Caboolture duplex completed

[aaarghhh]

Hello Everyone

I've finally completed my duplex build in Caboolture and I wanted to show off a few pics.

I initially purchased a quarter acre RES B block near Caboolture train station in October 2006. The block has a stunning example of 1970's architecture and has a brick built 3 bedder / 1 bath at the front of the block with a good tenant.

The backyard is wonderfully large and has great potential. Currently tenanted by a 7ft carpet snake living in a disused concrete BBQ. The Front tenant is good and always pays on time. The BBQ tenant was evicted and never to be seen again.

Pretty isn't it. The two mango trees, (t)rusty hills hoist, 1970's BBQ, compost bin and garden shed/spare bedroom (yes it had power fed via a 1970's extension lead) have to go.

 

[Celeste]

Hi aaarghhh

Well done looks great.

 

[aaarghhh]

I wanted to increase the density of the bock and add a town house or two or maybe a duplex whatever..... Didn't really have a clear idea, but knew I could (hopefully) make more money then the single rental income it has. I spoke to a bunch of people and council and came up with a design.
and

Then I bypassed council and spoke to a builder and a building certifier instead. Decided on a Duplex. The back block has a sewer main crossing the block in the most inconvenient position. Right where I want to build. Local council rules are the sewer main must either (a) be bridged in $22K concrete or (b) moved to a boundary $14K. I picked option (b) which was the cheapest and fastest option. Sewer main realignment was finished late April.


Hunted for finance and approved for construction loan.(yippee!!) I spent several months of too-ing and fro-ing with the certifier until he was satisfied with the design and engineering specifications and the Duplex proposal was finally issued with building permit/plumbing permits and other approval crap. Building started last week in July 2007.

 

[aaarghhh]

I only work part time 4 days a week and am lucky enough to have every Thursday off. And every Thursday I visit the duplex site and snap a few pics. I have uploaded a few pics to the forum over the last few weeks. The builder took thirteen weeks to completion. I did the paint and landscaping my self.

Here is the finished product:

Landscaping :

 

[aaarghhh]

More landscaping:

I HATE laying turf (173 sq metres) and I really HATE wheelbarrowing gravel especially 8 cubic metres in the sun. Paving is another pet hate.

 

[aaarghhh]

Internals: Very open plan in design. I thing it works. Any thoughts would be appreciated.

Kitchen / Dining / Lounge area.

 

[aaarghhh]

Master Bedroom w/ensuite and my favourite shot Kitchen at night.

Now all I have to do is try and flog it to the local hospital staff that it is an alternative to the local competition. Now all I need is a really good valuation.....But that will be another story.

Thanks for viewing and letting me share.... rant.....rave..... etc....
Aaron

 

[MissMuffitt]

Looks great!
Talk about value adding...
Congratulations on a job well done.

 

[aaarghhh]

Looks great!
Talk about value adding...
Congratulations on a job well done.

Thanks MM

It s the valuation that worries me. How conservative will it be?

Aaron

 

[McBrain]

Looks great!

Can you give us an idea of roughly how much each unit cost?

Cheers

 

[sparky23]

Hi aaargh!

Looks good and a respectable time frame! What have your costs been all up and what do you hope the valuation will come in at compared to similar local properties?

 

[steveadl]

Absolutely brilliant Aaron! Exactly what I want to do to one of my properties - knock/move the old one down and build a duplex. What are the dimensions and size of your block? From the pics it looks very similar to mine.

And what was the cost all up if you don't mind me asking?

They look great, although I'm hoping to get 3br on mine depending on costing. Was yours a duplex design, or two houses stuck together?

 

[omegachild]

I was just wondering, what sort of profit margins can one expect in a duplex developement? I was looking for something similar in QLD but the figures just did not add up to profit!

Thanks in advance!

 

[aaarghhh]

Looks great!
Can you give us an idea of roughly how much each unit cost?
Cheers

Yello McBrain
The signed contract for the duplex was $247K
I have spent $300K for all the extras - landscaping, water tanks, concrete drive, window furnishings, carpet in bedrooms, aircon etc

Each duplex unit is just under $150K each.

Duplex $300K
Existing house and block $260
Total cost - $560K

Hi aaargh!
Looks good and a respectable time frame! What have your costs been all up and what do you hope the valuation will come in at compared to similar local properties?

Hello Sparky,

The valuation does worry me. Further down the same street are three 800 sq metre blocks under contract to an interstate client. Perfect for 4 storey units blah blah blah.... List price for all three is $930K. I've heard on the grapevine the valuation came in only at $600K mark. Not enough for the 80% lend I suppose. Anyway. It's difficult at best to find any comparable sales over the last three-six months where there are three units / premises under one title. I can find a few house and seperate granny flats BUT not what I have.

Absolutely brilliant Aaron! Exactly what I want to do to one of my properties - knock/move the old one down and build a duplex. What are the dimensions and size of your block? From the pics it looks very similar to mine.

And what was the cost all up if you don't mind me asking?

They look great, although I'm hoping to get 3br on mine depending on costing. Was yours a duplex design, or two houses stuck together?

Hi steve
The site is 15.5m x 67.2m.
Area is 1042 sq metres and cost $260K in October 2006.

