development fesability frankston check?

[TMNT]

can anyone please give me indication of whether im on the right track

its a corne 900sqm block, with an existing shabby house
aim is to tear down and build three

Purchase
$600k
$10k removal
$15k service and utlities connection
$10k for coincil subdvi plus plans
$525k+gst construction for 3 townhoues
$15k council contribution (5% of land value at time of subdiv, land at $300k)
$58k 5% interest for 1 year

total 1233k

sales
$318k+gst x3 = 954k
net LOSS of 279k

or if held onto all three and sold over 5 years so thay gst is not incorpotaed
net loss of $180k odd

is this right eveyone?

 

[mflying]

Why do it for loss?

 

[MTR]

How do the figures stack up when holding the front property and as its a corner, build only one???

MTR

 

[mflying]

May only get one dwelling if existing dwelling is retained.


Can you not stack 4 on it?

 

[Snoopy]

can anyone please give me indication of whether im on the right track

its a corne 900sqm block, with an existing shabby house
aim is to tear down and build three

Purchase
$600k
$10k removal
$15k service and utlities connection
$10k for coincil subdvi plus plans
$525k+gst construction for 3 townhoues
$15k council contribution (5% of land value at time of subdiv, land at $300k)
$58k 5% interest for 1 year

total 1233k

sales
$318k+gst x3 = 954k
net LOSS of 279k

or if held onto all three and sold over 5 years so thay gst is not incorpotaed
net loss of $180k odd

is this right eveyone?

Build costs look low. Margin scheme may save you $60k. Why would you do it for a loss

 

[TMNT]

thansk everyone, so the figures look right?

I thought construction looked a bit low too........

its not a site I am looking at but a friend with even less idea has asked me to do a fesability analysis

and yes, according to my figures, no matter how you do it, unless you can retain the house or build 4, looks like a terrible site in my opinion

 

[Scott No Mates]

Are your sales figures right? What can you buy for that amount?

What rate/m2 are you using for construction?

What's it going to return as a rental as is?

What is permitted under the zoning? What is the maximum development potential? That will determine what the site is worth & what you can do with it.

 

[TMNT]

Are your sales figures right? What can you buy for that amount?

What rate/m2 are you using for construction?

What's it going to return as a rental as is?

What is permitted under the zoning? What is the maximum development potential? That will determine what the site is worth & what you can do with it.

im just going by a conservative best guess,

this one obviously not in as nice area but

http://www.realestate.com.au/property-unit-vic-frankston-116891459

is $319k, so I priced my ones at $318k+gst (ie $350k)

its zoned r1, with no sigifnicant overlays, being a corner block with the house pretty in the middle, I didnt think retaining the existing one was possible, so it would be a 3 site tear down, I guess 4 might be possible but im no architect

here is the property btw, Its sold and I know how much for, but im just investigating it for personal education

http://www.realestate.com.au/property-house-vic-frankston-119039647

if it was 3x300m2, then its not going to be super small or huge, so I went the figure of $1300/sqm, and went 140sqm which is $180kper town house for arguments sake

rental im not sure, maybe 3x $350 per week, which is $1050 per week for a $1233k site, so the yield isnt super either at 4.4%

just seeing how it all might work

 

[Shahin_Afarin]

im just going by a conservative best guess,

this one obviously not in as nice area but

http://www.realestate.com.au/property-unit-vic-frankston-116891459

is $319k, so I priced my ones at $318k+gst (ie $350k)

its zoned r1, with no sigifnicant overlays, being a corner block with the house pretty in the middle, I didnt think retaining the existing one was possible, so it would be a 3 site tear down, I guess 4 might be possible but im no architect

here is the property btw, Its sold and I know how much for, but im just investigating it for personal education

http://www.realestate.com.au/property-house-vic-frankston-119039647

if it was 3x300m2, then its not going to be super small or huge, so I went the figure of $1300/sqm, and went 140sqm which is $180kper town house for arguments sake

rental im not sure, maybe 3x $350 per week, which is $1050 per week for a $1233k site, so the yield isnt super either at 4.4%

just seeing how it all might work

I work off $1600 - $1800 per sqm for a standard turnkey build without any basements or the like.

Would love to know how this translates for each state?

 

[Cassandra]

Someone I know paid around $600,000 for a similarly sized block in the non-beachside part of Seaford - right next door to Frankston. Although it is a 4 unit site, she plans to use it as a medical practice.

It would be interesting to see what this Foot St site sold for. Given its proximity to Frankston Hospital, it could be more valuable than we think.

 

[MTR]

I work off $1600 - $1800 per sqm for a standard turnkey build without any basements or the like.

Would love to know how this translates for each state?

Hi Shahin
Depending on the specification but single storey villa, high spec last project around $1200 for Perth, but we build in double brick. I also think build prices in Perth have gone up recently as we have had a shortage of trades.

MTR

 

[Shahin_Afarin]

Hi Shahin
Depending on the specification but single storey villa, high spec last project around $1200 for Perth, but we build in double brick. I also think build prices in Perth have gone up recently as we have had a shortage of trades.

MTR

Wow that incredibly cheap even if it was for brick veneer. No wonder you have a shortage of trades.

 

[MTR]

Wow that incredibly cheap even if it was for brick veneer. No wonder you have a shortage of trades.

Shahin, we have lots of choices in terms of good builders in Perth.

I think that may not be the case in Sydney am I right??, seriously I had a major problem just trying to get someone to give me a quote for my Doonside g/flat.

MTR

 

[Shahin_Afarin]

Theres a shortage of everything in sydney, builders, development sites, childcare centre, priests, dog handlers.

 

[Cassandra]

Thanks TMNT for sharing.

Here is the final price for 2 Foot St. Sold for a whopping 50% above asking reserve price.

http://house.ksou.cn/p.php?q=Frankston&sta=vic&id=645416


Given its proximity to Frankston Hospital, I bet the buyer works in the medical profession. Unlikely that a seasoned builder or developer would pay so much for a pretty ordinary (albeit well-located) site.


http://www.heraldsun.com.au/leader/...-department-digs/story-fngnvli9-1227215667197

 

[TMNT]

Thanks TMNT for sharing.

Here is the final price for 2 Foot St. Sold for a whopping 50% above asking reserve price.

http://house.ksou.cn/p.php?q=Frankston&sta=vic&id=645416


Given its proximity to Frankston Hospital, I bet the buyer works in the medical profession. Unlikely that a seasoned builder or developer would pay so much for a pretty ordinary (albeit well-located) site.


http://www.heraldsun.com.au/leader/...-department-digs/story-fngnvli9-1227215667197

I wonder how much a site like this was worth still in a good area, similar dimensions, minus hte medical centre aspect.....

maybe $550k???