
Profit Margin $500K
Those numbers are still rubbery and I won't have a firm handle on the development cost and associated interest costs until I've finished the design phase.
I’ll break this development down into five major stages and report on each as we go. These stages are:
1. Design the development
2. Achieve development approval
3. Finance the development
4. Develop the site
5. Sell and/or Lease the completed development
So, in the spirit of getting right in to it lets kick off with Stage 1:
Design the Development
To that end, might I start by asking fellow forumites if they have any preferred architects / building designers that they have used in the past that might be suitable for designing this development on Sydney's Northern Beaches? I’ll see what feedback I get and do some research of my own then post on which direction I decide to take.
Oh, and by the way, this is the first development I've done so have I bitten off more than I can chew? Is this likely to end in unmitigated disaster?... Maybe, but where would the fun be in not even giving it a go! Who knows, I might get 12 months down the track and decide I'll make a better margin by selling the site with a DA approval than by developing it myself, but at this stage I want to build it so am moving in that direction.
Thanks in advance,
Michael.
This is the thread where I intend to report every step of the way on the development of my newly acquired development site in Mona Vale on Sydney’s Northern Beaches. I purchased it in June 2006 and it will settle in September 2006. I'm locked into a 12 month lease with the vendor as part of the negotiation process so can't start developing until at least September 2007, but there's a fair bit of work to do before then. Here’s some background for those interested:
Somersoft thread: Just bought my new development site in Sydney
I will also be asking many a question of the seasoned developers here at Somersoft, and looking forward to sharing all of their excellent guidance along the way.
The intended development at this stage looks something like this:
3x3 bedroom townhouses of about 150m2 each over two levels.
Each townhouse to have a single garage and ensuite to master bedroom.
Full landscaping of the site on the non-built areas.
Separate courtyards for each townhouse.
Building standard to be at a premium level but within sensible cost constraints.
My rough budget is:
Land $690K (done)
Conveyancing purchase $1K (done)
Stamp Duty $27K
Stamp Duty on mortgage $5K
Finance Establishment $2K
Demolish costs $30K
Build costs $600K
Consultants $60K
Rates and Taxes $22K
Selling Fees $15K (one only)
Contingency $28K
Borrowing Interest $100K
TOTAL Costs $1.6M
Value on completion at $700K each $2.1M
Profit Margin $500K
Those numbers are still rubbery and I won't have a firm handle on the development cost and associated interest costs until I've finished the design phase.
I’ll break this development down into five major stages and report on each as we go. These stages are:
1. Design the development
2. Achieve development approval
3. Finance the development
4. Develop the site
5. Sell and/or Lease the completed development
So, in the spirit of getting right in to it lets kick off with Stage 1:
Design the Development
To that end, might I start by asking fellow forumites if they have any preferred architects / building designers that they have used in the past that might be suitable for designing this development on Sydney's Northern Beaches? I’ll see what feedback I get and do some research of my own then post on which direction I decide to take.
Oh, and by the way, this is the first development I've done so have I bitten off more than I can chew? Is this likely to end in unmitigated disaster?... Maybe, but where would the fun be in not even giving it a go! Who knows, I might get 12 months down the track and decide I'll make a better margin by selling the site with a DA approval than by developing it myself, but at this stage I want to build it so am moving in that direction.
Thanks in advance,
Michael.