duplex Development in sydney

[kvellimalai]

Hi All,
Happy new year and wish everyone a success on the property investing.
I am currently having couple of investment properties (all in western sydney) and one of them is with a land size of around 1400 SQM.
My intention is to build a 4 duplex's on the site.
I never did a development myself and would liekt o get some expert advice on the following:
1. how the finances are structured? will we get the loan with normal standard variable rate?
2. Any recommendation for a builder who is reliable and cheap in Sydney area.
what i found is if i use the standard builder's like Masterton, Clarendon Allcastle extra, they charge a fortune and our return will be lost. I went and saw the display they have and came to the conclusion.
3. Does the developers have their own builder's or engage the services.


Your advice will be highly appreciated. I am now planning to enter in a different venture (development) and started reading about this.

Regards
Velli

 

[Aaron_C]

1. how the finances are structured? will we get the loan with normal standard variable rate?
2. Any recommendation for a builder who is reliable and cheap in Sydney area.
what i found is if i use the standard builder's like Masterton, Clarendon Allcastle extra, they charge a fortune and our return will be lost. I went and saw the display they have and came to the conclusion.
3. Does the developers have their own builder's or engage the services.

1. Finance will be either through a residential or commercial construction finance. Most likely commercial.
2. Sorry can't help I'm in good ol' Victoria
3. Developers like you will have to engage a builder to do most of the work. You can't do it yourself because then you will be an 'owner builder' - and banks hate that.

 

[Rolf Latham]

Hi All,
Happy new year and wish everyone a success on the property investing.
I am currently having couple of investment properties (all in western sydney) and one of them is with a land size of around 1400 SQM.
My intention is to build a 4 duplex's on the site.
I never did a development myself and would liekt o get some expert advice on the following:
1. how the finances are structured? will we get the loan with normal standard variable rate?
2. Any recommendation for a builder who is reliable and cheap in Sydney area.
what i found is if i use the standard builder's like Masterton, Clarendon Allcastle extra, they charge a fortune and our return will be lost. I went and saw the display they have and came to the conclusion.
3. Does the developers have their own builder's or engage the services.


Your advice will be highly appreciated. I am now planning to enter in a different venture (development) and started reading about this.

Regards
Velli

Hi Velli


8 separate titled duplexes on 1400 sq m ?

Mid 7s rate if you are doing well on the rate for a comm dev deal .............odd question to ask though if this is a profitable development ?

ta

rolf

 

[kvellimalai]

Thanks Aaron and Rolf

Hi Aaron,
Thanks for the details. I can't do it myself and hence trying to find a builder (not the commercial ones who will eat away the profit).

Rolf
it is not 8 duplexes I am planning. I am planning 2x2=4 Duplex and my simple calculation says there will be profit if the construction cost is around 240K for each of the duplex (not both).
I am currently looking for some builder's to get the exact figure...

Thanks
Velli

 

[Ace in the Hole]

2. Any recommendation for a builder who is reliable and cheap in Sydney area.
what i found is if i use the standard builder's like Masterton, Clarendon Allcastle extra, they charge a fortune and our return will be lost. I went and saw the display they have and came to the conclusion.

I can't imagine you will get a duplex built cheaper than a project builder like those you have mentioned.
When you say 240k per duplex, you mean 240k per unit right (2 x 2 duplexes) ?

 

[kvellimalai]

I can't imagine you will get a duplex built cheaper than a project builder like those you have mentioned.
When you say 240k per duplex, you mean 240k per unit right (2 x 2 duplexes) ?

Hi
Yes you are right. It is per unit cost.

 

[chilliblue]

You could go into joint partnership with a builder reducing your reliance on funding.

 

[roba72]

Hi

We are a building company in sydney im happy to give you a quote or discuss your development with you more. My company is Buildpoint(nsw)pty ltd call me on 0416155202

We are building 4 duplexes that is a duplex at front and a duplex at rear now at Girraween


Regards

Robert
www.buildpointnsw.com.au

 

[mattnz]

$240k per unit sounds very high. Surely in Sydney you should be able to build single storey at max $1200 per sqm x 150 sqm per 3 bed unit = $180k for a turnkey solution.

 

[mattnz]

While Dixon Homes don't operate in Sydney, they can do 150 sqm units for around $150k each http://202.131.91.250//NewSearch/designs/details.aspx?LID=2VG0RB6U&DID=DC7406

In Melbourne I have built for $1000/sqm turnkey, surely in Sydney you could do it for at most $1200/sqm

 

[maza]

$240k per unit sounds very high. Surely in Sydney you should be able to build single storey at max $1200 per sqm x 150 sqm per 3 bed unit = $180k for a turnkey solution.

I agree, 240k per unit is alot.

Kvell, are you doing brick vaneer or double brick?

Any concrete on second story or floor boards?

Face brick or render?

What kind of footing/slab do you think you will need? Strip footing/raft slab etc