My latest development - 4 dwellings in Melbourne

[Hodge]

How long is a piece of string? Can take 3 months, 6 months, 24 months. Sometimes you may never get through the process if it's not done correctly.

Oscar

Does it help if I attach a few green ones to the application?

 

[oc1]

Does it help if I attach a few green ones to the application?

Haha. Try it and report back to us!

 

[oc1]

Update

Earlier in the week the plumbers were out there for 2 days completing the below ground sewer. They partially completed the stormwater too, mainly behind the rear units.

Tomorrow the concreter begins. Forecast for rain tomorrow but the rest of the week should be nice and sunny

Cheers
Oscar

 

[tiger97]

Hey Oscar,

nice one mate. What suburb?

Scott.

 

[oc1]

Hi guys

I thought I would put up a few pics showing the various stages before the concrete is poured. Weather permitting this will occur tomorrow. I'll then wait a few days for this to settle as proper curing will greatly increase concrete strength and durability. My carpenter will then come onto site to begin construction of the frames.

 

[westminster]

Hi guys

I thought I would put up a few pics showing the various stages before the concrete is poured. Weather permitting this will occur tomorrow. I'll then wait a few days for this to settle as proper curing will greatly increase concrete strength and durability. My carpenter will then come onto site to begin construction of the frames.

My 4 concrete pads are curing for 28 days - oh to be building in Melbourne! Only 22 more days.

 

[Tigerboy]

Concrete doesn't really need to cure for 28 days. At 28 days concrete reaches 98% strength, but in July the Concretors could have added an accelerate into it. It would have sped the curing process. Where time is money, this should have been done.

If it were in summer maybe not, because curing too quickly can have adverse issues.

Huss

 

[oc1]

concrete pics

Some photo's attached of the concrete slabs, both during and after. A very good job by the concretor. Over the weekend we had a lot of rain making the site muddy. I have the excavator there cleaning out the mud and excess soil and placing crush rock throughout. This should be enough to avoid going in knee deep


Oscar

 

[oc1]

Full steam ahead from here. The chippie has commenced after waiting for the concrete to cure. Photo's show the bottom plates on a couple of the units and the remaining units have been marked out. This was we can order the roof truss for late next week.

The bricklayer also starts Monday with the garages.

Oscar

 

[jacko18]

Hey guys,

This is one of my newest developments which is about to commence. It’s a 4 townhouse/unit development – 2 townhouses and 2 single story units located in a decent suburb of Melbourne. As a result it will have a pretty good finish. Last week the existing house was demolished so it is vacant land now.

I bought this mid last year with an 8 month settlement and obtained the Town Planning Permit during this time . At the moment the numbers look like this:

Land & Town Planning costs

Land: $570,000
Stamp duty/legals: $31,000
Permits, surveyor, council application fee, engineering etc: $30,000
Total Costs: $661,000


Construction

Total build: $625,000 (I'm a registered builder so my costs are naturally lower than a developer)
Subdivision (open space levy in Victoria): $28,000
Interest: $35,000
Bank app fee: $5,000
Titles & legals: $2,000
Total Construction cost: $695,000

COMBINED TOTAL (LAND & CONSTRUCTION): $1,356,000

The dwellings today would have a combined value of about $1,840,000. I’m allowing 6-7 months to build. They range from 11-18 squares and rents would be around $1,730 pw. I’ve attached images of the house during demolition and after demolition. Blocks look so much bigger when vacant!

The plumber is in next week to do the underground work, followed by the concrete guy right. I’ll upload images as it develops. Any questions feel free to ask.

Cheers, Oscar

Oscar when you do a devolopment are all the fees town planning sub division are they part of all the loan

Or do you need cash for all that and you can only lend on the land and construction

 

[westminster]

Oscar when you do a devolopment are all the fees town planning sub division are they part of all the loan

Or do you need cash for all that and you can only lend on the land and construction

Jacko - this may depend on your bank and/or builder. Most banks don't want to include those items as they aren't actual physical items but they can turn a blind eye if a Builder is willing to put them into the HIA contract as provisional sums - and the sums stack up well for the development.

 

[jacko18]

Jacko - this may depend on your bank and/or builder. Most banks don't want to include those items as they aren't actual physical items but they can turn a blind eye if a Builder is willing to put them into the HIA contract as provisional sums - and the sums stack up well for the development.

Okay thanks I may need a blind eye banker

 

[westminster]

Okay thanks I may need a blind eye banker

I have $40k of water and council fees in my Gwelup development built in that the bank is funding
This development is fully funded by the bank.
If you can roll it all in together it's my preference - the downside is that you are then paying for it over 30yrs but for me its all part of the development deal and so all those costs are factored into the cost of each house.

 

[jacko18]

I have $40k of water and council fees in my Gwelup development built in that the bank is funding
This development is fully funded by the bank.
If you can roll it all in together it's my preference - the downside is that you are then paying for it over 30yrs but for me its all part of the development deal and so all those costs are factored into the cost of each house.

Well that's how Oscar seems to work it out aswell by the look of it

 

[jacko18]

Well that's how Oscar seems to work it out aswell by the look of it]

 

[oc1]

Oscar when you do a devolopment are all the fees town planning sub division are they part of all the loan

Or do you need cash for all that and you can only lend on the land and construction

Generally everything you need in order to develop (town planning, building permit documentation etc) occurs before you have your construction loan approved. This then means you need to pay for this in cash rather than rolled into the loan.

With water fees and all other authority charges some builders will include this in your building contract ie make an allowance for it as Myf has stated.

 

[jacko18]

Generally everything you need in order to develop (town planning, building permit documentation etc) occurs before you have your construction loan approved. This then means you need to pay for this in cash rather than rolled into the loan.

With water fees and all other authority charges some builders will include this in your building contract ie make an allowance for it as Myf has stated.

So for this project you would of handed over 61 grand cash and the rest would of been able to be in loan

 

[oc1]

So for this project you would of handed over 61 grand cash and the rest would of been able to be in loan

Not quite. Don't forget you need the 20% for the land and construction plus all the other fees listed.

 

[jacko18]

Not quite. Don't forget you need the 20% for the land and construction plus all the other fees listed.

Yeah I've taken that into account that could be equity but yeah the cash for the rest might get me stuck

 

[westminster]

Yeah I've taken that into account that could be equity but yeah the cash for the rest might get me stuck

It does take quite a bit for a development. Because you are building 3-4 mini houses at once plus land. It gets a lot more expensive than just buying one thing.