The financing is going down to the wire! Managed to get finance for the Melbourne project build (already started but not quite at the base stage yet) with the lender of our choice about a week ago. This allows a bit more $$ being at my disposal for the Brisbane project.
The last week has been busy for MB's team trying to get the settlement finance happening for tomorrow. Lender had massive system outage on Friday, of course . Involved me doing a bit of running around on a Saturday finding a lawyer who is also a notary (?didn't even know what a notary was ) before the bank closed its doors at 3PM. It was fun because I was also working in two different places that day...
Fingers crossed an approval is there tomorrow morning for a same day settlement. Yes every last day of that looooong settlement period was required in the end.
So far completed:
Structural engineering drawings
Hydraulic engineering drawings
Documents that are pending and almost through:
3D render for sale purposes (draft looks good )
Detailed interior design spec (to be sent to builders as soon as complete) along with lots of quotes from Harvey Norman comm, aircon people, concrete people, etc
Plumbing approval from BCC
Tender documents went out a week ago with the detailed spec to follow as soon as complete. Expect to know fixed price of construction by end of April.
A few wins:
No connection fee for gas supply (saved somewhere between a few thousand to tens of thousand)
Upstream storm-water connection not required due to the slope of the site to both street frontages (another few thousand)
Operational works approval not required (another)
Expected end-value at this stage should be 100K more than initial feaso numbers
Big question now is the cost of construction, apparently getting expensive by the week in Brisbane, so could well wipe out all the money saved/extra sales money, and some. Oh well...
So all in all, pretty good progress thanks to a very efficient and tireless team, you guys are probably reading I know so big thanks!
I had a full time researcher engaged in 2011 to investigate the potential of the market and found that the average return on units of 20 or less was around 15% so I abandoned the idea of recommending these for my clients as budget blow outs can easily eat into the profits.
However, if you are on a good site without major dramas then costs over runs can be kept low.
I am now looking a larger sites for my clients. However, happy to assist with duplex or smaller developments as well.