Rockstars' Development Diary
- Thread starter Rockstar
- Start date
Yeah, 240k's worth
Yep
An old Backhoe driver from this area rekons there are around 30 different soil types in Ocean Shores. This site is quite stable compared to some. The excavator driver rekons the clay here is very stable. Doing the second cut this morning. Off to supervise now.
Bye
The site cut is finished.
When cutting a site it is wise to use the excavator efficiently. This will save time and money at the end of the job. Being a landscaper I have had plenty of experience supervising machinery. The main mistake that builders make is that they waste the valuable topsoil onsite by either burying it under clay or mixing it up with the clay and dumping it. On this cut and fill site the topsoil was scraped off first and piled away to the side. Then the cut and fill was carried out so that the clay from the cut was placed over clay where topsoil was removed. So no topsoil was buried. The fill was compacted ready for the topsoil to be brought back and placed once again where it belongs.
For this site it meant that nothing was wasted. ie: no truckloads of material needed to be dumped and no topsoil needs to be bought for landscaping. Not only that the topsoil was placed around the boundary and firmed in by the machine so that there will be very little sediment run off.
We are left with a very clean site ready for the footings and garage slabs.
Surveyor will peg out early next week. Will give some financials in next post.
When cutting a site it is wise to use the excavator efficiently. This will save time and money at the end of the job. Being a landscaper I have had plenty of experience supervising machinery. The main mistake that builders make is that they waste the valuable topsoil onsite by either burying it under clay or mixing it up with the clay and dumping it. On this cut and fill site the topsoil was scraped off first and piled away to the side. Then the cut and fill was carried out so that the clay from the cut was placed over clay where topsoil was removed. So no topsoil was buried. The fill was compacted ready for the topsoil to be brought back and placed once again where it belongs.
For this site it meant that nothing was wasted. ie: no truckloads of material needed to be dumped and no topsoil needs to be bought for landscaping. Not only that the topsoil was placed around the boundary and firmed in by the machine so that there will be very little sediment run off.
We are left with a very clean site ready for the footings and garage slabs.
Surveyor will peg out early next week. Will give some financials in next post.
Attachments
Financials
Decision Criteria.
This block was purchased with the intention to build 2 free standing duplex houses - 3 bed, 2 bath, 2 gar. It is in a quiet residential area less than 1km from shopping centre and less than 2km from the beach. Located at Ocean Shores - 30 min north to Gold Coast International airport and 20 mins south to Byron Bay. Expectations on the final value were based on a duplex which sold in the same street for 462k at the time of purchasing the land. I felt that my duplexes were a more attractive design, slightly larger in floor area and had more elevated views. The duplex that had sold was a single drive access for both units whereas my duplex had individual driveways and street frontage as it is located on a corner.
At the time of purchase the market was quite strong and we had no idea of the looming credit squeeze. We assumed that a value of 475k per unit was achievable. Therefore the project cost was estimated at around 800k and the final value at around 950k. Current expected rental is $420/wk each.
I have had more delays than anticipated in getting to site. Not only this, the interest rates have gone up around 2% since purchasing the land in June '07. Therefore already I have spent around 10k over budget for interest already. Not only that, the units have cost a lot more than expected. Initial indications from builders were for a contract of around 400-450k. The contract price I finalised was for 480k. Some of this increase was due to improvements in design and a small increase in size.
I dumped the first builder due to them increasing their price at each stage up to contract. Normally a builder will give you an initial price and then revise the figure as more information is provided such as contour survey and soil tests. I felt that I was mislead in these staged quotes as the final contract price was around 40-50k above my expectations. Something to be careful of.
Costs to date:
240k Land
8k Stamp Duty & Legals
3k Loan Costs
15k DA Fees & Design
20k Interest
286k Total
Contract price 480k
Decision Criteria.
