Buy it from her at market value, rent it out to her in the meantime while you get plans/permits, then build?
My latest development - 4 dwellings in Melbourne
- Thread starter oc1
- Start date
Buy it from her at market value, rent it out to her in the meantime while you get plans/permits, then build?
Hi guys, wondering if anyone can help, new to investing, but situation I have is mother inlaw has a nice old house on 700sqm block, would love to demolish house and build 3 x 2 story townhouse on there, she owes 40k on loan, so she would need 1 to live in, not sure if anyone done something similar or has a good suggestions on structure I could do, we have good equity in our ppor but she has the land and location for a good investment, any help?
You can go to 90% on a three unit development and up to 4 units at 80% under residential lending.
One lender I know of will go on end value on a build strata. So if LVR is an issue this could be an option worth exploring?
Attempted hijacking... Suggest you start a new thread.
Final Numbers!!!
Now that everything has settled, here are the final numbers:
Interest costs an extra $5k
Building costs an extra $20k, mainly due to site costs and higher quality specs.
Total costs $1.38m
End values came in higher. The two units I sold during frame stage would e worth another $30-40k now.
Total sales price of 2 units sold at the time: $824k
Total value of units kept: $1.1m
The profit margin is around 40% and a pretty good dollar profit. Total rent on the kept units are $870pw gross. Nice
Last month I found another one in the suburb nearby to replicate the same thing. The big blocks are hard to come by.
Any questions, just shoot.
Oscar
Now that everything has settled, here are the final numbers:
Interest costs an extra $5k
Building costs an extra $20k, mainly due to site costs and higher quality specs.
Total costs $1.38m
End values came in higher. The two units I sold during frame stage would e worth another $30-40k now.
Total sales price of 2 units sold at the time: $824k
Total value of units kept: $1.1m
The profit margin is around 40% and a pretty good dollar profit. Total rent on the kept units are $870pw gross. Nice
Last month I found another one in the suburb nearby to replicate the same thing. The big blocks are hard to come by.
Any questions, just shoot.
Oscar
Well done Oscar!! do you have any more photos?
Love to see more photos too, and really like the kitchen, forgive my ignorance, what size is the oven, is there a dishwasher and are the cabinets all laminate, I know Westminster talked about doing a laminate pantry rather than brick as you save space and am trying to squeeze every bit of space whilst planning a granny flat. Thanks.
Hi OC1
Are you getting your development sites off market or were they advertised on line as well?
Curious to see wether you are beating a lot of competition by being in the know and having the contacts for when these sites do come up.
I'm searching around Bris for something similar that you have just completed.
I have engaged a property developer up here to source my site and he has had a few properties presented to him off market. But we are still searching for the correct site. Have just missed out on a couple as the demand for these sites remain strong.
Cheers
Are you getting your development sites off market or were they advertised on line as well?
Curious to see wether you are beating a lot of competition by being in the know and having the contacts for when these sites do come up.
I'm searching around Bris for something similar that you have just completed.
I have engaged a property developer up here to source my site and he has had a few properties presented to him off market. But we are still searching for the correct site. Have just missed out on a couple as the demand for these sites remain strong.
Cheers
Now that everything has settled, here are the final numbers:
Interest costs an extra $5k
Building costs an extra $20k, mainly due to site costs and higher quality specs.
Total costs $1.38m
End values came in higher. The two units I sold during frame stage would e worth another $30-40k now.
Total sales price of 2 units sold at the time: $824k
Total value of units kept: $1.1m
The profit margin is around 40% and a pretty good dollar profit. Total rent on the kept units are $870pw gross. Nice
Last month I found another one in the suburb nearby to replicate the same thing. The big blocks are hard to come by.
Any questions, just shoot.
Oscar
One down, six more to go.
Nice work, looking forward to viewing more photos and more projects.
Cheers
MTR
Love to see more photos too, and really like the kitchen, forgive my ignorance, what size is the oven, is there a dishwasher and are the cabinets all laminate, I know Westminster talked about doing a laminate pantry rather than brick as you save space and am trying to squeeze every bit of space whilst planning a granny flat. Thanks.
Ovens and dishwashers are 600mm Bosch. German stuff is always superior.
Kitchen is stone and laminate. Works well. We don't use brick as much as the folks in WA.
It helps a lot being good with the local agents. I bought one in the same suburb last week, off market, which will fit 8-10 apartments. I'll start a thread on that from the planning stage as it would be a good one from a leaning point of view.
This block here hit the market when the area was a bit quiet. Still attracted 3 other bidders from memory - big block good location. My offer was the second highest but it was cash unconditional and the settlement period suited the vendors (8 months).
I'll load up more photos next week.
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Fantastic insight
Oc1 ,
Just read the entire thread & was thouroughly entertained by ur pic's & running commentary of the unit development you just completed.
Would love to do something like this myself & can't wait for the progress of ur next one.
cheers Tradingbull
Oc1 ,
Just read the entire thread & was thouroughly entertained by ur pic's & running commentary of the unit development you just completed.
Would love to do something like this myself & can't wait for the progress of ur next one.
cheers Tradingbull
Thanks for sharing, love these threads.
Couple questions, are have you uploaded any plans. Didn't see any but I could of missed them. Be great to see the drawings.
Also total cost was $644k for construction, you're a builder so this would of been at cost price. Could you give an estimate of the approx cost this would of been for someone going through a builder or clients of yours? Would 10-20% ontop sound about right?
Couple questions, are have you uploaded any plans. Didn't see any but I could of missed them. Be great to see the drawings.
Also total cost was $644k for construction, you're a builder so this would of been at cost price. Could you give an estimate of the approx cost this would of been for someone going through a builder or clients of yours? Would 10-20% ontop sound about right?
Thanks Myf. Here are some photo's just prior to the final clean of the front townhouse.
Oscar
Attachments
Thanks Brady. Yes, I would add another 20% and that should be about right.
I'll upload some plans shortly.
Cheers
Oscar
Hi Oscar, I really like the polished wooden floors and the Dutch gables. I think the Dutch gables and the width of the property makes it look like a proper house rather than another cheapie townhouse.
