Perth - 3 unit/villa development

MTR

MTR

Hi All

Just thought I would share the progress and numbers on first 3 unit/villa development south of Perth.

The site will be demolished in about 4 weeks, signed up with the builder and finance sourced via Homeside.

Each villa in total is approximately 140 sqm (3x2), including double garage.

Land/stamp duty - $550,000
Total Build - $579,000
Holding costs - $30,000
Associated costs - $52,000 (headworks etc)

TOTAL: $1,211,500

END VALUE TODAY: $1,520,000

PROFIT: $308,500 (approx. 25%)

Agents fees and GST (approx. $20,000) need to be deducted if I sell.
For your information these villas will rent out for $500 per week ($78,000 pa gross), interest on loan will be $60,000 pa.

Will post photos when there is something worth posting:) May be a while

Cheers
MTR
 
Sounds interesting. Look forward to this thread.

MTR, does your "Total build" cost include fencing, paving, landscaping etc (i.e. turnkey)?
 
Hi MTR

Looks very realistic. Looks like the 24% I am getting on my single devs.

Quick question..it looks like you are finishing off the development in 6 months...is that correct. I am basing this on interest payments.

The reason I ask is I understand that there is a shortage of brick layers and this is causing up to 4-6 week delays to builds in Perth.

MTR said:
Hi All

Just thought I would share the progress and numbers on first 3 unit/villa development south of Perth.

The site will be demolished in about 4 weeks, signed up with the builder and finance sourced via Homeside.

Each villa in total is approximately 140 sqm (3x2), including double garage.

Land/stamp duty - $550,000
Total Build - $579,000
Holding costs - $30,000
Associated costs - $52,000 (headworks etc)

TOTAL: $1,211,500

END VALUE TODAY: $1,520,000

PROFIT: $308,500 (approx. 25%)

Agents fees and GST (approx. $20,000) need to be deducted if I sell.
For your information these villas will rent out for $500 per week ($78,000 pa gross), interest on loan will be $60,000 pa.

Will post photos when there is something worth posting:) May be a while

Cheers
MTR
Click to expand...
 
chibs said:
Sounds interesting. Look forward to this thread.

MTR, does your "Total build" cost include fencing, paving, landscaping etc (i.e. turnkey)?
Click to expand...

Yes, except fencing and demolishing of property (I have allowed for this in my costings, ie $52,000)

Also, high spec build for a villa IMO.
 
sash said:
Hi MTR

Looks very realistic. Looks like the 24% I am getting on my single devs.

Quick question..it looks like you are finishing off the development in 6 months...is that correct. I am basing this on interest payments.

The reason I ask is I understand that there is a shortage of brick layers and this is causing up to 4-6 week delays to builds in Perth.
Click to expand...
,

Hi Sash
Between 5-6 months, dependent on the weather.

I know my builder uses the same crew and they just jump from project to project been with him for years, don't anticipate any issues at the moment. Fingers crossed.

I recall in the last boom when I was building single deve, would you believe they ran out of bricks, yes you heard it right bricks. So many people building at that time.

MTR:)
 
Nice one,

How big is the block ? Can you put up floor plans ? Who is the builder if you dont mind ? I would like to get a quote of them as well, and how long did it take you from settlement to starting the build ?

Chomp
 
Wow that is quick!

My one in Wellard had a glitch...another 1.5k for soakwells as they hit rock.

There was also a worry about brickies showing up on time...I think that is now sorted.

MTR said:
,

Hi Sash
Between 5-6 months, dependent on the weather.

I know my builder uses the same crew and they just jump from project to project been with him for years, don't anticipate any issues at the moment. Fingers crossed.

I recall in the last boom when I was building single deve, would you believe they ran out of bricks, yes you heard it right bricks. So many people building at that time.

MTR:)
Click to expand...
 
Chomp said:
Nice one,

How big is the block ? Can you put up floor plans ? Who is the builder if you dont mind ? I would like to get a quote of them as well, and how long did it take you from settlement to starting the build ?

Chomp
Click to expand...

742 sqm, R60

I settled April 2013

Sat on my hands for a while as not sure which way to go ie spec builder or own drawing etc.

We submitted plans in August 2013 when new R codes were ratified. It was approved by council I think in about 6 weeks. Lease on the property expired in November 2013 so we made a decision to build after Xmas/holiday break as all the builders knock off and we just had the tenant on periodic.

My plan is to have 3 on the go this year. I have one commencing in July (Melb) and will be settling on another in 2 weeks (Kardinya)

Will post drawings once I work out how to do it?? As you can see I am technically challenged.

My g/friend will not be happy if I post the builder.
However I can give you 2 that came very close and checked out their work, it is also excellent.
Promenade Constructions Dianella (Tom)
Allure Homes (Sam)

Also, how will your figures stack up and is your site currently zoned R40??

Cheers
MTR:)
 
Hi MTR,

I too have an interest in this area, I also have an R60. I have been waiting for development to start in this area before committing to a strategy.

Did you consider apartments? in theory you could build 7x 2x2 plus 1x 1x1 on your R60 site.
 
snappyman said:
Hi MTR,

I too have an interest in this area, I also have an R60. I have been waiting for development to start in this area before committing to a strategy.

Did you consider apartments? in theory you could build 7x 2x2 plus 1x 1x1 on your R60 site.
Click to expand...

I don't have the experience, so not comfortable building apartments at the moment and I also prefer to get in and out within 6 month build time frame. I think someone mentioned on SS you could be looking at 2 years with apartments.

I try to increase profits by having 3 developments per year on the go, easier to get finance, turn it over, move on to another project.

Though I think down the track I would be interested in apartments.

Will post plans shortly:)
 
Hi Marisa
On what criteria (besides price) do you judge a builder? this is something i have no experience at and wish to know how to choose a good builder.
 
OK thanks, my block is 750m2 and it's already zoned R40, my numbers are not as good as yours as I paid a bit more for the block, but spread that over three houses it isn't too bad, still looking at a minimum of 20% profit (creating equity) I think.

Obviously depends on the market etc.. but I'm buy and hold so the bank val is good for refinance but its not the end of the world. They will be neutral at least, so cross that bridge when I get to it.
 
IT Support posting plans for MTR

<because IT Support created the wrong type of files - ooops>
 

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