My Duplex Development near "parramatta"

Good luck LeoT. Please keep this thread updated frequently.

When did you buy this property? 624K doesn't get you far these days. Especially if you are sitting on a parcel where each unit can go for more than 800K!

I did similar sums for a 720 sqm house in Pendle Hill 3 years ago. I thought any profit was basically eaten up builder's margin.

Thanks for sharing this project.
 
devank;1221941]Good luck LeoT. Please keep this thread updated frequently.

When did you buy this property? 624K doesn't get you far these days. Especially if you are sitting on a parcel where each unit can go for more than 800K!

Hi mate, I bought it last year and was deciding what to do with it. At the time I bought it, I did my research and it was at least worth about 700k because large block for the area (if I can remember correctly close to 800sqm, that's big for 15km from the Sydney CBD). I so approached the home owner (cold call) as after some tough negotiating, that's the price we were both happy on. Well she was happy. I was pissin me pants :D btw I managed to negotiate a 4 month settlement!


With regards to each unit price..god has been smiling at me because now its close to 1mil mark for each side. And I only calculated it on about 850-870k ..



.
I did similar sums for a 720 sqm house in Pendle Hill 3 years ago. I thought any profit was basically eaten up builder's margin
Pendle hill is 12km away from this development, and even further from the CBD so I don't know how the numbers there stack up. I knew the number I needed to get this property at in order to make it worth while for a duplex development. I also knew that Sydney was well into a great growth cycle and I felt it has a lot more room. What I didn't know is just HOW well Sydney will do and in particular this suburb's own growth cycle has experienced amazing growth. All luck :D

Although Les Brown says if you do something over and over enough, your bound to hit some 'lucky' times!

What TDC did you work out for duplex in Pendl Hill and what end sale value did you come up with?

Cheers mate
 
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Thanks for being so open Leo, I also have a 4br brick house on 823sqm near Parramatta, that i would love to building a duplex on in a year or two.

Great to see your numbers so i can work out if a duplex stacks up for me.

My only issue is the house is in very good condition, almost to good to knock over.

Thanks


My aim would be to build a duplex, sell one and be almost mortgage free living in the other.
 
[QOTE=jeffb5ltr;1221980]Thanks for being so open Leo, I also have a 4br brick house on 823sqm near Parramatta, that i would love to building a duplex on in a year or two.

Awesome!! When did you get it? At what cost? (if you don't mind me asking)

Is the land sloping towards the road or away? Are there duplexes in your immediate area/street?

My only issue is the house is in very good condition, almost to good to knock over.My aim would be to build a duplex, sell one and be almost mortgage free living in the other.



Then don't let a good condition house stop you from achieving your goals. Your goal isn't to live in a "good condition house". Its to be mortgage free. ;)
 
[QUOE=bumblegoodie;1221890]thanks LeoT.

I have so much to learn before i ever get to where you are

I started knowing absolutely nothing about property investment. today I have enough knowledge to survive and make some profit. We all have to start somewhere. the important thing is to start! That's the hardest part, and most ppl don't ever start.


property development is very asirping and maybe i will be a builder one day!!!
I think the builder course will generally takes two years + years of experience before getting a license.....


Being a developer or a builder are two different things. Unless your a builder/developer. In any event, you certainly don't have to be a builder to understand or undertake property development. Much better allocation of time/energy/resources to just out source the builder then try to do it yourself.
 
LeoT said:
...that's big for 15km from the Sydney CBD).
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Parramatta is about 25 km from the Sydney CBD.

LeoT said:
I so approached the home owner (cold call)
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Nice work there! It is not something everyone is comfortable doing.

LeoT said:
Pendle hill is 12km away from this development,
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What? It is about 5 kms from Parramatta. I used to cycle there. 5+5 Kms was my limit :mad:

LeoT said:
What TDC did you work out for duplex in Pendl Hill and what end sale value did you come up with?
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What is TDC?
From memory, I think I was working on 550K per unit at that stage. I used 500K as the building cost at that time.
After doing a bit of simple projections on equity and cash flow I ended up building a Granny Flat.
 
[QUOTEdevank;1221995]Parramatta is about 25 km from the Sydney CBD.

The development is NEAR, not in Parramatta. I should have just said its 15km from the CBD. :D That's clearer.


