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Thanks perthguy, that's good to know.

Thanks HD.

Thanks Serendip that's what I thought too. Which leads me to my next question. What's the point in land banking a development site?

When doing a feasibility study on a project, do you calculate the value of the land on it's current value or what you paid for it? What I am trying to say is if for example you purchased a block 15 years ago for $100,000, and today its worth $500,000. If you decide to build a duplex would you...

Thanks sanj and z6. Originally I wanted to build our ppor their. (Single dwelling) when we approached the daftman he told us build a duplex as it will set you up for life. Goes to show how important DD is.

Thanks Hobo, makes sense. Every house in the suburb is getting bulldozed for townhouses, would love to know how the builders are making a profit. The only things I can think of is cheaper building cost and building say 3 or 4 rather than 2.

hang on a minute!!! I may have given you wrong information. Yes currently land value is $700k but I paid $535K 5 years ago. Does this change things??:o

I understand now. So I would make more money selling the land than actually building? I guess that's why they are building 3 or 4 dwellings in the one block. No profit in 2.

By the way thanks for all the replies, really appreciate it.

So if current land value is $700K, I need to portion $350K for each town house?

Now Im really confused :confused: so I need to factor in land value for each townhouse?

But I own the land out right so do you still have to calculate land value in your feasibility?

True, I didn't get that far as I knew I was missing a lot of the construction costs.

Yes thank you! demolition! Open levy fee I think are for 3 or more but could be wrong? :confused: Add another $100k to construction cost?

Hi Everyone, Been thinking of developing an IP and build 2 town houses side by side (Duplex). I am very green when it comes to developing and have listed some figures below. Please let me know what I am missing and pick the holes :D Duplex development: Current value: $700K Land size...