broadmeadow development

[lizzie]

hi folks

finally worked out how to attached these darn plans for my 4 townhouse development.

the plans are in council. no objections. only requirement was a landscaping plan and quality surveyors costings - another $2000! - but all looking good.

is a inner/centre ring location, five minutes walk to train station (2 stops to city) 2 blocks from main road and has wonderful wide rear lane access.

currently has older 3 bedroom rented house on it. cost a steal at $305,000 (plus costs) so turned out to be around $80k per site - i grabbed it before it made the papers for advertising. out of town vendor, out of area salesman - gotta love it.

unfortunately, because i thought the council would take ages i put tenants in on a 12 month lease, so can't start building until after august 2008 - but it will probably take that long to arrange a builder and finance, once council gets it's act together and approves

currently looking for another site - but don't tell hubby .... sssssssh

 

[lizzie]

i'd better put on the shadow diagram as it show how the townhouses are situated on the block ...

not nearly as dramatic and exciting as michael whyte's (thank goodness), but still pretty thrilling for us.

we have a builder lined up, but want to get some other quotes to make sure he's the best option ....

 

[skater]

What excitement! Can you make the plans a little bigger. I found them hard to read. Did Council give you a time frame to go by, I know some of them like to delay things as long as possible. How much do you think they will be worth when complete?

 

[lizzie]

i just had a email from council - they expect to have a consent answer by next week ...

try clicking on the thumbnails - they'll (hopefully) increase in size for you .... although i am totally hopeless at this attachment thing. took me six months to work out how to compress to attach in the first place.

.... hmmm that didn't work - perhaps sim can increase their size ...

 

[skater]

i just had a email from council - they expect to have a consent answer by next week ...

try clicking on the thumbnails - they'll (hopefully) increase in size for you .... although i am totally hopeless at this attachment thing. took me six months to work out how to compress to attach in the first place.

.... hmmm that didn't work - perhaps sim can increase their size ...

I can't attach stuff either.

Wow! That's quick. Bet Micheal wishes he could get stuff done so quick.

 

[Buildn]

Hi, im 26 from newcastle, this is my first post, i have just purchased my first investment property at Elermore Vale for a total cost of $350,000, in Neighbourhood Centre Zoning with land area 935sm. This is capable of holding four 2 bedroom villas at a cost of $87500per site. I have spent a fair bit of time researching the local property market and the property you have purchased is an insane bargain, you must be extremely pleased!!! I have found in newcastle most real estate agents realise the potential of the properties and usually development sites are fairly overpriced so i figure you would be more than impressed with your sites price. Since this is my first development with next to no experience and i have only joined this forum tonight i was wondering if i may ask you a few questions from time to time since you are from newcastle and seem to be an experienced member of this forum?

 

[lizzie]

as away on the forum as there are several "developers" out there who are further along in their learning curve than i am.

yes, i am thrilled with the price and the location and you are right - most agents in the newcastle area know exactly what is what zoning (as they should), but they then tend to put a premium on the price so there is very little left for the actual developer.

that's why i look at a lot but don't buy ... until the "right" one comes along

i do have my eye on another ideal location development block (can fit 3 separated townhouses - so could torrens in the future), but it is way overpriced - and i'm not cashed up yet.

hoping it will still be there when my finances finally fall into place - then i'll lowball ...

 

[lizzie]

da approved - no conditions - to easy ...

 

[Soren Lorenson]

Lizzie, well done, sounds like your gonna make a motza on this one,

i too am interested in developing in the future but need to build up my skills first.

can i ask a few questions? dont answer any you dont want to

how much do you calculate/estimate to make in profit from each?

looking at your pdf, you have winter 9am/12/3pm shadow diagrams; i thought they worked off mid season? you have serious overshadowing on your neighbour to the right as you look at you site from the main road early morning, what are your councils requirements here?

roughly how much does your building designer cost for drawings and planning submissions? as i would look to do as much of this myself as i can.

thanks for any advice

 

[luce.rocks]

Well done Lizzie! How exciting for you! Can't wait to follow this one

 

[lizzie]

can i ask a few questions? dont answer any you dont want to

go for it - i will try to answer as best as i can from personal experience

how much do you calculate/estimate to make in profit from each?

return should be around 23% profit on total costs - equal to around $300k. but as we are holding, with no intention to sell, we are more interested on rent return which should be around 7% - taking depreciation into consideration we're looking at around 10%+ on completion.

looking at your pdf, you have winter 9am/12/3pm shadow diagrams; i thought they worked off mid season? you have serious overshadowing on your neighbour to the right as you look at you site from the main road early morning, what are your councils requirements here?

council does have minimum shadowing requirements allowable per day. i'm not sure what they are but architect and council do - that's what i pay them the money for. remember that the shadow diagrams are for the shortest day of the year.

roughly how much does your building designer cost for drawings and planning submissions? as i would look to do as much of this myself as i can.

around $14,000 for plans, landscape design, construction designs, quality surveyor, surveys and water management design.

council and waterboard fees will come in around $11,000.

