Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
The vals are in.
They came in at exactly $825,000 each. I dare say that the valuer is lazy and the bank said what value was 'needed' for the loan approval - and guess what the value came in at? I think if push came to shove I could get a higher value, but its fine for now.
So the final numbers
Purchase $711,500
Purchase costs $50,000 (includes stamps and BA)
Build costs $1,300,000
Other costs $130,000 (design, subdivision etc)
Holding & Other costs $35,000
Interest $220,000
Total costs $2,446,500
End value ($825k x 3) $2,475,000
Grand total profit $28,500 (1.16%)
The "other costs" include project management charge, as well as re-applying for building licenses etc which is why it is so high.
I settled on the block on the 29th August 2008, construction started in about April 2013. Total build time was a touch over 12months (after loosing about 12weeks to rain).
So with selling one, and keeping 2 I will at least get a good chunk of the equity back. Plus given my gearing they will be about neutral CF.
Its taken 6 years to come out with a total profit of under $30k. I could have put the money in the bank and earned more... however, wouldn't have learned anything and in many aspect I think the learning is invaluable. Its been a journey, not always a fun one, but Ive learnt a lot and come out the other side without going broke. So thats got to count for something right?
Its all onwards and upwards from here
Ill keep the thread open until we have them sold/rented. But otherwise, thats about all folks.
Blacky
My REA is confident of hitting $850k. They will hit the market at that level.
I have done my numbers at this stage on $825k.
Rents around $750/wk.
They were advertised already, and generated a lot of enquiry. REA must have shown about 10potential buyers through while it was still in construction. Now they are finished, will be interesting to see, as the finishes make a lot of difference (esspecially THOSE floors ).
Im keen to see the vals later today.
Its a bitter sweet victory. Myf beat me by about 2 weeks . So close, yet so far.
I look forward to buying her lunch on the 26th.
Though I do take a 'technical' victory in that my titles are already issued...
Blacky
Hi VaSSagO
Im planning on paying an inspector/QS once the second floor pad has been poured, and maybe again at 'roof on' stage.
My brother has a few contacts who can assist.
Thanks for the advise.
Blacky
Blacky, are you serious about 1% return?
LW
I think this was Blacky first project, his going to kill it with the second project.
We are all learning along the way
Hey Blacky,
Are you building this under a trust or your personal name?
I have re-read your initial post, and it appears that you had some difficulties in obtaining finances (something about where you are working)
LW - most certainly am.
Given the way things went I think its a pretty damn good result. Im happy Im in the '+ve' side of the equation. It was very close to being a big '-ve' loss making venture. It very nearly sunk me financially (ie - it nearly sent me broke - very nearly).
Can I ask - Why do you ask?
Blacky
Forgive me because its been a while since reading the start of the thread. But did you consider just selling the land after you Subdivided it and couldn't get finance for the construction instead of having it sit dormant for so long?
Cheers for all the insights by the way, the end product is something to be proud of!
Mate, I am in the early stages of feasibility of my own site.
So trying to learn as much as possible.
Fair duce to you.
Start a thread and let the great minds of SS pull it apart and put it back together again.
Good luck
Blacky