My duplex develpment begins. (assuming no issues in cooling off!)

S

Sesster

OK so i know its still very early days but i thought it would be interesting to diary from beginning to end this development here and I know the feedback from you guys is awesome. So here I go.

Yes it early days but my offer has been accepted and I am in the middle of a cooling off period to settle on a place that will be demolished and building a duplex. Without giving away too much (yet) as you never know who is reading this, the site is in Sydney, an area thats gentryfying and home owner dominated. A family and quiet area located about 18 kilometres north-west of the Sydney CBD

I am in the process of getting a surveyor and hydrolics engineer to the site to make sure there is no major issues with stormwater etc, before the cooling off period ends. If all goes well with the report I will not recind and go ahead with the purchase. Exciting times!

Zoning, frontage, land size: Meets the council criteria for dual occupancy build. Lots of similar in the area. 4.2.2

Very early feaso:

Land size: 790sqm (to the eye the land looks fairly flat)
Land: 739k
Construction: 500k (med specs)
interest: 50K
Consultants: 40k
Building designer 8k
Land surveyor: $1995
legal:3000
S94: 7500
DA, BA, CC: 10k
Demolition:15k
Selling fees: Nil
contingency: 18k



Rough TDC: 1,390,500


Toal sales: 1,700,000 (based on todays figues not counting any possible future price growth)

Approx return on TDC: $309,500
Approx margin: 22.2%

I intend to hold both. no PM fee as i will PM it. Rental return for similar new in the area is 650-700.

l'll keep you guys updated as things unfold. Fow now, I hope i get a good report from the engineer! Let me tell you, it was a NIGHTMARE to get this surveyor in to do a report 1 week before xmas as most said no time. Stress levels were high. Off to bed.

Night.

Sesster
 
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Thanks Dtraeger and Television! If all goes well by Friday with the Engineers report, that will be one big relief!

Negt at the moment its a rough 22% but i do know there are more costs I have probably not included so I do expect the rough 22%, when taken in other costs probably will end up being 17-19% margin on TDC. For this market in sydney now, I'd be pretty happy with that! :) And this place is only a 20 minute drive to Sydney CBD so medium to long term it will be good stock to hold.
 
$500k for construction of a duplex seems very tight - how many sqm are you building? Is the construction turnkey? i.e. drainage, concreting?

Also I think it will cost you well above $10k for DA/CC/OC.

Are you going through the council or PCA?
 
TheFinanceShop said:
$500k for construction of a duplex seems very tight - how many sqm are you building? Is the construction turnkey? i.e. drainage, concreting?

Also I think it will cost you well above $10k for DA/CC/OC.

Are you going through the council or PCA?
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I was also going to ask about construction costs as thought they were a little light, but figured I'd wait until there was a rough design. Considering purchase of the land is still pending final survey, I removed my silly questions haha.

Who's managing the build on your behalf? Going to engage a builder to run the whole show?
 
I was also going to ask about construction costs as thought they were a little light, but figured I'd wait until there was a rough design. Considering purchase of the land is still pending final survey, I removed my silly questions haha.
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Yep no concept design yet and no quotes from construction. Once I have these Ill be able to put more solid figues.


Shahin yup im going through council most likely.

With regards to DA,BA and CC for 10k I was only refereing to application costs.
 
As a property developer wanna-be, I hope to learn from this thread. Many thanks Sesster and good luck!

Could you please elaborate a bit on the loan you will be using. What sort of deposit would be required for such a project?

Also, you mention consultants fees. What are you referring to here? Did you pick the property yourself or use a buyers agent?

Will you be managing the build? I think TV already asked this. :)

So many questions! :0
 
Could you please elaborate a bit on the loan you will be using. What sort of deposit would be required for such a project?
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Residential Lend, 90% on property fixed for 2 years @ 4.97%, Construction loan details not certain yet.

Also, you mention consultants fees. What are you referring to here? Did you pick the property yourself or use a buyers agent?
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Consultant fees are the professionals you need for different parts of the project, depending on what your building, eg engineers, drafter, town planner etc.

Will you be managing the build? I think TV already asked this
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I'm going to be the project manager, but it's the builder who will be managing 'the build', thats his job. I'm just the guy with the whip sitting on top..haha j/k

With the forecast for the coming week, I don't think there will be any issues with cooling off.
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Hi Geoffw, I'm not sure what forecast your referring to mate..

Thanks guys, hope it all goes OK, I'd be happy with that as i know developments never go 100% smoothly!

