Highgate WA: let's build a baby apartment block thread
- Thread starter westminster
- Start date
Wooohooo APPROVED!!!!
Excellent, early Xmas present
If you haven't guessed where it is, this is my new project
http://www.realestate.com.au/property-house-wa-highgate-111601499
Now we move onto the construction loan. Aaron Sice has been appointed designer! (once he buys me lunch )
http://www.realestate.com.au/property-house-wa-highgate-111601499
Now we move onto the construction loan. Aaron Sice has been appointed designer! (once he buys me lunch
)
steak dinnerz r us.
Loving this thread, such suspense!
Update on figures.
I now have a base design which we will continue to work on after New Years. It will have 3 apartments with 2 bedrooms, 2 bathrooms. And it is sooo beautiful.
First official rental valuation done (off plan)
2 bedroom + 2 bathroom $650-750 per week
If I have worked it out correctly that is 8.5% yield working on $650 pw. If I can get $750 then it would be close to 10%. Loan repayment is $6000 (working at 6%) and gross income is $8500 (at $650pw). It should still be CF+ nett.
In this case I would not sell any of these units and just access equity. Its a win/win.
Update on Sales Valuation
First sales valuation has come through (I'm having 2 done) just to get some quasi unbiased assessment of the development. I take all REA figures with a grain of salt and I don't require these for the bank but it's part of my due diligence process.
From my original post
Hold onto your hats .......................
70sqm 2 bed, 2 bath apartment low $500,000s
90sqm 2 bed, 2 bath apartment mid $500,000s
90sqm 3 bed, 2 bath apartment low-mid $600,000s
I find this quote from the REA *very* interesting. The second 2 apartments are exactly the same size, just different tweaking to fit in a 3rd bedroom but it's worth significantly more. I'm surprised but not surprised - does that make sense? Logically I know an extra bedroom is worth more but I was expecting that it would come at a price of having to provide extra square meterage (ie be larger).
Aaron might be rechained to the design desk to make sure we can squeeze in that 3rd bedroom.
First sales valuation has come through (I'm having 2 done) just to get some quasi unbiased assessment of the development. I take all REA figures with a grain of salt and I don't require these for the bank but it's part of my due diligence process.
From my original post
Hold onto your hats .......................
70sqm 2 bed, 2 bath apartment low $500,000s
90sqm 2 bed, 2 bath apartment mid $500,000s
90sqm 3 bed, 2 bath apartment low-mid $600,000s
I find this quote from the REA *very* interesting. The second 2 apartments are exactly the same size, just different tweaking to fit in a 3rd bedroom but it's worth significantly more. I'm surprised but not surprised - does that make sense? Logically I know an extra bedroom is worth more but I was expecting that it would come at a price of having to provide extra square meterage (ie be larger).
Aaron might be rechained to the design desk to make sure we can squeeze in that 3rd bedroom.
Those figures sounds like around what I would have guessed. Prospective buyers tend to look at bed/bath/carspace figures first and then square meterage a lot later.
In fact, I would say a fair few don't even ask about the size of the apartment until AFTER they view it - which means a well designed layout might hide the fact that it is actually smaller than they expected.
Hi Westminster,
Apologies if I have this wrong.
The buy price was approx 500k and the build cost is 1.2m, so total is 1.7. The sum of your estimated sale prices for your apartments is about 1.7-1.8m based on:
70sqm 2 bed, 2 bath apartment low $500,000s
90sqm 2 bed, 2 bath apartment mid $500,000s
90sqm 3 bed, 2 bath apartment low-mid $600,000s
Would this be a risky investment given that you don't have 20% margin? Or is your 'estimated cost' inclusive of purchase price?
Again, apologies if I have it wrong
Apologies if I have this wrong.
The buy price was approx 500k and the build cost is 1.2m, so total is 1.7. The sum of your estimated sale prices for your apartments is about 1.7-1.8m based on:
70sqm 2 bed, 2 bath apartment low $500,000s
90sqm 2 bed, 2 bath apartment mid $500,000s
90sqm 3 bed, 2 bath apartment low-mid $600,000s
Would this be a risky investment given that you don't have 20% margin? Or is your 'estimated cost' inclusive of purchase price?
Again, apologies if I have it wrong
Hi Westminster,
Apologies if I have this wrong.
The buy price was approx 500k and the build cost is 1.2m, so total is 1.7. The sum of your estimated sale prices for your apartments is about 1.7-1.8m based on:
70sqm 2 bed, 2 bath apartment low $500,000s
90sqm 2 bed, 2 bath apartment mid $500,000s
90sqm 3 bed, 2 bath apartment low-mid $600,000s
Would this be a risky investment given that you don't have 20% margin? Or is your 'estimated cost' inclusive of purchase price?
Again, apologies if I have it wrong
Yes wrong, but don't worry
Total land + construction will be around $1.2m. I won't have build price for another week or 2 but I'm pretty sure it's around that.Margin should be around 40%
Yes wrong, but don't worry
Margin should be around 40%
Thanks ahha yes your 1.2 was including the 0.5. Makes sense, and a very good investment indeed
Should have no problem getting that rent, especially with all these 457s coming to Perth!
Well done Westminster, ... I love hearing of people willing to push the boundaries. I'm not sure I have the courage or the vision to do what you are doing just yet, but one day who knows. I need to network more with developers to gain further knowledge from those that know. I've just got to find them ...
All the very best of luck with the project and thank you for sharing so that we can all be inspired.
Mystery
All the very best of luck with the project and thank you for sharing so that we can all be inspired.
Mystery
Great day
Went and visited my builder this morning and talked construction methods, pricing expectations, options, his preferences and next steps.
Then went and saw Aaron and threw a spanner in his design works and asked him to change the design around an idea I wanted to try for parking. He didn't throttle me The parking solution really takes up less space - so much so we could throw budget out the window and add a pool if I want to. Potentially gained a 4m x 9 or so metre area - could make a communal garden, pool area, veggie patch etc.
Went and visited my builder this morning and talked construction methods, pricing expectations, options, his preferences and next steps.
Then went and saw Aaron and threw a spanner in his design works and asked him to change the design around an idea I wanted to try for parking. He didn't throttle me
The parking solution really takes up less space - so much so we could throw budget out the window and add a pool if I want to. Potentially gained a 4m x 9 or so metre area - could make a communal garden, pool area, veggie patch etc.
