Hi Guys,
Thought I'd start another little thread for those interested in following my Mona Vale MUH development through to completion. For those who want the whole sordid background here's the first three threads I ran on this development:
June 2006: Site purchase
June 2006: Initial Feasibility Analysis and Design Concepts
Febuary 2007: Architectural Design and DA Process
Which brings us to where we are today...
Well I just got off the phone from my personal banker at WBC who's given me finance pre-approval to do the construction!
So now I'm going to kick off the next phase of the project which will be engaging a third party to do the Construction Certificate drawings and tender documentation then tender and select a builder, lock in a fixed price contract with prime costs explicitly stated and get ready to commence.
That process will probably take the next three-four months and should make for some interesting discussions. From there I might start another thread to cover the physical construction in the following 9 months or so.
So for those who are bored stupid with seeing "Mona Vale development" in thread headings, this is the one for you to put on ignore.
We're off. I've seen enough of this doom and gloom to know where the market is headed and am more than comfortable with our projected end state. For the record, I'm working on a combined Gross Realisation of $2.5M with total costs of around $2M being $800K in site costs and $1.2M in construction costs. Our rental assessment came back at $850-900pw each for total rental income of $135K odd against a total mortgage interest cost at completion of $100K at current interest rates. i.e. CF+ by $35-40K at completion and a $500K margin.
If BIS can be believed in their media today then Sydney median's are set to rise 19% by June 2012. At that stage these would be worth $1M each for a $3M GR and a $1M margin. That was always my game plan on this site, and the servicability above suggests holding until then should be achievable.
On to the next stage then...
Cheers,
Michael
Thought I'd start another little thread for those interested in following my Mona Vale MUH development through to completion. For those who want the whole sordid background here's the first three threads I ran on this development:
June 2006: Site purchase
June 2006: Initial Feasibility Analysis and Design Concepts
Febuary 2007: Architectural Design and DA Process
Which brings us to where we are today...
Well I just got off the phone from my personal banker at WBC who's given me finance pre-approval to do the construction!
So now I'm going to kick off the next phase of the project which will be engaging a third party to do the Construction Certificate drawings and tender documentation then tender and select a builder, lock in a fixed price contract with prime costs explicitly stated and get ready to commence.
That process will probably take the next three-four months and should make for some interesting discussions. From there I might start another thread to cover the physical construction in the following 9 months or so.
So for those who are bored stupid with seeing "Mona Vale development" in thread headings, this is the one for you to put on ignore.
We're off. I've seen enough of this doom and gloom to know where the market is headed and am more than comfortable with our projected end state. For the record, I'm working on a combined Gross Realisation of $2.5M with total costs of around $2M being $800K in site costs and $1.2M in construction costs. Our rental assessment came back at $850-900pw each for total rental income of $135K odd against a total mortgage interest cost at completion of $100K at current interest rates. i.e. CF+ by $35-40K at completion and a $500K margin.
If BIS can be believed in their media today then Sydney median's are set to rise 19% by June 2012. At that stage these would be worth $1M each for a $3M GR and a $1M margin. That was always my game plan on this site, and the servicability above suggests holding until then should be achievable.
On to the next stage then...
Cheers,
Michael