House $260K
Duplex $300K
Total $560K

I have kept the front house and will rent all three. I like the 'buy and hold' theory. Front house is renting for $230 and each duplex unit will be $275 a piece. I like the proactive approach and have stuck a few notices up at the hospital and tafe.

Gross Yield 7.24%

Good luck with your project build Steve. I prefer single story builds (lowset for all you QLDer's). Very easy to knock up according to my builder. Hungry for the next opportunity. Well, until the bank says no.....

I was just wondering, what sort of profit margins can one expect in a duplex developement? I was looking for something similar in QLD but the figures just did not add up to profit!
Thanks in advance!

Hello OC


The margins are better when building 3 or more. Can be difficult to get the right block for the right price and get a 20% margin. I believe its much easier when increasing density - Quadplex, 5-packs 6-packs etc.... I did consider selling the duplex units and I got some wild quotes from $220K to $280K for each unit. I will keep all three and rent em. It really came down to the position of the site. So close to everything - public transport, shops, hospital, high school, tafe, easy access to highway ... the list goes on. Rents are going up, Suburb is gradually gentrifying.....

Cya
Aaron

 

[steveadl]

That's even better, I didn't realise you kept the existing house. Mine is 18x45, but keeping the existing house isn't an option for me.

I plan to do the same as you, sign contract with a builder to carry out project for me. Did you have any major hassles along the way? Your build time seems very good!

 

[aaarghhh]

I plan to do the same as you, sign contract with a builder to carry out project for me. Did you have any major hassles along the way? Your build time seems very good!

Hi Steve
No major hassles

I would've got the builder to quote for landscaping. I really HATE landscaping.

The best thing I did was visit site every week and have a sticky beak to all the tradies. Made some good future contacts. My PPOR needs bakthroom reno soon. I've struck up a good rapport with the tradies. Friendly wave etc.....asked how are there families, sports interests.

Got all their business cards. Good for future business and I told them I will advertise and use there services in the future.

It was also good to be onsite to check measurements were according to the plans. Asked lots of questions and got lots of different responses. I found the best thing was to talking to the builder about any issues that cropped up.

 

[steveadl]

OK so sounds like you still had a fair bit of involvement during the building process. Do you think it would have gone as smoothly had you not done this? Very interested in all this.

My thinking was if I went with one of the big reputable builders I wouldn't have to necessarily go to the site every few days to check on things?

 

[coolie21]

Hi, great thread thanks, love those pics. How hard/easy was it to get permission to stick a duplex on the back of the block? Were you 100% sure you could do this before you went to contract? Is each property now on its own title? Sorry if this is dumb but knowing what you can and can't do on a block before you bid for it seems to be harder than actually doing something on it once you've got it

 

[aaarghhh]

OK so sounds like you still had a fair bit of involvement during the building process. Do you think it would have gone as smoothly had you not done this? Very interested in all this.

My thinking was if I went with one of the big reputable builders I wouldn't have to necessarily go to the site every few days to check on things?

Hi Steve

Mrs aaarghhh says I'm a control freak at times. Everything prior to the build phase crossed my office desk/notebook at least once and has been either approved, tweaked, scrutinised or 'ripped up into little pieces and started over with.' I know everything would've gone smoothly if I remotely controlled builder. Only because I am a big believer in the prior planning prevents piss poor performance theory. I planned as much as I could in advance.

I got a bunch of builders, big and small to quote on the plans I provided. and I went to contract with a local builder. During the interview process I found out him and my father in law(retired painter) worked on several estates about 20-25 years ago when they were both younger and had more hair! *Gotcha Joe* I didn't get that good an impression when I priced through one of the bigger building mobs that pumps out 5000+ homes a year. At the end of the day picking a builder is still a gamble, just like getting good tenants.

Hi, great thread thanks, love those pics. How hard/easy was it to get permission to stick a duplex on the back of the block? Were you 100% sure you could do this before you went to contract? Is each property now on its own title? Sorry if this is dumb but knowing what you can and can't do on a block before you bid for it seems to be harder than actually doing something on it once you've got it

Hello Coolie
I love the pics as well. The original owner of the site had tried twice before to get a bunch of townhouses approved on the site and council knocked back both of his DA's. I phoned a senior planner in council a few days before the contract went unconditional and got the impression that a duplex would be approved and townhouses wouldn't be approved. So with only the verbal representation from a senior town planner, I went unconditional knowing I had a very good opportunity to add value to an otherwise bland quarter acre block.

The site is only under one title. Three premises under one title. I have it ready for strata/community title - each premises has seperate power and water meters, parking spaces etc.... I don't want the added holding costs of a community title block. Just have to pay a surveyor, council fees and title office fees. Most of the ground work is already in place.

A very good tip is to know the appropriate codes and study them. I know the Dual Occupancy and Medium Density Reisidential Dwelling codes inside out. I now look at any block and in a few minutes I know if it will be a winner or a loser. Does it have the frontage, miniumum area, can I get stormwater to an approved outlet, car parking requirements etc....

Aaron

 

[steveadl]

What added holding costs are there for you with keeping it a community title development Aaron?