R-Codes does it apply to land area or developable space?
- Thread starter Lynchy
- Start date
I'm not certain I understand your question.
The zoning of R50 is for the 1012sq but instead of the plot ratio allowed being 607sqm as it would be normally for R50 it is 2530-3542sqm of plot ratio
So effectively you can build 3 times as much stuff as you normally be able to.
But the R50 zoning (50 properties per acre?), does that apply to the 1012sqm or the 2530 to 3542sqm?
The City of Stirling has recently passed a motion to "prohibit" multiple dwellings on blocks zoned R50 and under which affects this block. Council advised it's currently with the commission and they expect a decision in 6 to 12 months
I've done a quick feasibility, I'd love someone to tell me if I'm close to being accurate
1011sqm block with a plot ratio of 2.5 to 3.5 based on bonuses
Apartment Feasiblility
Allowable floor space, lets say a plot ratio of 3. 3 x 1011sqm gives you an allowable buildings space of 3,033sqm. I take 15% off of that for services like plumbing, electrical, aircon etc and I'm left with 2,578.05sqm of actual building space. or up to 859.35 per floor.
Lets go with 2 bedroom apartments which is probably the most in de3mand apartment in the area. Each apartment at 85m2. Within 800m of a train station so I only need 0.2 car spaces per apartment. If I go with 9 apartments per floor, that gives me 95sqm for car spaces which at an average of 13sqm = 7 car spaces which is plenty at only 0.2 per apartment needed.
So we have decided to go with 3 storeys of 9 apartments = 27 apartments.
27 apartments at 85sqm = 2,295sqm of building. At a cost of $2,200psqm that's a total cost of $5,049,000 plus the purchase cost of the land which was $750,000 = $5,799,000. Add another 10% on top of that for drawings, designs, application fees, architects etc So a TOTAL BUILD COST OF $6,378,900
Old 2 bed apartments in similar location sell for $300,000
Let's say you get an average of $350,000 for each apartment = $9,450,000
That's about $3 million profit
Townhouse Feasibility
Let's go 150sqm per townhouse for 3 bedrooms
Same allowable floor space of 859psqm per level after services, minus 8 car spaces gives us 760sqm of developable space. Lets go with 80sqm on the bottom and 70sqm on the top. That gives me the opportunity to build 8 townhouses with enough land left over for a small courtyard for each which is expected to come with townhouses.
$2,200 x (150sqm*8) = $2,264,000 for the build cost plus $750,000 for the land = $3,390,000 plus 10% for drawings, plans, applications etc so a total build cost of $3,729,000
So let's say you get an average of $500,000 for each
= $4,000,000
Profit of $271,000
I think there's plenty of profit to be had doing apartments but probably not doing townhouses?
I've done a quick feasibility, I'd love someone to tell me if I'm close to being accurate
1011sqm block with a plot ratio of 2.5 to 3.5 based on bonuses
Apartment Feasiblility
Allowable floor space, lets say a plot ratio of 3. 3 x 1011sqm gives you an allowable buildings space of 3,033sqm. I take 15% off of that for services like plumbing, electrical, aircon etc and I'm left with 2,578.05sqm of actual building space. or up to 859.35 per floor.
Lets go with 2 bedroom apartments which is probably the most in de3mand apartment in the area. Each apartment at 85m2. Within 800m of a train station so I only need 0.2 car spaces per apartment. If I go with 9 apartments per floor, that gives me 95sqm for car spaces which at an average of 13sqm = 7 car spaces which is plenty at only 0.2 per apartment needed.
So we have decided to go with 3 storeys of 9 apartments = 27 apartments.
27 apartments at 85sqm = 2,295sqm of building. At a cost of $2,200psqm that's a total cost of $5,049,000 plus the purchase cost of the land which was $750,000 = $5,799,000. Add another 10% on top of that for drawings, designs, application fees, architects etc So a TOTAL BUILD COST OF $6,378,900
Old 2 bed apartments in similar location sell for $300,000
Let's say you get an average of $350,000 for each apartment = $9,450,000
That's about $3 million profit
Townhouse Feasibility
Let's go 150sqm per townhouse for 3 bedrooms
Same allowable floor space of 859psqm per level after services, minus 8 car spaces gives us 760sqm of developable space. Lets go with 80sqm on the bottom and 70sqm on the top. That gives me the opportunity to build 8 townhouses with enough land left over for a small courtyard for each which is expected to come with townhouses.
