Seeking advice from the forum so I can learn and continue on my investment journey.
After a couple months of reading the forums, going through threads by MichaelW (wow, this was awesome!), Blacky, Westminster and a few others, am thinking of doing a small 4 townhouse development in the 10K Brisbane radius, zoned in on Kedron in particular but am stuck with next steps
Firstly on doing a feasibility, these are the numbers I've come up with based on current prices on re.com. (with my limited understanding)
Have also read up a few DA approvals on BCC's website to get an idea of the DA process.
This will purely be for buy and hold.
Land cost: 600K (~600 - 650sqm LMR site)
Stamp duty and legal: 23K
Construction: 952K (170sqm x 1400 per sqm x 4 units) - is this sufficient?
Consulting costs: 60K (including town planner, surveyor, architect, engineers & certifier)
DA cost: 10K
Infrastructure charges: 81K (27K x 3. Is this correct or do I need to make it 27K x 4 since it's 4 lots in the end?)
Civil Works: 20K (assuming sewer and water access is fairly accessible)
12 months interest: 81K
Total Development Costs: $2056K
End Value: $2160K ($530K per unit)
Margin: 1% http://somersoft.com/forums/images/smilies/frown.gif
Questions:
1. Assuming serviceability is sufficient, is it normal to get 75% LVR on TDC? This required equity of 514K to complete development.
2. What are my gaps with the feasibility? (minus the obvious crappy margins!)
3. Upon identifying the site, would this be the correct next steps for initial DD:
a. Send to Town Planner
b. Site Surveyor
I understand the Town Planner part but can someone please elaborate further re site survey and what we need to look out for?
Fire away, happy to take criticism and feedback.
After a couple months of reading the forums, going through threads by MichaelW (wow, this was awesome!), Blacky, Westminster and a few others, am thinking of doing a small 4 townhouse development in the 10K Brisbane radius, zoned in on Kedron in particular but am stuck with next steps
Firstly on doing a feasibility, these are the numbers I've come up with based on current prices on re.com. (with my limited understanding)
Have also read up a few DA approvals on BCC's website to get an idea of the DA process.
This will purely be for buy and hold.
Land cost: 600K (~600 - 650sqm LMR site)
Stamp duty and legal: 23K
Construction: 952K (170sqm x 1400 per sqm x 4 units) - is this sufficient?
Consulting costs: 60K (including town planner, surveyor, architect, engineers & certifier)
DA cost: 10K
Infrastructure charges: 81K (27K x 3. Is this correct or do I need to make it 27K x 4 since it's 4 lots in the end?)
Civil Works: 20K (assuming sewer and water access is fairly accessible)
12 months interest: 81K
Total Development Costs: $2056K
End Value: $2160K ($530K per unit)
Margin: 1% http://somersoft.com/forums/images/smilies/frown.gif
Questions:
1. Assuming serviceability is sufficient, is it normal to get 75% LVR on TDC? This required equity of 514K to complete development.
2. What are my gaps with the feasibility? (minus the obvious crappy margins!)
3. Upon identifying the site, would this be the correct next steps for initial DD:
a. Send to Town Planner
b. Site Surveyor
I understand the Town Planner part but can someone please elaborate further re site survey and what we need to look out for?
Fire away, happy to take criticism and feedback.