Sunshine Development Diary In Detail

Advertising soon!!!

Received an update from CDS last Friday. Too busy (lazy) to post on the weekend.

Land Survey - Brimbank required this and it is done

New Plans - The main change was to push unit 2's garage forward by 30cm and unit 1's garage back by 2m. This will allow unit 3 to reverse into the front of unit 1 garage and drive out onto the street forward which keeps the council happy.

This means unit 1 and 2 lose a little of their private open space and there is now direct acess from the garage to unit 1 which is handy.

Next Step - once the traffic engineer comments on the update plans, a letter of support will be lodged with council and advertising should soon follow.
 

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Well done. Please keep us posted. By the way, is there going to be a body corporate considering there is a shared driveway? If so, who will manage it? Sorry if I am asking dumb question, trying to learn as much as I can
 
imbi3 said:
Well done. Please keep us posted. By the way, is there going to be a body corporate considering there is a shared driveway? If so, who will manage it? Sorry if I am asking dumb question, trying to learn as much as I can
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From what I've read there is shared area like the drive you mentioned and shared walls so there would need to be a body corporate or equivalent. I don't plan to sell so not an issue with this development but it will be with the next one. That leaves at least a year to read up and learn about that :rolleyes:

Update
Traffic engineers letter of support has been received and submitted to council by the designer. Hope to have a response within two weeks.
 
For somebody that is first time developing, you seem to know what you need to do and done the research that is needed. Are you in China while you're coordinating all this? If you are, that's impressive and kinda risky at the same time.

Thanks as I'm learning a lot from this thread. Good luck.
 
Telejazzer said:
For somebody that is first time developing, you seem to know what you need to do and done the research that is needed. Are you in China while you're coordinating all this? If you are, that's impressive and kinda risky at the same time.

Thanks as I'm learning a lot from this thread. Good luck.
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Thanks for your vote of confidence but I cannot take credit. I did enough research and due diligence to learn that the property had good development potential and I needed a firm that was extremely professional and took care of the whole process from start to finish. This allowed me to rule out companies like Pillar + Post who were horrible and settle on CDS (complete development solutions) who have been great.

CDS are the ones coordinating the whole the development and ensuring everything goes smoothly. I just read their updates, pretend I know what I'm doing in my replies and learning as I go.
 
Mindmaster said:
CDS are the ones coordinating the whole the development and ensuring everything goes smoothly. I just read their updates, pretend I know what I'm doing in my replies and learning as I go.
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Brendon, I reckon you know more than what you think :)

Cheers
Oscar
 
The boys from CDS have been busy dealing with traffic engineers (two), the architect and the council planning officer. A meeting was held with Brimbank council last Thursday that went well. There have been some great changes and plans should be lodged with council early this week. CDS are doing a fantastic job!

Changes (see new plans below)
-Unit 1 has 3 bedrooms, an ensuite AND a WIR!!!:eek:
-Unit 1 has a separate driveway
-Unit 1 and 2 are divided by 1 meter gap between the walls
These changes will result in a slight increase in building costs and a significant increase in value and rent.

The House
The laundy in the house is leaking with the roof needing repairs. Again. That dump is slowly falling apart and this development is going to put it out of its misery. A mercy demolition.

Current Dimensions
Unit 1
79m2 ground floor
64m2 upstairs
2.5m2 porch
25m2 garage

Unit 2
66m2 ground floor
2m2 porch
23m2 garage

Unit 3
74m2 ground floor
1.5m2 porch
23m2 garage
 

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That was a brilliant idea to have the garage facing the street, it free up the space for living area. Good to see the development is progressing.
 
Hi Mindmaster,

Just wondering with the amendments and slight changes you have made is your estimated profit still in check?

Also more generally, are 3 unit sites such as this readily achievable in the market today with 600m2 blocks?

