Looking To Develop



From: Fernando Loprete

I am currently researching the idea of purchasing some land, (with or without an existing dwelling) to construct 3 or possibly 4 units/townhouse's. I would have to go through a builder to do this as the bank possibly wont put up any funds if i don't use a builder. I my questions are, how much can i current expect to pay per SQ meter? What sort of time frame am I looking for the construction period? What are peoples tip's or regrets. If there are any builders out there i would gladly like to speak you. I am situated in Melbourne and you can contact me at ferni01@optushome.com.au. Thanks in advance
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Reply: 1
From: Gail H

Hi everyone,

Yes, I endorse that question. I'm thinking of subdividing and putting 1 or 2 townhouses in my backyard. Leaving aside the issues re council permission, I would also be interested in answers to the questions just asked. If anyone has any experiences in developing dual occupancies, I would love to hear it. Are there any good books on it?

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Reply: 2
From: Mike .

Hi Fernando,

At this stage it is difficult to predict a set cost per square metre because there are a few variables involved. For a start, the total cost of the project will include the cost of the land which is unknown.

Other obvious variables are dimensions of the building, type of construction and location. How I would tackle this problem is to locate a similar new development in the location you have chosen and deduct 20-25% off the retail price which is the developer's margin. Since you are the developer, that is your saving.

From that wholesale price, deduct the cost of land and you should have a rough estimate of the building component. Labour costs will be 30-40% of that.

Regards, Mike
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Reply: 2.1
From: Michael Yardney

Due to the many forum members who would like to develop property and have similar questions late last year I offered to run a FREE little evening chat on the basics of how to become a property developer and we got a great response
I'm happy to do this again if there is enough interest.
For those who don't know me, I have been developing property part time for many years and full time now for 6 years. We are currently undertaking developments throughout Melbourne and this year will compete over 45 units in 10 different projects. By the way I have traded successfully through 3 property cycles and started Metropole in 1977.
So again I am prepared to offer a FREE workshop at our offices one evening but because of the location it will be limited to 15 or so people. If you are interested please email me myardney@metropole.com.au or give me a call on 9532 8889
Michael Yardney
Metropole Properties
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Reply: 2.1.1
From: F P

Current rates for a single storey would be around $800-900 per square meter. Two and three storey, anything up to around $11oo per square. All depends on the finishes you want though...could be + or - 5-10%

Good luck.
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