Nollamara Development - Stage 1 (DA) WooHoo!!

Hi all,

been round here a while and been looking at all the posts you guys and gals post. Your help for others and inspirational own stories are what keeps me coming back. So thanks for everything so far, here's to my own development :)

stage 1 - DA Approval for 6 units within two multi dwellings
stage 2 - Subdivide block
stage 3 - Build rear multi dwelling
stage 4 - Knock over existing house and build front multi dwelling

I'm well happy with the progress so far, I'm receiving help from Momentum Wealth and their business partners. The initial drawings I've received look awesome and I still can hardly believe we're going to develop.

Were planning a devlop and hold strategy and repeating this process at least 4 times so I can play golf every day of the week :)

Would you mind running your eyeball across these drawings and see what you think? I've already got some ideas which I'll put here to save them being duplicated.

1. General: I'll be changing some of the sliding doors to the balconies to accommodate furniture etc. Either moving them to the left or right instead of the middle
2. In Unit 2 plot 2 and Unit 3 plot 3: move the laundry out of the bathroom, I think this will be fairly easy by simply moving the vanities, shower and toilet around to then create and opening from the hallways to an enclosed laundry similar to the other units
3. In Unit 3 Plot 1: recess the door so it meets the other hallway doors so a double bed fits better in the room
4. In Unit 3 Plot 1: Wrap the kitchen around the other wall similar to other units
5. General: Overhead cupboards all around kitchen and possibly laundry
6. Front Elevation: change left hand wall from being so obtrusive and bare to a more refined look. I was thinking of adding a cornice type piece that would be similar to the portico's design.

These items I have are fairly basic as I think the design is pretty much spot on.

Can anyone see anything I've missed?

Just so you know these drawings are copyrighted and I have been advised to say so.

thanks all
Dave
 

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Looks good! I really like the designs and agree with your changes except I'd possibly consider leaving the laundry in the bathroom but put up a curtain and rod to save space but conceal.
Would you be interested in sharing the numbers at all or PM? Ta
 

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Wow, all this on 728 sqm is that right? I like the design, simple but works.

The builder I may be using builds mainly in Nollamara and he too is currently building multi units.

A couple of questions, you are holding I am assuming it will be cash flow positive... nice.

The profit margin% if you care to share.

MTR
 
Wow, all this on 728 sqm is that right? I like the design, simple but works.

The builder I may be using builds mainly in Nollamara and he too is currently building multi units.

A couple of questions, you are holding I am assuming it will be cash flow positive... nice.

The profit margin% if you care to share.

MTR

Yeah it's amazing they've managed to fit it all in a still keep the design looking great.

It's gonna be cash flow positive by about $800 a month after all expenses once stage 3 is complete, based on a 1.1 mill loan and 15% holding costs which may be a little on the low side. Once we've got the front 3 done it will be very nice indeed :)

the biggie for me is that I'll have access to around $350K equity after stage 3 to start the next development :)
 
Hi DaveH
Great stuff.

I am doing it a little different to you, I am building 2 developments sites pa and should end up with around $450,000 in equity. I am not sure how many I will hold or sell, but for me selling is important so I can create strong cash flow/income streams. Its also nice to accumulate a few along the way.:)

From what I am seeing multi units is probably the way to go, greater profit

What I have difficult is sourcing development sites.

What about your finance, so you went commercial, I thought you would need to sell a couple OTP??? Not sure how it works.

MTR
 
What about your finance, so you went commercial, I thought you would need to sell a couple OTP??? Not sure how it works.

MTR

Up to stage 3 we're using resi loan, then another resi loan for stage 4. If we did both dwellings at the same time I would need commercial but I don't have the funds at this time. Hopefully in the future at some point we could purchase and build both dwellings at the same time but that's way off.
 
Up to stage 3 we're using resi loan, then another resi loan for stage 4. If we did both dwellings at the same time I would need commercial but I don't have the funds at this time. Hopefully in the future at some point we could purchase and build both dwellings at the same time but that's way off.

Nothing wrong with this, helps you move forward, very creative:)

As I mentioned hard to get the deve sites, last block in Nollamara that was for sale only a couple of weeks ago, sold on first open with 9 offers on the table 728 sqm, $560,000, I am not really sure how the figures would stack up at this price for a multi build.

MTR
 
Nothing wrong with this, helps you move forward, very creative:)

As I mentioned hard to get the deve sites, last block in Nollamara that was for sale only a couple of weeks ago, sold on first open with 9 offers on the table 728 sqm, $560,000, I am not really sure how the figures would stack up at this price for a multi build.

