What was 1 of your biggest unexpected development cost?
- Thread starter LeoT
- Start date
Without a doubt my time and stress levels.
There is no way to capture or plan for this on a budget!
Actual dollars wise, we have been *lucky* to have been conservative enough enough with the budgets for the few of projects we have now done to have not really been hurt too much. The simplicity of our stuff means if we do decent dd, we are normally pretty safe.
For example, the worst we've come across is the removal of a council tree through BCC, costing around 11k, but we had 20k contingency in the budget for land prep and landscaping) so wasn't too bad.
Its easy to say "we had a number on a spreadsheet for this so it's ok", but it is still bloody annoying having to hand real cash over!
There is no way to capture or plan for this on a budget!
Actual dollars wise, we have been *lucky* to have been conservative enough enough with the budgets for the few of projects we have now done to have not really been hurt too much. The simplicity of our stuff means if we do decent dd, we are normally pretty safe.
For example, the worst we've come across is the removal of a council tree through BCC, costing around 11k, but we had 20k contingency in the budget for land prep and landscaping) so wasn't too bad.
Its easy to say "we had a number on a spreadsheet for this so it's ok", but it is still bloody annoying having to hand real cash over!
Our first and only development to date we used a "development consultant" to create and submit plans, only to have to have them re-done and re-submitted later as the initial design was directly over an easement.
It was completely our fault for not conducting a thorough due dilligence, both of the site and of the "consultant".
Turned out to be a valuable lesson which has given us the confidence to do a lot of that work ourselves or at least know who to turn to for help next time.
It was completely our fault for not conducting a thorough due dilligence, both of the site and of the "consultant".
Turned out to be a valuable lesson which has given us the confidence to do a lot of that work ourselves or at least know who to turn to for help next time.
Purchased an old panel beating shop on 2000sqm smack bang in the middle of suburbia. We are currently in the middle of subdividing.
The lease had another 6 months to go at settlement which meant we would receive approx $40k in rent.
Didn't receive a single dollar in rent and they abandoned 1 month after settlement. Left a big mess which cost $36k to clear. (lots of oils, and junk).
Luckily we didn't budget for any rent and the cost to clear ended up in the demolition costings.
In other words, never expect anything if there is no deposit bond when inheriting a property with a lease.
The lease had another 6 months to go at settlement which meant we would receive approx $40k in rent.
Didn't receive a single dollar in rent and they abandoned 1 month after settlement. Left a big mess which cost $36k to clear. (lots of oils, and junk).
Luckily we didn't budget for any rent and the cost to clear ended up in the demolition costings.
In other words, never expect anything if there is no deposit bond when inheriting a property with a lease.
Without a doubt my time and stress levels.There is no way to capture or plan for this on a budget!
haha I was laughing when I read that. Your absolutely right!I always thought in the feasibility there should be a heading " Stress Allowance"
For example, the worst we've come across is the removal of a council tree through BCC, costing around 11k, but we had 20k contingency in the budget for land prep and landscaping) so wasn't too bad.
If that's your worst then your laughing mate
Its easy to say "we had a number on a spreadsheet for this so it's ok", but it is still bloody annoying having to hand real cash over!
haha yeah... its funny cos sometimes when im paying consultants for unexpected things I feel its like monopoly money..doesn't seem real..
Don't follow a draftsman's word when he creates a new design to save money. my drafty repositioned the existing house on a splitter house so there was less distance to move it (and therefore potential dollar savings) when in fact by rotating the house meant an extra 10K in costs. I only found this out once the engineering plans were done and the application was in council.
I have some hypothetical questions in regards to a buy, retain, splitter scenario.
Would it be advisable to speak to a surveyor to ascertain where the dividing boundary will go, then take a preliminary plan of this to mass builders to find out what existing designs they have that could fit the proposed new block?
I ask as I had an original design drawn by an architect for what was a basic 3 bed unit on our first splitter and I believe it unneccessarily added to the price of the build.
Could money be saved by using a mass builder like Dixon Homes or GJ Gardner and arrange trades independently yourself for all service connections to the street as the builders usually only allow for minor setbacks?
Would it be advisable to speak to a surveyor to ascertain where the dividing boundary will go, then take a preliminary plan of this to mass builders to find out what existing designs they have that could fit the proposed new block?
I ask as I had an original design drawn by an architect for what was a basic 3 bed unit on our first splitter and I believe it unneccessarily added to the price of the build.
Could money be saved by using a mass builder like Dixon Homes or GJ Gardner and arrange trades independently yourself for all service connections to the street as the builders usually only allow for minor setbacks?
