looking to purchase a devolpment site, to put a few townhouses on, what should the average cost of each site be once subdivided, eg a $400,000 site that can be have 5 townhouses on it works out to be $80,000 per townhouse, as that reasonable???, considering the townhouses the end value of each townhouse to be $380,000, any help or advise would be appreciated.
development cost per site???
- Thread starter charger49
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No need to be "rough" at all, we can be quite specific with numbers.
Allow an additional 5-7% for legal costs (12% if commercial) and have a buffer of 10-15% for contingencies.
80k sounds tooooooo cheap. How big are they, where, what finish.
Each site will vary from location, to council, to amenities.
You need to do a feasibility on each one to determine if the numbers stack up - this can be very roughly block divided by 5 plus construction cost. If that figure if less than the sales value of the area then you do more due diligence and add in holding costs, permits, strataing, earthworks, lawyers etc etc
If there is still more than 20% profit then it might be AOK.
Mackay is more expensive to build in than Brisbane, so don't take the $1470/sqm rate that RPI has advised.
If in the centrally located high density zones, they are almost all located in the Q100 flood zones. While council will allow you to build there, you need to build up the block to be able to stay above the flood levels.
The council can advise based on the location, how much you would need to build up to stay dry. BTW, this all costs lots of money, before you start the construction.
A builder I have used that does work in both locations advises that the cost in Mackay works out at around 13% more than in Brisbane. This allows for building to cyclone rating and higher costs there. Then add the additional costs to get the build above the flood zone.
If in the centrally located high density zones, they are almost all located in the Q100 flood zones. While council will allow you to build there, you need to build up the block to be able to stay above the flood levels.
The council can advise based on the location, how much you would need to build up to stay dry. BTW, this all costs lots of money, before you start the construction.
A builder I have used that does work in both locations advises that the cost in Mackay works out at around 13% more than in Brisbane. This allows for building to cyclone rating and higher costs there. Then add the additional costs to get the build above the flood zone.
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