This block was purchased with the intention to build 2 free standing duplex houses - 3 bed, 2 bath, 2 gar. It is in a quiet residential area less than 1km from shopping centre and less than 2km from the beach. Located at Ocean Shores - 30 min north to Gold Coast International airport and 20 mins south to Byron Bay. Expectations on the final value were based on a duplex which sold in the same street for 462k at the time of purchasing the land. I felt that my duplexes were a more attractive design, slightly larger in floor area and had more elevated views. The duplex that had sold was a single drive access for both units whereas my duplex had individual driveways and street frontage as it is located on a corner.
At the time of purchase the market was quite strong and we had no idea of the looming credit squeeze. We assumed that a value of 475k per unit was achievable. Therefore the project cost was estimated at around 800k and the final value at around 950k. Current expected rental is $420/wk each.
I have had more delays than anticipated in getting to site. Not only this, the interest rates have gone up around 2% since purchasing the land in June '07. Therefore already I have spent around 10k over budget for interest already. Not only that, the units have cost a lot more than expected. Initial indications from builders were for a contract of around 400-450k. The contract price I finalised was for 480k. Some of this increase was due to improvements in design and a small increase in size.
I dumped the first builder due to them increasing their price at each stage up to contract. Normally a builder will give you an initial price and then revise the figure as more information is provided such as contour survey and soil tests. I felt that I was mislead in these staged quotes as the final contract price was around 40-50k above my expectations. Something to be careful of.
Costs to date:
240k Land
8k Stamp Duty & Legals
3k Loan Costs
15k DA Fees & Design
20k Interest
286k Total
Contract price 480k
Great info Rockstar, thanks for posting.
What size block is it?
What size block is it?
I look forward to following your project with interest Rockstar. I'm in a position where I will basically be value adding to my entire portfolio as rates drop. Some will be duplex builds to hold and others adding another level and dwelling. Inrease the number of doors/leases and hence the rents, while depreciation works for me.
Are you doing this project as a hold for your portfolio or to sell? Has your intention been changed at all by the interest rate rises and building costs and what contingencies did you allow in your feasibility?
Thanks for sharing.
Are you doing this project as a hold for your portfolio or to sell? Has your intention been changed at all by the interest rate rises and building costs and what contingencies did you allow in your feasibility?
Thanks for sharing.
Hi Shady,
940sqm. It was a difficult shape to work with. I tried setting some standard project homes up on it but couldn't find any that worked without changing the plans radically. Therefore I chose to design them with the assistance of a designer/draftsman. This added to the cost a fair bit though I will have a unique product designed to take optimum advantage of the north facing site.
Have included a photo of the site plan and the DA submission on the Statement of Environmental Effects.
Attachments
Hi Player,
Sounds like you have a good plan.
Adding value/development is a contingency in itself I guess. I made around 200k on my first duplex which has given me a firm foundation to move on to more development. This one will not be as profitable but I will be ending up with a classier product in a better area which will lead to better CG.
Yes my intention is to hold onto as much as possible but will inevitably have to sell some along the journey to keep the serviceability levels realistic.
Hey are you a Player in the "Chan & Melvin" sense? ie: using the Wealth for Life Strategy?
I'm thinking my self of a Player in the sense that at the end of the day, "all is play." Life (and investing/developing) is a game and if we look at it any other way, we'll fry our brains.
Rockstar, that's the only book of their's that I haven't read (yet).
Actually since you were able to edit your username, it got me thinking to changing mine. Some posts I have read alluded to the fact that all we provide here is in the public domain. Quite naively (for my circumstances) I posted with my full name with no commercial benefit. I googled my username and guess what....it's all there. I have no problem sharing my positions amongst this group as most of here are on the same page and with the sharing comes knowledge and even prompts ideas for each of us to follow or act upon, especially if we've had an "aha moment".
I also have no problem signing off with my given name, but my user is now camouflaged. Now I remember,..... actually it was Winston Wolfe who provided the privacy post that opened my eyes. Thanks WW.
My strategy is to improve and duplicate what I own. I probably will buy again, although looking for opportunities to emerge within the current climate and then ride the next upswing. Then I'll stop and just value add.
My eight year old daughter is beckoning...........I'm off the Play now.
Rockstar, that's the only book of their's that I haven't read (yet).
