I read up on it in the Brimbank council notes some where but can't remember sorry. I'm using just under 50% of the block for the 3 units.
Sunshine Development Diary In Detail
- Thread starter Mindmaster
- Start date
I read up on it in the Brimbank council notes some where but can't remember sorry. I'm using just under 50% of the block for the 3 units.
Brendon thanks for the info.
Looking back at your feaso and using 50% site coverage your per sqm cost is $1733 (476K + 11K + 32K) approximately. Is this the benchmark in Melbourne?
Hi Stumpie, I don't know what the bench mark is for Melbourne. I'd say it would vary with each council and within different zones for each council.
Permits for subdivision have been issued and all requirements for subdivision have been met. I feel a subdivision coming on 
Completion is now looking at late November.
Units 2 and 3 with low budget landscaping
[URL=http://s249.photobucket.com/user/baobeibaobei/media/four.jpg.html]
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A BIR that my wife would fill in the blink of an eye.
Laundry in unit 1
Kitchen with island sink in unit 1
Completion is now looking at late November.
Units 2 and 3 with low budget landscaping
[URL=http://s249.photobucket.com/user/baobeibaobei/media/four.jpg.html]
[/URL]A BIR that my wife would fill in the blink of an eye.
Laundry in unit 1
Kitchen with island sink in unit 1
Almost done with completion at 2-3 weeks away.
-interiors are all finished with just a clean needed and a few minor things sorted out
-a pump needs to be installed in a drainage pit at the front of the property due to a hiccup connecting to council drains
-driveway to be laid
-landscaping
Looking forward to providing 3 homes for people to move into just in time to enjoy Christmas
-interiors are all finished with just a clean needed and a few minor things sorted out
-a pump needs to be installed in a drainage pit at the front of the property due to a hiccup connecting to council drains
-driveway to be laid
-landscaping
Looking forward to providing 3 homes for people to move into just in time to enjoy Christmas
Almost done with completion at 2-3 weeks away.
-interiors are all finished with just a clean needed and a few minor things sorted out
-a pump needs to be installed in a drainage pit at the front of the property due to a hiccup connecting to council drains
-driveway to be laid
-landscaping
Looking forward to providing 3 homes for people to move into just in time to enjoy Christmas
Awesome result Brendon, wondering if you would update us on any changes to costings during the build as well as if end values have moved from when you initially pulled the trigger to commence construction. well done and congrats.
yes would be interested in your review of profit now that it is complete.
when i looked at your original costings on page 1, if you did nothing, your house would have gone up $185000 (375000-190000)
if i look at your profit based on original costings then the profit would have been $210000 (1070 000 -860 000)
Sure your yield has increased, but do you think its worth the development when
doing nothing would have yielded just a little less.
Is there something i am missing ?
when i looked at your original costings on page 1, if you did nothing, your house would have gone up $185000 (375000-190000)
if i look at your profit based on original costings then the profit would have been $210000 (1070 000 -860 000)
Sure your yield has increased, but do you think its worth the development when
doing nothing would have yielded just a little less.
Is there something i am missing ?
I will update and summarise the numbers once the units are tenanted and I have a valuation.
If left as it was, there would have been miniml CG (land value only) and mounting maintenance costs. The development will add around $150k equity and improve cashflow by around $300-400 a week.
That is worth it to me.
New Pics, tenants and driveways
Inside - Almost complete with just the carpet and window furnishings to be installed. Appliances will be installed after tenants have been found so they will not be nicked.
Driveway and pits - backfilling is complete and the drainage pits have been poured. If the concrete settles with out cracking the drive way should be finished by the end of next week.
Tenants - Using my old PM (Denisa from Bells) who is great. She will start looking for tenants once the drive way is finished but is not confident about getting anyone before Christmas. This is not good news because every week the units are empty is costing over $1000. Will be hoping for early additions to my Christmas stocking.
Anyone have experience or tips for getting tenants in December
Inside - Almost complete with just the carpet and window furnishings to be installed. Appliances will be installed after tenants have been found so they will not be nicked.
Driveway and pits - backfilling is complete and the drainage pits have been poured. If the concrete settles with out cracking the drive way should be finished by the end of next week.
Tenants - Using my old PM (Denisa from Bells) who is great. She will start looking for tenants once the drive way is finished but is not confident about getting anyone before Christmas. This is not good news because every week the units are empty is costing over $1000. Will be hoping for early additions to my Christmas stocking.