MTR

Wow that's amazing, I purchased ours just before xmas for $471K, woohoo!!!
 
Wow that's amazing, I purchased ours just before xmas for $471K, woohoo!!!

I think you did well, I am sure you still had some competition.
Good luck buying the next one though, its pretty tough you are competing with the builders who get first pick from their RE agent friends.... its "you scratch my back I scratch back"
 
Looks good dave.

I am looking to do the same thing so if you dont mind ill pm you to discuss and compare a few things between our projects.

Cheers
 
Dave, How long will it take to complete the project.

Is this right, you do the first 3 rear builds then access equity for the front 3. so will you rent the rear units on completion after demolishing the front property?? Reduce holding costs?

Cheers MTR
 
Looks good Dave.

What is your target market to rent to? A couple with a main bedroom and a study, or 2 occupants?

I note that there are 2 bathrooms in each, but they will be a bit tight, especially getting in and out of the shower, also some small bedrooms. Would normally try to keep them all as doubles if at all possible, normally 3.0 x 3.0 at a minimum.

Are you planning to install a dresser and shelving in the robes, as this is a great space saver (see attached from one of my developments, which is a 3.0 x 3.0 room with a queen bed in it, utilising the wardrobe space and leaves room for a set of drawers on either side).

Cheers,
Matt
 

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ive got a bit of a different thought.

with the recent price rises, would it not be worth considering just doing the old boring 3 villas? if resale prices are around the 450-70k or so for good 3x2s (im not all that familiar with the area) then you could probably create equity around the 270-300k mark which is not a lot less than the 350k mark for the apartments, a hell of a lot quicker, less of a pain in the **** and less capital intensive

just a thought anyway and those are just rough figures based on quick mental math

apart from that, congrats on the big step and best wishes
 
ive got a bit of a different thought.

with the recent price rises, would it not be worth considering just doing the old boring 3 villas? if resale prices are around the 450-70k or so for good 3x2s (im not all that familiar with the area) then you could probably create equity around the 270-300k mark which is not a lot less than the 350k mark for the apartments, a hell of a lot quicker, less of a pain in the **** and less capital intensive

just a thought anyway and those are just rough figures based on quick mental math

Hi Sanj
I think you hit the nail on the head, I was just sitting down working through this. If you build the right units, excellent specs they will actually achieve $500,000 in Nollamara, we are talking stone bench tops and plenty of 'x' factor around $600,000 total build, including site works.

Dave paid: $471,000 block
Build: $600,000 (3 units) + $30,000 interest (assuming block is flat)
Total: $1,100,000

End value: $1,500,000, better proposition by far, even if you have to throw another $50-60K you would still be in front building 3 villas, they are not boring, I beg to differ, you need to pick the right builder and make sure his Italian and his wife must be an interior designer of sorts:)
 
Glad to see we're on the same wavelength! Im doing 2 multis at the moment and the workload is on an entirely different level to villas, it really is. In this case if there is no extra profit or possibly less profit in multis (based on your figures) then i really dont see the point.

I agree re up speccing it too, Myf''s builder Inspired is pretty good with this stuff and has done heaps in Nollamara. I was in their office last week and was quite impressed with standard spec inclusions etc.

Even if you allow an additional 100k for contingency, stamps, anything else you still end up with 300k equity if your 500k figure is accurate. Definitely worth considering.
 
Glad to see we're on the same wavelength! Im doing 2 multis at the moment and the workload is on an entirely different level to villas, it really is. In this case if there is no extra profit or possibly less profit in multis (based on your figures) then i really dont see the point.

I agree re up speccing it too, Myf''s builder Inspired is pretty good with this stuff and has done heaps in Nollamara. I was in their office last week and was quite impressed with standard spec inclusions etc.

Even if you allow an additional 100k for contingency, stamps, anything else you still end up with 300k equity if your 500k figure is accurate. Definitely worth considering.

Not to mention the additional layer of risk, and you are not in and out, the smaller builders are taking 5-6 months to complete the builds, do the 3 villas and move onto another project, quick turnover.

Multi developments have no idea but expect at least 18 months from beginning to end???
 
I think the other important factor to include is the fact that he will be holding them all. I dont know that market very well over that way but it might be that the yield will be a much better position with 6 apartments than 3 villas. While also getting the 4-5-600k equity to leverage off for his next project.

Also i think the other determining factor is the staged development so there will still be an income coming in. And a bit of risk management only having to comit to half the project/outlay and being able to pull the pin if the first half blows out.

The numbers wont lie so it would actually be very interesting to see both senarios side by side to see the pros and cons and timeframes.

Cheers
 
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