Yes!! We got unconditional approval! 4 villa development in Gwelup WA

Finally managed to get unconditional approval today for a block we put an offer on WAY back 1st July. We've had 3 finance clause extensions and sacked one broker but now finally my very very patient vendors and I can move on to settlement.

I will bore you silly with designs and photos and progress.

I'll be back soon with more details, I need to go harvest a kidney from one of the kids and give it to to the bank.
 
I look forward to seeing the progress. Congratulations! I think it took the banks a while to realise Perth is on the upswing. :rolleyes:
 
Gwelup is a nice area, looking forward to development thread. Most post development threads in this section of the forum eg adding value.

Regards
Sheryn
 
......and so the thread begins :)

Important details:

Gwelup WA: lovely little suburb about 11km north of the CBD, 5km to the beach, 1km to major shopping centres (Karrinyup and Innaloo). Part of the City of Stirling http://www.stirling.wa.gov.au/About-the-city/Suburbs/Pages/Gwelup.aspx

Location: http://maps.google.com.au/maps?q=12+agnew+loop&ll=-31.863617,115.7999&spn=0.00451,0.009173&client=safari&oe=UTF-8&hnear=12+Agnew+Loop,+Gwelup+Western+Australia+6018&gl=au&t=h&z=17

Block: Zoned R30 1224sqm diamond shape. Approx 90% of Gwelup is R20 so it is mainly single dwelling blocks. This block was part of an estate built in the '90s and was zoned R20. At some stage it was changed to R30 but has never been built on. It has been on the market for about a year and I've been watching it drop in price and was astounded that no one was buying it. We were in the middle of doing a 3 villa/triplex in Westminster so it wasn't the right time for us. But it was still available when it finished and dropped in price more :)

Much of the land in Gwelup is selling at $1000 plus per sqm, I picked this up for just under $700 sqm http://www.realestate.com.au/buy/in-gwelup%2c+wa+6018/list-1

R30 is 300sqm minimum lots, 55% site/building coverage with 24sqm dedicated outdoor living (accessible from a habitable room).

The land also has a covenant from it's '90s developers with some dated colour schemes but also a minimum house size of 150 sqm (not including garage!). This is tough but *just* doable. There might be some creative accounting :)

Building Project:
4 x very house like single storey villas. Each will have 4 bedrooms, 2 bathrooms, study or Theatre and a double garage. There will be an alfresco and garden area.

Plan: build and rent out. Current rental estimate by local PM is $650 per week each. Estimated value of them at today's values $6-650k.

Finances: Loan from Heritage Bank under residential rates. Land on fixed 5.83% construction on variable 6.13%
 
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Great work. Strata titled or individually titled lots?

Love the sound of the financing. Surprised they will allow residential for that kind of cost. Do you know the number of units they cut off at for resi?
 
Much of the land in Gwelup is selling at $1000 plus per sqm, I picked this up for just under $700 sqm

My, how land does grow over time.

The father and I used to own the Gwelup newspaper deliver round...that was in 1989. I'd be driving around the streets at 3am every night delivering the West.

Number 3 Porter Rd was for sale at the time, an old 1950's house on 5 acres (20,000sqm) for $ 250K.

That's $ 12.50 per sqm of land.

What fools we both were. If we had of stopped running around like chooks with our heads cut off, and simply bought the old house on 5 acres and let it sit, that 5 acres would be worth 2m bucks today.

Those old Greek and Italian fellows out there sure do know how to grow expensive cabbages and lettuces don't they !!

Good luck with your venture.
 
Great work. Strata titled or individually titled lots?

Love the sound of the financing. Surprised they will allow residential for that kind of cost. Do you know the number of units they cut off at for resi?

Strata at the end so built strata. It means we can the project off the line a lot quicker.

4 is the limit for Heritage to be on residential rates. The shortlist for banks who would do 4 at residential rates was....well short :)

I'm stoked we got residential rates.

We are now debt squillionaires which freaks me out but the sums make sense to me and DH is very good at going "if you're sure and have done the sums where do I sign"
 
Dazz: yup it's some very expensive swamp land now. Practically no market gardens left anymore. All the horses are gone too - the trotting track on North Beach Rd went about 4yrs ago and is now houses. The school has been rebuilt and quite a lot of over 55s have been built.
 
Congrats westminster!! We actually live in Gwelup, it is a great little spot. We love it here. You'll have to PM me the address - I'll be able to drive past and keep an eye on things for you ;)
 
Wow that's a really good deal!!! too be honest didn't know heritage would consider 4 villa in this location under res.

Nice.

once completed, a little Nice rental cash flow as well .. :)
 
Congrats on going unconditional :) Sounds like Heritage will have to be my list as I am looking at 3-4 also.

I will be watching your thread eagerly to watch your progress and gain some insight
 
Congrats westminster!! We actually live in Gwelup, it is a great little spot. We love it here. You'll have to PM me the address - I'll be able to drive past and keep an eye on things for you ;)

Thanks Jen. It's an area we know well which helps with the decision.

Wow that's a really good deal!!! too be honest didn't know heritage would consider 4 villa in this location under res.

Nice.

once completed, a little Nice rental cash flow as well .. :)

Depending on how rents go and how interest rates go the rents might cover the loan. With today's rates for both the shortfall will be about $100 plus of course management fees/rates/insurance which will make the shortfall greater.

Congrats on going unconditional :) Sounds like Heritage will have to be my list as I am looking at 3-4 also.

I will be watching your thread eagerly to watch your progress and gain some insight

I will try and be as transparent as I can so everyone can follow it easily.
 
Nice one, who are using to build ?

Chomp

Chomp, our builder is Inspired Homes. I used them on my last build and I was very happy with them. They are a smallish builder but I like that - I like that there isn't a million layers to go through to talk to the person who makes decision. I deal with him directly and I can call him on his mobile about anything.

Here is 2 that we built this year.
 

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Chomp, our builder is Inspired Homes. I used them on my last build and I was very happy with them. They are a smallish builder but I like that - I like that there isn't a million layers to go through to talk to the person who makes decision. I deal with him directly and I can call him on his mobile about anything.

Here is 2 that we built this year.

Looks nice, how much to build each turnkey?
 
nice find, and nice block.

Sounds like you have had previous project/s?

How did they go. Any chance of sharing the rough numbers?
 
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