$2,200 x (150sqm*8) = $2,264,000 for the build cost plus $750,000 for the land = $3,390,000 plus 10% for drawings, plans, applications etc so a total build cost of $3,729,000
So let's say you get an average of $500,000 for each
= $4,000,000
Profit of $271,000
I think there's plenty of profit to be had doing apartments but probably not doing townhouses?
The development requires nil street frontage so you get some extra space there.
Allowable height is actually 5 storeys at the front and 3 at the rear. Am i right though that a lot of the conditions change with buildings above 3 storey? ie need for a lift, additional fire exit/proofing etc?
R50 is either 5 townhouses or as per Lynchy's calculations above.
You can have either.
You can have either.
Hi Aaron,
Are you aware of City of Stirlings recent amendment in regards to prohibiting multi dwelling developments on properties zoned R50 and under? What do you think the chances are of it passing?
I've only just become aware of it even though it greatly affects a block I own.
I've also greatly respected your posting over the years and would love some feedback on the quick feasibility I did on the apartment development. Looks like there's a bit of potential there for a reasonably profitable development?
Lynchy,
Some notes below:
Realistically on a block that size and only going 3 storeys high you are probably only going to get 12 apartments = plot ratio just over 1.0. To get the most out of the 2.5-3.5 you'd need to go very high
Realistically it also is a massive project as you can see from the sums. That means commercial finance, presales etc
Your parking allowances is not right. If you have an apartment less than 75sqm and within 800m of trainstation you need 0.75 bays per apartment. If you build 85sqm as you suggest then it is one bay per apartment.
I would use $2500/sqm and then a 10% allowance for headworks/siteworks etc
For grouped dwellings you need min 160sqm and average 180sqm of land per site so that is only 5 townhouses.
Hi Westminster, thanks for that info.
The 2 bed properties in the area are selling quite quickly and they are all 50 to 62sqm. This new 58 sqm apartment is just down the road and sold for $440,000
http://www.realestate.com.au/property-apartment-wa-osborne+park-115352159
That's the only new one I can find. Older style apartments are going for $300,000 to $360,000
I can go 5 storeys, so if I follow a similar design as the apartment above, I could do 5 apartments a level? 5 levels is 25 apartments?
Let's say hypothetically anyway
Selling price per apartment - $350,000 conservative
Agent Fees - 2.5%
Number of units - 25
Land Purchase - $750,000
Construction cost per unit - $187,500 = $2,500psqm @ 75sqm
Contingency - 2%
Interest rate - 6%
Construction time frame - 18 months
--------------------------------------------------------------------------------------
Sales Revenue - $8,750,000
Less selling costs - $218,750
Less settlement costs - $2,500
Net Sale proceeds - $8,528,750
---------------------------------------------------------------------------------------
Acquisition - $750,000
Stamp Duty - $34,200
Financing Fees - $500
Legal Fees - $2,000
Construction - $4,687,500
Contingency - $93,750
Headworks - $14,000
Strata application fees - $3,500
Design consultant fees - $5,000
Statutory fees - $2,000
Interest (capitalised) - $180,318.06
Sub Total - $5,772,768.06
Total after GST adjustment - $5,431,268.06
--------------------------------------------------------------------------------------
Development profit (total revenue-total costs after GST adjustment) - $3,097,481.94
Development margin - 53.66%
You should be able to get 2% commission from an RE agent if you sell that many. Also comm interest rate may be higher like 7 or 7.5% if you don't have a track record of developing.
Settlement costs should be atleast $600 each or 15k
Headworks are atleast $7500 each or about $200k (in WA)
Basement car parking is probably 20k per spot or up to 90k per spot if you go below the water table.
I would think 1 beds would be in the range of 50-55sqm and 2 x2's somewhere between 67 and 75sqm each.
Are you doing underground or basement car parking?
Settlement costs should be atleast $600 each or 15k
Headworks are atleast $7500 each or about $200k (in WA)
Basement car parking is probably 20k per spot or up to 90k per spot if you go below the water table.
I would think 1 beds would be in the range of 50-55sqm and 2 x2's somewhere between 67 and 75sqm each.
Are you doing underground or basement car parking?
Easy with the parking calls, Myf. If applied like that, it's likely to be non compliant come voting with the new codes. New R Codes are min 1 bay, so the parking table drops 0.75/1 and moves up a rung.