Actually since you were able to edit your username, it got me thinking to changing mine. Some posts I have read alluded to the fact that all we provide here is in the public domain. Quite naively (for my circumstances) I posted with my full name with no commercial benefit. I googled my username and guess what....it's all there. I have no problem sharing my positions amongst this group as most of here are on the same page and with the sharing comes knowledge and even prompts ideas for each of us to follow or act upon, especially if we've had an "aha moment".
I also have no problem signing off with my given name, but my user is now camouflaged. Now I remember,..... actually it was Winston Wolfe who provided the privacy post that opened my eyes. Thanks WW.
My strategy is to improve and duplicate what I own. I probably will buy again, although looking for opportunities to emerge within the current climate and then ride the next upswing. Then I'll stop and just value add.
My eight year old daughter is beckoning...........I'm off the Play now.
I'm thinking my self of a Player in the sense that at the end of the day, "all is play." Life (and investing/developing) is a game and if we look at it any other way, we'll fry our brains.
Good attitude mate.
The idea of developing came to me about 2yrs ago. It was riddled with "what if's". After reading Jan's book I was very inspired by the "what if I don't" phrase. I knew I needed to go with my gut feeling which led me to researching the market in my area and crunching the numbers. My main concern was getting the development through council so I spent considerable time reading the local Development Control Plan and became familiar with all of the criteria. This proved invaluable. I have been fortunate to have developed raport with the head of planning at our local council and he grants me meeting time for free to discuss any issues with my developments - I currently have a third duplex project on paper approaching council lodgment.
As investors/developers we are all taking calculated risks - yet we are all having a go at lifes game and becoming wiser from the experiences. I hope my experiences posted here can vicariously help others who wish to tread this path.
Ian
Rockstar - enjoying this thread and the way you seem to be approaching this gives me confidence that this project will be a winner for you.
Good move on your part to take control of the machinery and set aside the topsoil for later use. Seems crazy and sensless to truck it off for escavation and then truck some in for landscaping - but it happens time and again.
Keep the pics coming as I will enjoy the progress you will be making.
rgs
wombat
Good move on your part to take control of the machinery and set aside the topsoil for later use. Seems crazy and sensless to truck it off for escavation and then truck some in for landscaping - but it happens time and again.
Keep the pics coming as I will enjoy the progress you will be making.
rgs
wombat
Hi Rockstar,
Thanks for sharing so much of your project. It was good of you to show your site plans and spenditure so far. Very inspirational. I'll be very keen to continue reading this thread and see how you progress. Brilliantly, I'm sure. Ocean Shores is one of my favourite weekend getaway spots.
How involved with the build do you plan to be? Being local, will you visit the site often?
Thanks,
Kris.
Thanks for sharing so much of your project. It was good of you to show your site plans and spenditure so far. Very inspirational. I'll be very keen to continue reading this thread and see how you progress. Brilliantly, I'm sure. Ocean Shores is one of my favourite weekend getaway spots.
How involved with the build do you plan to be? Being local, will you visit the site often?
Thanks,
Kris.
Hi Kris,
Yeah Ocean Shores has been off the radar for most people, they tell me they use to call it "Open Sores". It's really beautiful now though still overshadowed by the aura of Byron Bay and its many million dollar properties. They can have it - I would much prefer living here away from the intoxication.
I will be watching the build closely as I live within 1km of the site. I will be landscaping the site myself and you will all understand why I am a Rockstar.
- and also why I used to be a Replicarockstar. Look like a nice area to live in there Rockstar.
Is there any plans to extend the freeway down and bypass Oceans shores?
Is there any plans to extend the freeway down and bypass Oceans shores?
It's all been done Shady. They finished it last year. Not only that. The Tugun bypass has just opened so it's dual cariageway all the way from Byron Bay to Brisy now.
From Terry Ryder - Hotspotting
I'm banking on this prediction.
Oh! so those 1000m2+ blocks that back onto the Pacific Hwy will always be backing onto the Hwy/Fwy.
Thought it might be worthwhile sitting on one for a few years if they were going to move the freeway. Guess i'm too late ...as usual.