Hi Guys,
We've just settled on our new PPOR development site in Bardon, Brisbane. Its a 427m2 small lot which was recently subdivided from an existing dual lot with an old house straddling both lots. They've knocked the old house down and sold one lot to us and got a DA through for a new house on their remaining lot.
Bardon is a hilly area of Brisbane about 4km from the CBD and near Paddington. It is an established suburb with older houses and a high median price. Lots of parks and good schools.
Our site is a sloping site which falls away from the street to a public reserve park at the back which is pretty much only used by the residents which back onto it from both sides. It is a waterway which runs down to a creek in an adjoining street.
Here's some photos:
From the public reserve at the back looking up at our block:
A shot of the public reserve:
Got to love all that grass at the back on someone else's mowing bill!!
And finally, a shot of the DA plans that we have since modified for final submission to council. They're in at present under assessment:
Its a 5 bedroom, 3 bathroom house over three levels. We intend to sublet the bottom level out which would be a standalone 1 bed 1 bath unit with separate access. We will live in the top two levels which would then be 4 bed, 2 bathroom. Our master bedroom has a big WIR and ensuite. We're really looking forward to a nice big spa bath in the ensuite so we can sip champagne in the bubbles after a hard days work.
Of which we anticipate a few. We've decided to do it as an owner builder. So, Kay and I are off to do our Owner Builder course in October. I work at OneSteel and I can get all the flooring system as a steel kit using our Duragal Flooring System (DFS) product range. Here's a link to the DFS products:
http://metaland.com.au/duragal/duragal_flooring_system.php
I get all the steel at a little over cost price which includes all of the connection fabricated components. I also get all my rural steel at cost so have just put up a starpicket and wire temporary boundary fence around the entire property for $400. Took me two weekends, but its done now.
We needed the fence as we have two beautiful Border Collies and we plan on living on the site while we do the owner builder. We just bought a new van and will be putting it right down the back near that public reserve this weekend. That way we're well out of the building envelope. If you're into vans then here's the cheapie we bought to live in for 12 months or so:
http://www.tradingpost.com.au/Automotive/Caravans/AdNumber=TP004782531?AdOnTop
So that's it in a nutshell. We're still only half way through our big Mona Vale multi-unit development which is taking longer than it should, but we're keen to move forward with our next PPOR. The bank came to the party as the interest servicing on the site is the same as the rent foregone when we move out. It will be a tough grind for the next 6 months or so until Mona Vale is finished and let, but after that our cash flow will improve significantly.
Nothing good ever came easy!
For those into numbers...
The site cost $370K, the build should come in under $230K for a total of under $600K. The QLD state government will give me $10K for my efforts too under the new grant. It should value at completion at minimum $850K.
Or, we let the whole thing out at completion and generate $250pw for the 1bed unit and $550pw for the 4 bed house for $800pw for a yield of about 7%. That's mega conservative. It could easily rent for $1,000pw in the right environment but I'm a conservative fellow.
Cheers,
Michael
We've just settled on our new PPOR development site in Bardon, Brisbane. Its a 427m2 small lot which was recently subdivided from an existing dual lot with an old house straddling both lots. They've knocked the old house down and sold one lot to us and got a DA through for a new house on their remaining lot.
Bardon is a hilly area of Brisbane about 4km from the CBD and near Paddington. It is an established suburb with older houses and a high median price. Lots of parks and good schools.
Our site is a sloping site which falls away from the street to a public reserve park at the back which is pretty much only used by the residents which back onto it from both sides. It is a waterway which runs down to a creek in an adjoining street.
Here's some photos:
From the public reserve at the back looking up at our block:
A shot of the public reserve:
Got to love all that grass at the back on someone else's mowing bill!!
And finally, a shot of the DA plans that we have since modified for final submission to council. They're in at present under assessment:
Its a 5 bedroom, 3 bathroom house over three levels. We intend to sublet the bottom level out which would be a standalone 1 bed 1 bath unit with separate access. We will live in the top two levels which would then be 4 bed, 2 bathroom. Our master bedroom has a big WIR and ensuite. We're really looking forward to a nice big spa bath in the ensuite so we can sip champagne in the bubbles after a hard days work.
Of which we anticipate a few. We've decided to do it as an owner builder. So, Kay and I are off to do our Owner Builder course in October. I work at OneSteel and I can get all the flooring system as a steel kit using our Duragal Flooring System (DFS) product range. Here's a link to the DFS products:
http://metaland.com.au/duragal/duragal_flooring_system.php
I get all the steel at a little over cost price which includes all of the connection fabricated components. I also get all my rural steel at cost so have just put up a starpicket and wire temporary boundary fence around the entire property for $400. Took me two weekends, but its done now.
We needed the fence as we have two beautiful Border Collies and we plan on living on the site while we do the owner builder. We just bought a new van and will be putting it right down the back near that public reserve this weekend. That way we're well out of the building envelope. If you're into vans then here's the cheapie we bought to live in for 12 months or so:
http://www.tradingpost.com.au/Automotive/Caravans/AdNumber=TP004782531?AdOnTop
So that's it in a nutshell. We're still only half way through our big Mona Vale multi-unit development which is taking longer than it should, but we're keen to move forward with our next PPOR. The bank came to the party as the interest servicing on the site is the same as the rent foregone when we move out. It will be a tough grind for the next 6 months or so until Mona Vale is finished and let, but after that our cash flow will improve significantly.
Nothing good ever came easy!
For those into numbers...
The site cost $370K, the build should come in under $230K for a total of under $600K. The QLD state government will give me $10K for my efforts too under the new grant. It should value at completion at minimum $850K.
Or, we let the whole thing out at completion and generate $250pw for the 1bed unit and $550pw for the 4 bed house for $800pw for a yield of about 7%. That's mega conservative. It could easily rent for $1,000pw in the right environment but I'm a conservative fellow.
Cheers,
Michael
