Optimise Development Rerurns?

[wii_key2]

Hello all the seasoned developers!
I just bought a 595 Sqm property to knock down the existing weatherboard house and built two town houses, may be three if council allows it.
The locality is Noble Park VIC and has a 5 feet slope from front to back
What size to build 15-20 sqm?
How to handle Dandenong council?
Design hints? For example 3 bd room needs double garage while 2 plus study 1 garage space etc.
How to minimise construction cost? I be managing the contractors,no builders.
What appeals buyers?

 

[Ace in the Hole]

Who's building license will you be using?

 

[Timmyd]

So are you a builder or borrowing a licence? It would be cheaper to get a builder to do it. I know there are lots in builders that work in that area that will build cheap units. If your not a builder yourself, you won't get the same pricing on materials and trades especially if it's a one off job.

 

[Timmyd]

And most of these questions are best answered by the local realestate agents. Have a good agent working with you is one of your most important connections in development.

 

[wii_key2]

Who's building license will you be using?

Sorry for belated msg, haven't been around.I be borrowing lic on cost plus around 6% on building cost.
I'm planning to get one and thinking of enrolling in a TAFE dip.

 

[wii_key2]

So are you a builder or borrowing a licence? It would be cheaper to get a builder to do it. I know there are lots in builders that work in that area that will build cheap units. If your not a builder yourself, you won't get the same pricing on materials and trades especially if it's a one off job.

I heard builders's margin is around 15-25% so plan is to save on these costs.

I've a friend who has done commercial building/management and will be helping.
Not sure about the material cost thoug.
If it helps I did manage my extension pretty successfully I must add and below budget

Any reasonable builder you know?
Also what portion (%age) of the land could be developed and percent left as outdoor space?

 

[Ace in the Hole]

Sorry for belated msg, haven't been around.I be borrowing lic on cost plus around 6% on building cost.
I'm planning to get one and thinking of enrolling in a TAFE dip.

Is that something builders do, rent out their licenses?
So they get paid for doing nothing? Except take on risk liability.

 

[wii_key2]

Is that something builders do, rent out their licenses?
So they get paid for doing nothing? Except take on risk liability.

Yes, I had spoken to couple of them who are quite keen. They started from 10% and now hoverign around 7% and One is plasterer and on top he wants plaster job.

 

[Timmyd]

It does happen, people lending their licences.

I wouldn't do it with my liscence. When it comes to the crunch, if the person borrowing it does the wrong thing and doesn't want to fix it. They will chase the builder whose liscence number is on the permit and he will have to foot the bill.

Not even worth 10% of costs to me if someone else is doing the job and I'm not stricty supervising.

 

[strongy1986]

How much do people pay for a townhouse in noble park?

Doesn't sound like the most profitable of developments

I would imagine your dev costs would be about 400 + 200 + 200 + 50
So 850k

I reckon you will be lucky to break even building two
Build 3 and you could be right

 

[wii_key2]

How much do people pay for a townhouse in noble park?

Doesn't sound like the most profitable of developments

I would imagine your dev costs would be about 400 + 200 + 200 + 50
So 850k

I reckon you will be lucky to break even building two
Build 3 and you could be right

You are right about building 3 to make some profit. My cost analysis;
land cleared ready for development: 390
1x double 3 room, 2 bath, garage = 180 (sell for 400-410)
2x single 2 bd, 1 study, 2 bath, garage = 300 (sell each 350-375)
Sub-division etc = 50 plus other 40 COST= 950
I be quite happy to get 100k in my pocket.

 

[Timmyd]

That's a pretty low margin I would have thought. There surely would be better projects to spend $950k on?