Cost of Development ?

From: Paddy in the Paddies

I've got a 1/4 acre in Essendon and want to start down the road of developing it. My questions are very basic (sorry) and at this point I need ballpark figures only.

What does it cost to demolish a 20sq double brick house ?
How long do plans often take to be approved ?
What would 3 x 16sq T/H cost to build ?

I assume there's a lot of time involved, so I want to get started planing now. I wish to keep them, so I would like quality, to give good vacancy and rent figures.
Where should I be starting ?
Keeping in mind that I'll be doing all this from abroad ?

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Reply: 1
From: Cad .

Hay there Patosan,
My suggestion to you is to first contact a building Co in that area.
They are in the know & will easily be able to help answer all your questions.

Regards Cad
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Reply: 2
From: Cad .

By the way,
Check with your local shire first, to make sure you can do what you're planning.
Bye Cad
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Reply: 2.1
From: Mark Laszczuk

I suggest you email Michael Yardney. He should be able to help you with some of your questions, he might even be able to help you with the development. He can be contacted at:

'no hat, some cattle'
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Reply: 2.1.1
From: Michael Yardney

I have some answers for you and thanks for the plug Mark.
I can answer some of the questions as I know the area well as we are just commencing construction of a 6 x 2 storey townhouse development in Butler St Essendon next week.
It would take up to 12 months to gain development approval for a new development. Since the introduction of ResCode, the new State government planning scheme last year the process of obtaining planning permits has doubled in length of time necessary and also in cost considering the amount of information the council requires.
The City of Moonee Valley, your local council, has taken the position that they are currently refusing more permits than they are approving.
All this means is that it is harder to get permits, but once you do your property would be worth considerably more.
To answer your specific questions:-
1.Cost to demolish - depends upon how much salvagable material there is but say $5-6,000.
2. Time to get permits - 9 to 12 months.
3. Cost of units - I'm not sure that you could get 3 units on that size block - esp not the size you are suggesting. Sure there may be some down the street, but the planning laws have changed last year.
Also its not just the cost of the units that you should concern yourself about. There are all the fees and contributions that most beginning developers don't even know about.PLus all the consultants costs. Further you need the knowledge of the various authorities you need to coordinate.
Paddi please call me on 9532 8889 or email me with more details and I may be able to give you some more meaningful numbers.
Michael Yardney
Metropole Properties
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