 

[Soren Lorenson]

thanks Lizzie,

looking at your figures then you have

23% profiit - 300K, wow thats 75 grand a piece, if you do this twice a year, you make 600K salary, jesus you'd need 10 battler day jobs to earn this

300k @ 23% - This means total costs 1.3Million

Purchase price 305K, so build/holdingcosts/fees etc = 0.7mill roughly,

so say each property worth 1.3/4 = 325K in general terms

at 7% yield you will charge 325*0.07 pa or 440 per week?

7% yield sounds tremendous only 2stops from city, your in newcastle right, i've never been there, anyway

are they 2/3/4 bed townhouses?

looking at costs for 1million total expenses IO @ say 8% = $1538 per week leaving you with a slight gain on gross equity.

how did you do the loan? residential construction loan? did you need alot of upfront capital? how much of your own money do you need to stump up?

I note you have dual access by main road and wide lane access this must allow extra options for getting 4 properties on the block, by the way how big is the block?

i'm seriously impressed by those numbers and congrats again

 

[lizzie]

at 7% yield you will charge 325*0.07 pa or 440 per week?

sorry, i misled - the 7% yield will be on what it cost us to build - not sell cost. rent will be in the low to mid $300's/wk.

 

[lizzie]

are they 2/3/4 bed townhouses?

how did you do the loan? residential construction loan? did you need alot of upfront capital? how much of your own money do you need to stump up?

I note you have dual access by main road and wide lane access this must allow extra options for getting 4 properties on the block, by the way how big is the block?

2 bed, 2 bath plus extra toilet downstairs. configured like this so that each bedroom basically has it's own bathroom to increase our rental market.

haven't got the loan yet - can't build until after august - but my broker believes it will be no problem as the equity in our ppor is going up daily .... however ... we are in the process of cashing up a few things to ensure funding is not a problem in at tightening market.

rear lane access definately made a difference as block space was not being taken up by driveways and turn circles. the block is 675m2 - 14 metre frontage. my architect told me never to look at anything under 11m wide as anything under that would be impossible to get a turn circle in.

 

[Soren Lorenson]

sorry, i misled - the 7% yield will be on what it cost us to build - not sell cost. rent will be in the low to mid $300's/wk.

thanks lizzie, yes i realised this this morning, 334/wk would give you 7% yield on 4 units @ 1million total build costs. which i expect is more reasonable or gettable.

 

[Soren Lorenson]

2 bed, 2 bath plus extra toilet downstairs. configured like this so that each bedroom basically has it's own bathroom to increase our rental market.

haven't got the loan yet - can't build until after august - but my broker believes it will be no problem as the equity in our ppor is going up daily .... however ... we are in the process of cashing up a few things to ensure funding is not a problem in at tightening market.

rear lane access definately made a difference as block space was not being taken up by driveways and turn circles. the block is 675m2 - 14 metre frontage. my architect told me never to look at anything under 11m wide as anything under that would be impossible to get a turn circle in.

wow!, i'm amazed 4 units on 675m2 is possible, thats excellent,

one final question, what is your technique for getting bargains before they are advertised, do you pound the streets, let us know your methods?

cheers

 

[stumunro]

Congratulations Lizzie, you make it sound so easy when we all know it isn't. You are a true professional Thanks for all the figures, all good information for people wanting to walk in your foot steps.

 

[lizzie]

one final question, what is your technique for getting bargains before they are advertised, do you pound the streets, let us know your methods?

that one was pure luck - found it on a domain.com alert and had an accepted offer in place the next day, before it made it to the papers. apparently the agents phone was running hot after the weekend but the owners stuck to our handshake agreement - i like dealing with people with integrity.

might not be so lucky next time.

next one i have my eye on is overpriced - so i'll let it sit for a while until the market goes stale on it, interest rates go up and the kids are desparate to sell (owner in nursing home).

 

[pi2012]

Well Done Lizzie.
We are actually on the same path...in the process of subdividing our PPOR which sits on a block on 640sqm and trying to get DA for 3 dwellings.
I have got couple of questions if you don't mind:
1. What sort of dwellings you are building as in double storey or single storey?
2. What is the area of each dwelling?
3. Do you know the construction costs as in $$/sqm for single storey and double storey?
4. How are you planning to structure the loan...
5 Could you please help me in calculating the % profit margin.
6. Are you going to get Residential construction loan and how much LVR cos for us, we probably gonna need more than 90%LVR.
More details about the development in the following thread:
http://www.somersoft.com/forums/showthread.php?t=39633\
Thanks in advance..

 

[lizzie]

1. What sort of dwellings you are building as in double storey or single storey?
2. What is the area of each dwelling?
3. Do you know the construction costs as in $$/sqm for single storey and double storey?
4. How are you planning to structure the loan...
5 Could you please help me in calculating the % profit margin.
6. Are you going to get Residential construction loan and how much LVR cos for us, we probably gonna need more than 90%LVR.
More details about the development in the following thread:
http://www.somersoft.com/forums/showthread.php?t=39633\
Thanks in advance..

1. double story
2. gross floor area (including garages and balconies) 102m to 122m2
3. looking at around $1200/m2 but this covers driveways and landscaping.
4. selling down some dog ip's atm which will free up our loc - may have to have small construction loan for difference.
5. pm me your email address and i'll send you something.
6. hopefully not ...