Anyone have experience or tips for getting tenants in December
Anyone have experience or tips for getting tenants in December
Yep. Wait until late mid January.
We settled a house last year on December 14. Opened for 2 weekends before Christmas, had two applications, both very bad quality. We took it off the market over the break, advertised again 3 weeks later and had a choice of good applications within a single weekend.
If you get a good tenant in December that's great, but I'd rather 3 weeks vacancy than a bad tenant.
Hey Oscar / Mindmaster,
I've been looking towards a similar development myself, however have had trouble getting the numbers to stack up to a return worth lending on. I was wondering if Oscar could have a look at the attached feasibility I prepared for this particular site, with a view of someone else buying the site to develop and sell off at settlement / within the 1-3 months thereafter depending on market take-up.
I didn't know how much you are allocating to fence costs so thats been left blank. Also with the interest, at work we've been taught to calculate based on 100% finance in a straight line feasibility to consider cost of equity capital if excluding discount rates used in normal cash-flow feasibilities.
I've been looking towards a similar development myself, however have had trouble getting the numbers to stack up to a return worth lending on. I was wondering if Oscar could have a look at the attached feasibility I prepared for this particular site, with a view of someone else buying the site to develop and sell off at settlement / within the 1-3 months thereafter depending on market take-up.
I didn't know how much you are allocating to fence costs so thats been left blank. Also with the interest, at work we've been taught to calculate based on 100% finance in a straight line feasibility to consider cost of equity capital if excluding discount rates used in normal cash-flow feasibilities.
Update
Concrete pits along the driveway for drainage have been finished and a $6200 (ouch!) pump installed in the pit adjacent to the road.
Driveway - Bad weather delayed work on the driveway. Work should start real quick with good weather on the way.
Inside - Is done. May do one extra job.
Certificate of occupancy - (drum rolls......) to be issued next week
Landscaper - ready to go.
Electricity - Waiting for final word from the eletrician to connect up power
PM - PM went to the site today to take pics and get notes for advertising. No access so should happen tomorrow.
Would appreciate Your Opinion - The dead space under the stairs in unit one was meant to be converted to storage space during construction. A hiccup occured and this has not been done. Can still be done but at additional expense.
This unit will be held as a long term rental. Is it worth paying $750 to turn that dead space into storage???
Concrete pits along the driveway for drainage have been finished and a $6200 (ouch!) pump installed in the pit adjacent to the road.
Driveway - Bad weather delayed work on the driveway. Work should start real quick with good weather on the way.
Inside - Is done. May do one extra job.
Certificate of occupancy - (drum rolls......) to be issued next week
Landscaper - ready to go.
Electricity - Waiting for final word from the eletrician to connect up power
PM - PM went to the site today to take pics and get notes for advertising. No access so should happen tomorrow.
Would appreciate Your Opinion - The dead space under the stairs in unit one was meant to be converted to storage space during construction. A hiccup occured and this has not been done. Can still be done but at additional expense.
This unit will be held as a long term rental. Is it worth paying $750 to turn that dead space into storage???
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Hi Pasey, thanks for your feedback. Just received word that the cost is $750.
No other storage space for that unit.
Shelving from Bunnings would be good but getting the builder to do it will involve plastering, a nice finish, a door etc and look very good.
I'm leaning towards turning that space into storage.
Expenses and Progress
Open Space Levy - Originally at the beginning of this development 21 months or so ago the open space levy from Brimbank council was $9,500. It is now $19,000 Based on 5% of the last rates notice which was $380,000.
Profit Margin - A few larger sized expenses have taken serious chunks out of the profit margin so the final figures are looking to be significantly lower than expected. Will know for sure when tenents are paying rent and valuations have come in. The die was tossed ages ago so no point stressing.
Driveway - Does not look like much but is beautiful to me. Shows that the development is just about done
Open Space Levy - Originally at the beginning of this development 21 months or so ago the open space levy from Brimbank council was $9,500. It is now $19,000
Based on 5% of the last rates notice which was $380,000.Profit Margin - A few larger sized expenses have taken serious chunks out of the profit margin so the final figures are looking to be significantly lower than expected. Will know for sure when tenents are paying rent and valuations have come in. The die was tossed ages ago so no point stressing.
Driveway - Does not look like much but is beautiful to me. Shows that the development is just about done
