Perth - 3 unit/villa development
- Thread starter MTR
- Start date
Hi All
Just thought I would share the progress and numbers on first 3 unit/villa development south of Perth.
The site will be demolished in about 4 weeks, signed up with the builder and finance sourced via Homeside.
Each villa in total is approximately 140 sqm (3x2), including double garage.
Land/stamp duty - $550,000
Total Build - $579,000
Holding costs - $30,000
Associated costs - $52,000 (headworks etc)
TOTAL: $1,211,500
END VALUE TODAY: $1,520,000
PROFIT: $308,500 (approx. 25%)
Agents fees and GST (approx. $20,000) need to be deducted if I sell.
For your information these villas will rent out for $500 per week ($78,000 pa gross), interest on loan will be $60,000 pa.
Will post photos when there is something worth postingMay be a while
Cheers
MTR
Nice one MTR! what about demo costs though, and wouldnt GST on sales be a lot more than 20k? whats an easy formula to work out the gst, i understand you should purchase site with gst margin scheme clause. cheers PB
Hi
Demolishing costs came in at around $13,000 and this amount has already been included in the figures I posted ($52,000 associated costs).
$20,000 GST is what my accountant worked out based on my figures, using margin scheme, which I know nothing about yet?? Will be selling 2, keeping 1, I assume his figures would be pretty much spot on, one would certainly hope so
Cheers
MTR
Demolishing costs came in at around $13,000 and this amount has already been included in the figures I posted ($52,000 associated costs).
$20,000 GST is what my accountant worked out based on my figures, using margin scheme, which I know nothing about yet?? Will be selling 2, keeping 1, I assume his figures would be pretty much spot on, one would certainly hope so
Cheers
MTR
Brickies and weather holding up the project but all still targeted for completion in Sept/Oct, am holding them to this, told them its costing $5K per month, have allowed $35K holding costs during the build period.
Got an email from builder, have someone interested in the villas, is this my competition?? They want to view my plans??? At the end of the day I guess it does not matter flick it across I know what they are worth.
Am very happy with the builder to date, he is a real hands on no BS person and has another project manager who is a builder and love this guy, he is a gem, they address issues immediately..... fantastic.
I know the market is starting to go sideways, however there is still strong demand in Spearwood so I am confident they will sell for my end value. Plan is to sell the lot, all developments will be sold over the next 2 years, year 3 may be looking at holding a few.
Cheers
MTR
Got an email from builder, have someone interested in the villas, is this my competition?? They want to view my plans??? At the end of the day I guess it does not matter flick it across I know what they are worth.
Am very happy with the builder to date, he is a real hands on no BS person and has another project manager who is a builder and love this guy, he is a gem, they address issues immediately..... fantastic.
I know the market is starting to go sideways, however there is still strong demand in Spearwood so I am confident they will sell for my end value. Plan is to sell the lot, all developments will be sold over the next 2 years, year 3 may be looking at holding a few.
Cheers
MTR
Last edited:
Good news that things are going along well
Brickies and weather holding up the project but all still targeted for completion in Sept/Oct, am holding them to this, told them its costing $5K per month, have allowed $35K holding costs during the build period.
Got an email from builder, have someone interested in the villas, is this my competition?? They want to view my plans??? At the end of the day I guess it does not matter flick it across I know what they are worth.
Am very happy with the builder to date, he is a real hands on no BS person and has another project manager who is a builder and love this guy, he is a gem, they address issues immediately..... fantastic.
I know the market is starting to go sideways, however there is still strong demand in Spearwood so I am confident they will sell for my end value. Plan is to sell the lot, all developments will be sold over the next 2 years, year 3 may be looking at holding a few.
Cheers
MTR
hi MTR
awesome news, good to hear its going as planned with construction. looking forward to more updates and some photos.
Yes photos, we need photos!!
I was given some recommendations, but at the end of the day you need to go and check out what they are building, their quality etc. Standard of specification in the house.
Lots of leg work/home work. Phone previous clients for referrals.
I can walk into an average spec home/villa and my builders product and I can automatically see the difference. I believe I am getting better value, all the fruit at a better/lower price than what the spec builder is charging, I received 3 quotes from the larger spec builders all higher.
MTR
Hey MTR,
How do you get contact details of the precious clients to get reviews on the builder? Obviously, if you ask the builder, they will only provide referees that are happy with them.
We looked at several builders product, so check out their villas at various stages. Also our builder, builds for a developer who is also a prominent agent that I knew so gave him a call. He has used him for many years, that helped.
The builder also allowed us to view a villa which has been sold 6 months ago, the owner was more than happy for us to view it. So really its just homework and more homework, if you like what you see and happy with the price and compare apples with apples that is a good start.
Now its whether he will complete this project on time, which was told 5 months from when the concrete has been poured. Keep you posted, as I mentioned costs me around $5000 per month to hold, there is plenty of fat in the deal, nonetheless I would like it to come in on scheduled time frame.
Cheers
MTR
The builder also allowed us to view a villa which has been sold 6 months ago, the owner was more than happy for us to view it. So really its just homework and more homework, if you like what you see and happy with the price and compare apples with apples that is a good start.
Now its whether he will complete this project on time, which was told 5 months from when the concrete has been poured. Keep you posted, as I mentioned costs me around $5000 per month to hold, there is plenty of fat in the deal, nonetheless I would like it to come in on scheduled time frame.
Cheers
MTR
Of course. It would all be within the contract.
Just an update:
All brick work completed, what a pain in the ****, with continuing bad weather causing delays and also the problem securing a team of brickies.
Roof timbers up and should have roof completed on villa 1 this week and all completed by early next week, depending on weather, so now progressing quite well. Will take photos this w/end.
As the builder promised once the slab is down 5 months to complete this project which means end of October.... I don't think this will happen, probably end of November.
Have a re agent who currently has 2 clients interested in villa 1 and villa 2, both buyers looking at scaling down from larger properties. If I sell at the right price prior to completion will go with this. I have not signed up with any re agent yet, but this guy is a gun seems to get top $ for the area, see if he does the same for me.
I have learnt a lot about design since starting these builds, villa 3 is the best design and largest.
All brick work completed, what a pain in the ****, with continuing bad weather causing delays and also the problem securing a team of brickies.
Roof timbers up and should have roof completed on villa 1 this week and all completed by early next week, depending on weather, so now progressing quite well. Will take photos this w/end.
As the builder promised once the slab is down 5 months to complete this project which means end of October.... I don't think this will happen, probably end of November.
Have a re agent who currently has 2 clients interested in villa 1 and villa 2, both buyers looking at scaling down from larger properties. If I sell at the right price prior to completion will go with this. I have not signed up with any re agent yet, but this guy is a gun seems to get top $ for the area, see if he does the same for me.
I have learnt a lot about design since starting these builds, villa 3 is the best design and largest.
I believe putting in offers, however they will be selling their properties, both development sites so I expect this to be an issue.
My plan was originally to wait for completion and stage one of the villas, however I can achieve the price I want I think I am happy to go with this. Also, I am mindful about stock at the moment there is not a lot around but if this increases buyers have choice and could also change the dynamics.
Cheers
MTR
I believe putting in offers, however they will be selling their properties, both development sites so I expect this to be an issue.
My plan was originally to wait for completion and stage one of the villas, however I can achieve the price I want I think I am happy to go with this. Also, I am mindful about stock at the moment there is not a lot around but if this increases buyers have choice and could also change the dynamics.
Cheers
MTR
So now you're going to sell cheap and buy cheap from them?
Win Win
