New to value add strategies! Costing help for subdivision and construction please.

Hi Guys,
I would really appreciate your help! We are dreaming big and perhaps getting a little over our heads. I'd appreciate any assistance as I'm practicing crunching numbers and hoping to learn as much as I can before acting.

We are interested in a large block (790m2) in Reservoir, City of Darebin, R1Z. It has a 3 BR house in the front requiring a renovation. This block is suitable for subdivision so we could do a buy/reno/subdivide/build/sell. From my research (thanks Ash from Stacey Surveying) a two lot subdivision is certainly achievable although there are many examples in the neighbouring properties of 3 lot divisions of similar size. I am waiting on town planner to return my call and will definitely be in contact with a private planner prior to auction!

So just to check if this deal warrants further attention/is feasible:
If I build 2 x 2 BR townhouses in the back:

Subdivision costs: $30000-40000, including plans, legal, applications, council fees.
Clearing of land: $5000 (only has a shed and some minor bushes)
Construction: $1500 per sqm x 100 per unit - $300000 building costs
- This should include all internal fittings
Road/Garages: $10000 (I have no idea!)
Landscaping $5000
Holding costs (Loan for subdivision and construction)
Other costs (exclude buying and selling costs)?

Prior to auction, in order to get a better idea about true costs I should:
1. Contact a private town planner to determine whether a 3 lot division is likely to be approved?
2. Will exact costs for subdivision be outlined in a quote from a surveyor? I have seen a few posts on SS where people have kindly outlined their costs so have a little bit of an idea. It was mentioned somewhere that you can get all this information in one simple quote!
3. Call dial before you dig to determine where water/amenities are to try to determine costs of this for subdivision?
4. In general, do you normally contact a builder prior to purchase to get a more precise costing schedule?
5. There are some new units nearby which sold for a good price and from the pictures look good. How do you find out who the builder was?

Thanks guys! I appreciate your wisdom. There are a number of properties which are similar to above so any information or tips would be appreciated to help us crunch the numbers and minimise risk.
 
Back
Top