Dear SS brains trust,
I'm (wishfully) thinking about developing in Sydney's inner west - doing something like a knockdown-rebuild and putting a duplex on the block. One half of the duplex would be our PPOR and the other half I'd keep/sell depending on the situation.
Main problem though is that the sites are going for $$$ right now, so I'd probably have to get started someplace cheaper where I won't lose my shirt if things go pearshaped. Anyway here are a couple of links to what sites are costing in the inner-west right now:
Ashfield $1.268m 569sqm: http://www.realestate.com.au/property-house-nsw-ashfield-116761931
Strathfield $2.035m 835sqm: http://www.realestate.com.au/property-house-nsw-strathfield-116617023
Could I please get a rough idea of how much funds would be needed in order to do something on a $1.5m site? Have I missed anything?
cost of site: $1.5m
stamp duty: $68k
construction cost for 2 storey duplex $750k
misc permits, council stuff $40k
demo of existing place $25k
holding costs on land loan 12 mths $90k
holding costs on construction loan 12mth $45k
subdivision $10k
landscaping $20k
contingency eg. stormwater & other issues $50k
TOTAL = $2.598m
Not very much profit in it but like the master card ads... being able to design your own PPOR = priceless
What I would also like to know is, how much initial funds would one need to even contemplate such a venture??
20% deposit on the property: $300k
stamp duty: $68k
enough funds for the initial council stuff: $50k
contingency: $50k
TOTAL = $468k
I'm really interested in knowing the initial amount of funds needed vs how much you can borrow from the bank. As I'm not that familiar with construction loans - how do they determine your max borrowings for a construction loan?
We also don't have the $468k yet, so trying to calculate (if we had $300k savings, say) the size of the development that we could possibly undertake.
Definitely looks like we'll have to start small before launching into a big endeavour like the one above!
I'm (wishfully) thinking about developing in Sydney's inner west - doing something like a knockdown-rebuild and putting a duplex on the block. One half of the duplex would be our PPOR and the other half I'd keep/sell depending on the situation.
Main problem though is that the sites are going for $$$ right now, so I'd probably have to get started someplace cheaper where I won't lose my shirt if things go pearshaped. Anyway here are a couple of links to what sites are costing in the inner-west right now:
Ashfield $1.268m 569sqm: http://www.realestate.com.au/property-house-nsw-ashfield-116761931
Strathfield $2.035m 835sqm: http://www.realestate.com.au/property-house-nsw-strathfield-116617023
Could I please get a rough idea of how much funds would be needed in order to do something on a $1.5m site? Have I missed anything?
cost of site: $1.5m
stamp duty: $68k
construction cost for 2 storey duplex $750k
misc permits, council stuff $40k
demo of existing place $25k
holding costs on land loan 12 mths $90k
holding costs on construction loan 12mth $45k
subdivision $10k
landscaping $20k
contingency eg. stormwater & other issues $50k
TOTAL = $2.598m
Not very much profit in it but like the master card ads... being able to design your own PPOR = priceless
What I would also like to know is, how much initial funds would one need to even contemplate such a venture??
20% deposit on the property: $300k
stamp duty: $68k
enough funds for the initial council stuff: $50k
contingency: $50k
TOTAL = $468k
I'm really interested in knowing the initial amount of funds needed vs how much you can borrow from the bank. As I'm not that familiar with construction loans - how do they determine your max borrowings for a construction loan?
We also don't have the $468k yet, so trying to calculate (if we had $300k savings, say) the size of the development that we could possibly undertake.
Definitely looks like we'll have to start small before launching into a big endeavour like the one above!
