Hi,
I would like opinions on the viability of a particular development opportunity:
Price of the Property in Sydney: 700-750k
Rental from existing old house: $400 per week
Land size: 1030sqm (18m frontage x 57.2m)
Minimum subdivision size: 500sqm
Low Density area so either subdivide to 2 lots or build Duplex (ie. no villas or townhouses)
If subdivide, driveway cannot be counted as part of the land, so 30sqm is not enough for a driveway. Therefore, duplex seems to be the the only viable option.
Potential Sale Price of each duplex 820-850k (conservative)
Potential developer does not like the big 2 storey duplexes that cover the whole frontage. Ultimately though, they do not have to like it if not going to live in it, but it would be good if there were other options.
Borrowing capacity between 400k-700k depending on the number of people involved.
What I would be interested to hear:
1. What financial arrangements can be made to facilitate a development such as this with the current borrowing capacity? Are there any ways of obtaining the finance for the project if the borrowing capacity is limited?
2. Are there any other options for a different style of duplex rather than the big non energy efficient mcmansion duplex (please don't be offended if you like them, just personal preference)?
3. What are the different options for the financial and business structure to implement such a development?
I know there may not be enough information here to answer all questions, but I would be interested to hear any comments/suggestions.
Thanks in advance.
I would like opinions on the viability of a particular development opportunity:
Price of the Property in Sydney: 700-750k
Rental from existing old house: $400 per week
Land size: 1030sqm (18m frontage x 57.2m)
Minimum subdivision size: 500sqm
Low Density area so either subdivide to 2 lots or build Duplex (ie. no villas or townhouses)
If subdivide, driveway cannot be counted as part of the land, so 30sqm is not enough for a driveway. Therefore, duplex seems to be the the only viable option.
Potential Sale Price of each duplex 820-850k (conservative)
Potential developer does not like the big 2 storey duplexes that cover the whole frontage. Ultimately though, they do not have to like it if not going to live in it, but it would be good if there were other options.
Borrowing capacity between 400k-700k depending on the number of people involved.
What I would be interested to hear:
1. What financial arrangements can be made to facilitate a development such as this with the current borrowing capacity? Are there any ways of obtaining the finance for the project if the borrowing capacity is limited?
2. Are there any other options for a different style of duplex rather than the big non energy efficient mcmansion duplex (please don't be offended if you like them, just personal preference)?
3. What are the different options for the financial and business structure to implement such a development?
I know there may not be enough information here to answer all questions, but I would be interested to hear any comments/suggestions.
Thanks in advance.