Nathan
 
Latest Changes to Plans
CDS had another chat with the town planner who was concerned about overshadowing issues so plans were revised again with unit 1 reduced in size and unit two enlarged
-Unit 1 loses ensuite. This hurts and is likely to drop the value a bit cos everyone wants their ensuite but can't be helped.
-unit 1 bedroom 1 a little smaller
-unit 2 bedroom 1 and unit 2 lounge a little larger
-Unit 2 POS is reduced, unit 1 POS is enlarged. End result is a better use of space

So given the limited size of the site and council digging their heels in, this is a good result from CDS who are doing an excellent job. By keeping council happy, complaints from advertising are less likely to be taken seriously and approval without extensive delays is more of a certainty.

Update on expected values and rents
Passed the previous plans (with ensuite :( ) to the REA who manage the IP for current estimates and these are the lower end of the values given
Unit 1 $380k
Unit 2 $320k
Unit 3 $310K

The good news is the weekly expected rent is better
unit 1 $360
unit 2 $330
unit 3 $330

These prices is similar but a little higher than results on REA.com

This gives a return of around 18% which is lower then the accepted minimum but still gives me the $150k equity gain I need to be happy :cool:

Hopefully the loss of the ensuite will not make the numbers for unit 1 much lower.

An increase in values for Sunshine between now and completion and the use of flash fittings may also increase the return.
 
nat_melb said:
Hi Mindmaster,

Just wondering with the amendments and slight changes you have made is your estimated profit still in check?

Also more generally, are 3 unit sites such as this readily achievable in the market today with 600m2 blocks?

Nathan
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Hi Nathan,

Just updated values and profit in the above post. With chopping and changing due to council objections, the estimated profits are lower. With completion at least 7-8 months away, these numbers can still change alot.

MichaelW has some great threads on his multiunit development worth a couple of million that shows how prices/values can change alot over the course of a development. In his case, value was doubled due to changes in the market over a period of 5 years or more (these numbers are from memory).

If you have a good mob doing the design for you, 3 units are easily acheivable on a 600m2 site.

The trick would be getting 3 bedrooms for all units and (ideally) ensuites. I reckon you'd need (unexpert estimate) 650m2 (15m x 43m). This assumes you are not ambitious planning wise and down't go for 2 floors with units 2 and 3. Many councils i.e. Brimbank don't like middle and rear units to be 2 floors.
 
Thanks for the update Brendan. Shame on the slight reductions you've had to make but hey you've got to keep the council happy. Without them no approval. You're estimated equity gain is still pretty handy at around $150K so good job. Hope it all goes well through to completion and look forward to seeing the progress unfold.

Cheers
Nathan
 
Advertising

Went to advertising today and CDS has put up a notice.

14 days and counting.......

Council have been constantly involved in planning and all their objections/recommendations taken on board so even if there are a few compalints, it should not be an issue.
 
Couple of pics of the advertisment. The model and photographer are courtesy of CDS.

Hope to get a pic on the weekend that shows the house with all its decrepitness in the background.
 

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Mindmaster said:
Couple of pics of the advertisment. The model and photographer are courtesy of CDS.

Hope to get a pic on the weekend that shows the house with all its decrepitness in the background.
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Hi mindmaster, interesting reading. Quick question... Did your consultant hold a pre-application meeting with Council to review your plans back in April? This step is essential to achieve a timely assessment, especially when you are pushing the boundaries with Rescode. Fingers crossed for you, the real fun starts now :)
 
Advertising finished the end of last week and only two objections were received. Neither of those objections were a problem and the planning permit is due to be issued in 4-5 weeks.

Gotta love the combination of development friendly council and professional developers :D
 
Town Planning Permit granted

THe NOD (notice of decision) was given late August and the NOD is now confirmed as a Town Planning Permit :D

Around 6 months in total from day 1 to receiving the town planning permit. An excellent result considering the ambitious nature of the development (squeezing a lot of stuff on a small site) and one of the key players at council taking annual leave.

Next is to sort out the building permit, engineering working drawings and a few other things with construction looking to start in January.
 
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