Sunshine Development Diary In Detail

negt said:
still can't believe you have been duded to 16% return. in a risky adventure like development.this year Montgomery share fund has returned more with less headaches.!
Click to expand...

I'm not sure if you're aware that he already owns the property and this is an exercise of adding value to the existing property. The described margin is only paper profit.

Also, the 16% is margin on development cost, the actual return on Brendon's contribution is much, much higher. You might need to read the whole thread.

Also can you back the Montgomery Share Fund with actual numbers (like Brendon did) comparing to this deal; explaining why it's better?
 
Finally, an update

Slowly but surely making progress.

Abolishing
-Paperwork for abolishing gas and electricity was completed and submitted 29 Dec, the WORST time to do it. Abolishment was finished a month later. Troublesome procedure.

Finance
-There were a few stuff ups and finance that should have been finished mid Jan was finished mid Feb. Very not fun. Gotta love MB's who deal with the banks and make the whole process work (Peter T is the man). The bank (ANZ) did a 66 page valuation :eek:

Demolition
-Due to start next Thursday. Not sure how long it takes. Arranged by and in the capable hands of CDS.

Over All
Everything is on track with completion delayed by around a month. Will have a better idea later on the (very) approximate completion date.
 
A bit more progress with the exciting part of the development now not far off.

Site set up was finished this week and the building permit should be issued next week. After the permit is issued, there'll be plumbing and electrical work done THEN the concreters/slab!!! :D

A couple of pics kindly provided that show the site is bare and ready to go. Hard to imagine 3 units on that bare patch of ground.

leftview.jpg
rightview.jpg
 
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Hmm, that last plan shows a 3m driveway with an addition 1.8m before the garage door- only 4.8m from fence to garage door. How tight is that driving wise, council is ok with that?

I thought they'd all want more...
 
bryn said:
Hmm, that last plan shows a 3m driveway with an addition 1.8m before the garage door- only 4.8m from fence to garage door. How tight is that driving wise, council is ok with that?

I thought they'd all want more...
Click to expand...

The plans went through a number of changes between the initial plan nd the final approved plan. Originally all 3 garages were to be accessed by the driveway so council wanted a gap of 5.2m between the fence and garage doors. This was then changed to 4.8m for unit 2 garage and 7.2m for unit one garage.

All this changed again in the final plan when access to unit 1 garage was by a crossover.

CDS had to get a report from a traffic engineer to submit with the application to make sure that the driveway width, gap to garages etc was kosher. With out the report, I'd say council would have wanted more as you said.
 
Building Permit Finally Issued

The building permit was meant to be issued a bit over a month ago but was delayed until the end of last week.

Easement and City West Water
An easement runs along the back of the property and so a carport instead of a garage was to be built over it for unit 3. Council approved the carport but City West Water refused the carport. In the end the only way to continue with the development was to scrap the carport and have a car space instead.

Naturally this change had to go back to council where there would have been another month at least delays if CDS had not come to the rescue with some skillful negotiating.

Outcome
The loss of a carport is bad news in terms of value for unit 3 and likely to even affect rent. May check with my local REA for estimates but it really makes no difference at this stage.

A very approximate date for completion is now October.

Could Be Worse and Now the Fun Starts
Tempting to whinge and whine about the delay but this is all part of the game with developments and will have a very minor affect on the final outcome. Very grateful I have CDS in my team taking care of the development and using thair experience and professionalism to deal with these problems. Hate to think how much trouble I'd be in trying to do this alone.

Plumber is booked in for this Friday, the concreter next Monday and the slab to be finished in around 7 days subject to weather.

Hoping to have some pics to show soon :cool:
 
Hi Brendon. Good to hear it is progressing albeit the delay. It is a shame you cant put the carport. Will keep this is mind as it is quite often for properties to have easement running at the back of the block
 
Work still not started due to more delays by City West Water. Delays have been dealt with and plumber booked for early next week.

Total cost of water and sewerage is $3600 for the three units.
 
Little things can certainly throw curve balls at the best laid plans.

Good to see it's getting on track now and 'actual' work has commenced. I hope all the rain we've been having here doesn't set you back much. It's hard to build in the rain :(
 
Due to a P site classification (high moisture and clay content), the two choices for slab were 1 - Stiffened raft slab or 2 - Waffle Pod footing slab. Ended up going for a waffle slab. The polystyrene blocks/pods are clearly visible in the pic.

A little nervous in having what is basically foam boxes in the foundations but it is cheaper, faster, requires less earth works, better insulation and does a good job.

 
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