Sesster
 
Sesster said:
Hi Geoffw, I'm not sure what forecast your referring to mate..
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The joker means the weather forecast...

Anyway good luck with the build! Sounds really interesting, 15-20 mins drive from Sydney CBD is a winning location. Is it north, south or west? just out of curiosity as I live in Sydney. I have always thought about doing something like this in Sydney but the IP budget just never stretched so far!!
 
The joker means the weather forecast...

Anyway good luck with the build! Sounds really interesting, 15-20 mins drive from Sydney CBD is a winning location. Is it north, south or west? just out of curiosity as I live in Sydney. I have always thought about doing something like this in Sydney but the IP budget just never stretched so far!!
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hahah! Damn, and I was looking into property forecasts, anything new happening this week with property, govt etc! Argh Geoffw!

Tess i'd rather keep the North , south, East etc till after settlement..you never know who is reading this forum. Just recently I read a post on this forum where the investor was in the middle of negotiations on a place and the vendor replied to his post on the forum! jeez. Plz don't take offence though.

Good luck with the project!

I reckon your build cost and contingency are a bit light.

Add at least 10% contingency - always!
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Hi Chindonly, Yes I agree but I think I have overcompensated on other costs. I have a revised feaso moving the numbers and its a similar return to what is always only indicitive..in this case 17-19%. After DA i'll be able to have the numbers a lot tigher.

Thanks guys.

Sesster
 
OK guys.

Need some advice. I am trying to choose the building materials at this point. I want an all rendered look as opposed to brick veneer at botton with rendering on top to break up the look. I have always thought that an all rendered look has a more modern and sharp appearance.

I am considering:

1. Blue board for entire construction PLUS rendering OR
2. Brick veneer at bottom and have it rendered PLUS blue board rendered at top

Any opinions? In the surrounds area there are lots of brick veneer not rendered at bottom and cladding rendered on top (not sure the material maybe blue board or similar)

There is also some all rendered look but not sure the materials used. If I used all blue board, do you think it would reduce the value of the duplex simply as there is no 'bricks' used?

Thanks for any advice.

Sesster
 
Sesster said:
OK guys.

Need some advice. I am trying to choose the building materials at this point. I want an all rendered look as opposed to brick veneer at botton with rendering on top to break up the look. I have always thought that an all rendered look has a more modern and sharp appearance.

I am considering:

1. Blue board for entire construction PLUS rendering OR
2. Brick veneer at bottom and have it rendered PLUS blue board rendered at top

Any opinions? In the surrounds area there are lots of brick veneer not rendered at bottom and cladding rendered on top (not sure the material maybe blue board or similar)

There is also some all rendered look but not sure the materials used. If I used all blue board, do you think it would reduce the value of the duplex simply as there is no 'bricks' used?

Thanks for any advice.

Sesster
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Did they give you a cost saving to go all Blueboard vs. Brick Veneer on the ground floor?

I'd probably go with Brick Veneer on the bottom, simply from a longevity/structural integrity point of view.
 
I would stick to what is common in the area. In any event i would not go with blue board downstairs. Brick is better. More durable.
 
Sesster said:
OK guys.

Need some advice. I am trying to choose the building materials at this point. I want an all rendered look as opposed to brick veneer at botton with rendering on top to break up the look. I have always thought that an all rendered look has a more modern and sharp appearance.

I am considering:

1. Blue board for entire construction PLUS rendering OR
2. Brick veneer at bottom and have it rendered PLUS blue board rendered at top

Any opinions? In the surrounds area there are lots of brick veneer not rendered at bottom and cladding rendered on top (not sure the material maybe blue board or similar)

There is also some all rendered look but not sure the materials used. If I used all blue board, do you think it would reduce the value of the duplex simply as there is no 'bricks' used?

Thanks for any advice.

Sesster
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Some buyers appreciate the "solid" look of facebrick and will affect their decision-making process. But if you're intending to render to get that "sharp" look, your project would be reaching out to a different market.

We've specified concrete blockwork before on projects like yours, to achieve a similar "sharp" monolithic modernist look without messing around with rendering on the ground floor, yet get that "solidity" so desired by many.

I'd steer clear of blueboard as much possible. Some pre-coated FC sheets are a tad better, and all you'd need to do is to paint over. But if you like render on the upper floors as well, a pre-coated polystyrene cladding product would give you nice sharp edges and reveals... and good insulation levels as well!
 
Sesster - we have some keen newbie developers anxiously waiting for an update to this thread. With the growth in Sydney over the past 12 months I imagine your profits must be far better than you originally expected. Please share the good news and make us all jealous. :)
 
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