Nice work there! It is not something everyone is comfortable doing.
To be honest I wasn't comfortable with it either. Until I noticed the $$$$ savings! :eek::D


What? It is about 5 kms from Parramatta. I used to cycle there. 5+5 Kms was my limit :mad:
haha sorry your right. I just did a google search before and it showed it was 12km from Parramatta.. I did it now again and it shows about 5km..weird..my apologies :eek:

What is TDC?
Total Development Cost

From memory, I think I was working on 550K per unit at that stage. I used 500K as the building cost at that time.
After doing a bit of simple projections on equity and cash flow I ended up building a Granny Flat.[/QUOTE]

How has the granny flat been going?
 
LeoT said:
How has the granny flat been going?
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It is great for medium term as it gives good cashflow. Costed 112K to build. Renting out for $365 pw. Main house was reduced from $540 to $520 pw.

I would still prefer a duplex if I have 20-30 years view.

I'm planing to keep it this way until this area is re-zoned for townhouse development.
 
devank said:
It is great for medium term as it gives good cashflow. Costed 112K to build. Renting out for $365 pw. Main house was reduced from $540 to $520 pw.

I would still prefer a duplex if I have 20-30 years view.

I'm planing to keep it this way until this area is re-zoned for townhouse development.
Click to expand...

Did you have to put on more equity for the lend on the granny flat then the 90% loan. I recall someone saying on GF they don't lend 90%.
 
LeoT said:
Did you have to put on more equity for the lend on the granny flat then the 90% loan. I recall someone saying on GF they don't lend 90%.
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I'm a safe player. So it is 80% LVR. GF is mainly for the cash flow. You go negative in terms of equity. As an example, total value is goes up by about 70K on a 100K GF build. Whereas, duplex can in fact increase your equity position.
 
devank said:
I'm a safe player. So it is 80% LVR. GF is mainly for the cash flow. You go negative in terms of equity. As an example, total value is goes up by about 70K on a 100K GF build. Whereas, duplex can in fact increase your equity position.
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hmm very interesting. How big is the GF?

Thanks mate.
 
LeoT said:
hmm very interesting. How big is the GF?
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It sounds like you are not aware of the GF thingy even though you are in NSW :p

Here is summary.
60 sqm.
10 days approval.
1-2 months build time.
Still one title - one set of council & water rates.
Separate tenants.
Separate electricity.
Separate bins and postbox.
One water bill.
Two landlord insurances.
 
Mate, your way off on your construction costings (unless your building yourself).

I have three separate titled duplexs in Belmore and I can tell you right now that the cost to build when using a builder is circa $700k. That is not including any other works (DA, demolition, section 94 etc..)

Two are 600sqm and one is 700sqm. Good luck at $550k, its going to be made out of cardboard.

Also your sale price of $1,000,000 is veryyyyyy aggressive. Unless you are providing 5 bedrooms, separate living room and dining room on ground floor and a second living room upstairs there is no way you will hit the $1,000,000 mark. Your looking more at $800k-$900k for a standard 4 bed duplex with two living rooms on the ground floor.

I am currently in the middle of the subdivison phase and can tell you either I am being ripped off after getting three separate quotes or your heads in the clouds. Also, until you have the CC expect an extra 5% increase in building costs for those 'unknowns'.
 
belvoir said:
Mate, your way off on your construction costings (unless your building yourself).

I have three separate titled duplexs in Belmore and I can tell you right now that the cost to build when using a builder is circa $700k. That is not including any other works (DA, demolition, section 94 etc..)

Two are 600sqm and one is 700sqm. Good luck at $550k, its going to be made out of cardboard.

haha we shall see mate :D btw whats your internal size? Also our 600k is just for building, doesn't include consultants, architects, not storm water or earthworks. not sec 94 and not demolition. Just purely for building. Do you know what internal size im building??
Also your sale price of $1,000,000 is veryyyyyy aggressive. Unless you are providing 5 bedrooms, separate living room and dining room on ground floor and a second living room upstairs there is no way you will hit the $1,000,000 mark. Your looking more at $800k-$900k for a standard 4 bed duplex with two living rooms on the ground floor.

A duplex, 4 bedroom on my street that's 10 houses away, 40 sqm smaller than what im building and nothing special just sold for 950K. So when you say 800-900 you obviously don't know/understand this area.
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westminster said:
Whilst I'm not numberist 4, 5 and 6 feature prominently in upcoming projects.
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Just in terms of economy of scale I found (not always) that the costs can be spread among more dwellings but the profit margin is better.

Whats your experience in this?

Cheers
 

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