Richmond Development #2

A

Aaron_C

Hi everyone,

I am currently undertaking a project to build 12 townhouses in Richmond Hill, Victoria. Here's the link to my first thread: http://www.somersoft.com/forums/showthread.php?t=74101

I thought I'd update everyone here with some 3D images of the 'artist's impression' of the development to give it some context.

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View from common courtyard.

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View from Waltham Place (i.e. laneway).

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View from 4-storey townhouse facing the Melbourne CBD.

Let me know your thoughts.
 
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Before I was wondering if you would have trouble selling town houses for 2m+. But these impressions look amazing - I think if they end up looking like this and have the quality of finish you intended you will do great.

Looks pretty awesome mate
 
Hi Aaron,

They look great.
Are they separately titled or will there be a body corp? I know when we bought our TH in Richmond that the separate title was a definite selling point. (ours are a set of 6 that were $1.1-$1.2M in 2007), so not as pricey obviously.
 
Hi RedCat, they will be a small body corporate to clean the common garden and undergroudn carpark. But body corporate fees will be minimal.
 
Nice artist impressions. How much do you think construction estimates of each dwelling will cost?

Wow - is that an internal lift from the interior view of the lounge room?
 
I expect entire construction costs to be $8-9m so hard to say how much each one will cost. This will include the underground car park and landscaping. Yes each of the 8 large townhouses has an internal lift all the way down to basement level :)
 
Very impressive indeed, Aaron.

But I'd caution against going too concrete-looking, at least based on these renders.

The pre-formed facade looks brilliant, but beware carrying it on as an overall theme throughout (referring to the courtyard obelisks and ground level raft beam look), because it may put off non-modernist types.

Softening the look with natural stone might be useful, but if that's stack stone implied on the dining room wall, definitely reconsider it (because it so cheapens any fitout, speaking as an industry insider.)
 
Hi Aaron,

Photos look great. In the first post you mentioned estimated return on cost of 40% which would be a smashing result if you manage to achieve it. You are hoping to begin construction in 12 months (after planning approval). How are you dealing with holding costs in the interim until planning approval and construction is complete?

Nathan
 
This is what real hitters like Aaron do.

So many people just talk and talk and talk about their 2 or 3 little houses in the middle of nowhere.
 
Yep....need more of them.....particularly in the current environment.

Not saying that Aaron is not going to make money.....but I have picked up a few developments at bargain prices as the bank had to step in to complete the development.

Aaron....not trying to be funny...assuming $8m in construction and $1m in holding and other costs. That is about $1.1625 each.

So assuming that you have a 40% margin....that is about $15m for the whole development. Do you think you will get $1.9m for each???

Are my maths right??

Some examples of what other town houses are selling for:

http://www.realestate.com.au/property-townhouse-vic-richmond-108443906

http://www.realestate.com.au/property-house-vic-richmond-108414191

http://www.realestate.com.au/property-house-vic-richmond-108426396

Do you think it is good time for this sort of development??

I people had the money would they not buy something like this?

http://www.realestate.com.au/property-townhouse-vic-brighton-107546986

or this

http://www.realestate.com.au/property-townhouse-vic-brighton+east-108522936

Look forward to your response....


Deltaberry said:
This is what real hitters like Aaron do.

So many people just talk and talk and talk about their 2 or 3 little houses in the middle of nowhere.
Click to expand...
 
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Those townhouses you are talking about are not comparable to mine (except the Riverside Richmond one).

http://www.realestate.com.au/property-townhouse-vic-brighton-107546986 - Located right next to a train station. I don't know about you but if I was going to spend $1.5m I would not want to be right next to a train line. Overcapitalisation fail.

http://www.realestate.com.au/property-house-vic-richmond-108414191 - Located right next to a Freeway. Why would you spend money on a house next to a freeway?

http://www.realestate.com.au/property-townhouse-vic-richmond-108443906 - Ugly, horrible location, hard to get to, bad architecture around, small (the land content is ~70sqm and that includes 2 car parks on ground level).

Plus I'm not relying on 100% finance so I can hold. I know it will be harder to sell $2-3m properties - everyone knows that. But the rewards are there for me if I do sell them for that price.

http://www.realestate.com.au/property-townhouse-vic-brighton+east-108522936 - It's Brighton East...it's not Brighton, nor is it a Richmond.
 
As a Richmond local have to agree with Aaron. His townhouses are in the 'right' part of Richmond (or Richmond Hill). I wouldn't trade Richmond for Brighton any day of the week.

The river location is kinda removed from the heart of Richmond. Nice outlook but I bypassed that location when I moved here. The other two locations are pretty crap too. I also looked at Glasshouse Street a few years back and felt it too was a bit out of the way. Richmond is a big suburb for the inner city and like most suburbs it definitely has it's good and bad parts.
 
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