Subdivision and New Build - Virginia QLD

Discussion in 'Adding Value' started by letiha, 3rd Sep, 2014.

  1. letiha

    letiha Member

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    So I have been wanting to share but was waiting for it to go unconditional and that happened yesterday.

    Property is 809sqm with a 20 meter frontage, it is already on 2 lots but the split is across the block and so we will have to obtain a reconfiguration of the boundaries.

    The first hick up was finance...bank was only willing to lend on land value of a single block and the post war 3 bedroom house so that meant we had to chuck in a bit more of a deposit.


    So here is our current plan:

    1. Property settles on 19 September.
    2. I have already organised a town planner for the council application and the vendors were happy for a surveyor to come out today so the ball is already rolling for the council application to be lodged on settlement.
    3. We have to arrange for the house to be removed...a few options there...selling the house...if not a free removal..and worse comes to worse have to pay for it to be demolished.
    4. We have already picked our houses we are building 2 x Pinnacle 276 from Hallmark homes so once the house is removed and the new plans have been sealed and title is registered and services are connected we can apply for the construction loan and hopefully begin construction in the new year.

    Will keep you all updated here...after building 7 new houses in the past this is my first subdivision so fingers crossed it goes as smoothly as possible.
     
  2. HD_ACE

    HD_ACE Game-Changer

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    Good work. Hopefully all goes well.

    What do the numbers look like?
     
  3. WilliamB

    WilliamB Member

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    Congrats!

    I think I know the one you are talking about! We went and had a look but its a bit outside our area so we didn't make an offer.

    Looks like a great street with lots going on!

    I look forward to hearing how it goes!

    Cheers,
     
  4. beachgurl

    beachgurl Member

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    Congratulations! I think we had the same valuer as I got the same bad Val with the same reason.

    What do you think of hallmark so far? I think I'm going to sign a tender for the same house. Spoke to the sales guy at length today and the price looks fair too.
     
  5. letiha

    letiha Member

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    I've built with them before (along with Plan Build, Metricon, Stylemaster and Clarendon)

    With Hallmark I deal with Ron Wilson at Northlakes he is a great guy and is a straight shooter.

    My previous experience with them is head office can be a bit slow but once the build gets started they are very quick. Prices are reasonable with good inclusions and decent upgrades without huge mark ups... for example they have recommended someone to do the ducted aircon and will let them in during the build for just over $10k which is pretty good for 4 bdr a study and 3 living areas.



    As far as the numbers go...We got it for $525,00.... we think with the costs for the DA (and all thats included with that), service connections and allowance for house removal it will work out at around $280k a block....so if we get the house sold or removed for free will have some spare cash.

    The build.... So that's 4 bedrooms + study(with a door large enough to be a 5th bedroom, lounge, dining, media and activity area... Floating timber floor downstairs and some nice finished inc stone benches and ducted aircon, landscaping, lawn, driveway, fences we should be able to finish it for around $280,000.. So that's a total of $560,000.

    Lots going on in the street (Walter Street) at moment I think roughly it will be valued mid $600k's... and would rent for somewhere between $600-$650..I think its a nice type house as its a bit bigger than your average 4 bedder so may appeal to a bigger family.

    Hoping to lock in a nice fixed rate if we can get things moving...so to put things in context...even if we did borrow at 100%...which we haven't 5% on $560,000 is around $540 a week....plus rates, insurance, property management, maintenance...minus depreciation it looks good from day 1,
     
  6. hpresident

    hpresident Member

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    Hi Letiha,

    Good job. Just looked at the Pinnacle 276 design, very neat :)

    I am currently doing a similar project in Sunnybank Hills. Got the DA approval now. Are you using a project manager for the subdivision? If not mind pointing me out for the right steps?

    With the built, is 280k turn key? including site cost, finishing and landscaping ?
     
  7. beachgurl

    beachgurl Member

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    The quote I've been given for the same house without fencing is around 15K higher than that figure.
     
  8. hpresident

    hpresident Member

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    Perhaps we could do a Somersoft bulk build discount :)
     
  9. WilliamB

    WilliamB Member

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    Probably slab work etc, piering, that stuff really adds up.
     
  10. beachgurl

    beachgurl Member

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    Yep, a 1.5m fall and possibly an H1 slab here.

    A somersoft discount would be great :) One referral on here would convert into a sale much more often and possibly repeat business on further projects.
     
  11. WilliamB

    WilliamB Member

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    1.5M fall and H slab will EASILY consume an extra 15k in my (limited) experience.
     
    Last edited: 4th Sep, 2014
  12. WilliamB

    WilliamB Member

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    Hallmark do not offer very big discounts, even for volume buyers. They already offer supremely good value for money!
     
  13. eyespy

    eyespy Member

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    wow...really interested to read as we were looking at splitter blocks in nearby areas but didnt go ahead with it.

    a few questions, how long do u expect the build time to be ?

    With this build company, do you need to visit site often to make sure they are going well or do you think this can be done from interstate (i'm interstate)?

    so from your numbers, i guess a gross profit of 180k before interest charges etc
     
  14. WilliamB

    WilliamB Member

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    Depends on how comfortable you are with the build process. I trust my site super to get it right, but I still like to meet him regularly to keep in the loop of how things are going. I'd not want to do it interstate, but that's just me.
     
  15. hpresident

    hpresident Member

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    Anyone here know a good project manager for subdivision?
     
  16. beachgurl

    beachgurl Member

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    I'm interstate too. I'll just be getting them to take photos after each stage before I pay them. I might do the odd day trip to check out the progress.

    My fun for the day- I was given a rough estimate for the house slide and raise of 20k and the written quote came back today at 36k!
     
  17. beachgurl

    beachgurl Member

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    I appointed a draftsman after subdivision stage (but prior to house slide and titling approval) and he pretty much handheld me through the process. He told me he can do project management too. Will PM his details to u.
     
  18. RPI

    RPI Member

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    Subdivision and Construction Management do a lot of our client's post DA work.
     
  19. hpresident

    hpresident Member

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    Thx beachgurl. PM would be nice
    Also thx RPI
     
  20. letiha

    letiha Member

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    Update:

    House settled on the 19th of September and our application for realignment of the boundaries was lodged with council on the 24th of September, I am hoping we will have a decision by then end of October if its as straight forward as we helps.

    Hickups - Despite doing searchs etc. There is a storm water drain down the side of the property that we did not find in the search we got our conveyancer to do, this will result in some increased building costs on one of the house, i've budgeted in about $10k for this.

    Also we neded up having to put in more cash becasue the value would only value it as a large block with a house and would not take into consideration it was already on 2 blocks and the boundaries could be realigned.

    Next Step: other than getting the council approval, either finding someone to remove the house or have it demolished and then pay the initial deposit with Hallmark and get the soil tests done.

    We are also getting a valuation done by one of the valuers one our banks panel that will basically show the proposed plan on the subdivided block and with specific inclusions and what the completed value is, this means we should have to borrow either nothing or a small amount for the next stage.

    In regards to "turn key" for $280,000 (obviously not including the $10k on one of the blocks above), we arrange most things ourselves, this save a lot of money.