After years of inspiration, self-education and research, we're getting closer to our 1st development. We'd love comments, tips, and guidance please.
Here’s the deal so far.
Building a dual occ (2 villas) on a 670sqm block of land in Central-North Coast NSW
Two of 3 beds, 2 baths, and double garage villas
Selling prices are more than $500k each = $1m (we’ll be conservative here).
Expenses:
Land = $285k - $290k (depending on the seller agreeing to delay settlement and giving us access to remove/relocate the current 1 bed cottage before settlement)
Construction cost, incl. project management (quoted) = $390k (about 160sqm per villa incl. double garage)
Purchasing cost = $2k (just solicitor fee, no SD as we’ll get rid of the cottage and settle as a vacant land)
Selling fees = about $30k (for both villas unless we decide to sell them ourselves)
Interest on land + construction loan = about $35k (for 10 months period)
Council contribution = $27k
______________________________
Total = $769k
Contingency 5% = $38.5k
___________________________
Total cost = $807.5k
Project manger has quoted $1200/sqm for pre-fab homes. This includes all consultants fees, council application fees, builders fees, and his 6% project management fees. Has anyone utilised a project manger in Central-North Coast NSW? How does this sound? We’re building two of 3 beds, 2 baths, double garage villas.
Those are the rough calculations at this stage and we think it’s worthwhile sinking out teeth into this deal. We’ll hit the brick wall at after DA approval and at construction stage, when we’ll have to look for a JV partner(s) for construction loan deposit and/or to sell these villas off-the-plan for financing purposes.
Any advice is appreciated guys. We’re scared and excited, but figured the best way to learn is to research, research, research and jump right in!
Here’s the deal so far.
Building a dual occ (2 villas) on a 670sqm block of land in Central-North Coast NSW
Two of 3 beds, 2 baths, and double garage villas
Selling prices are more than $500k each = $1m (we’ll be conservative here).
Expenses:
Land = $285k - $290k (depending on the seller agreeing to delay settlement and giving us access to remove/relocate the current 1 bed cottage before settlement)
Construction cost, incl. project management (quoted) = $390k (about 160sqm per villa incl. double garage)
Purchasing cost = $2k (just solicitor fee, no SD as we’ll get rid of the cottage and settle as a vacant land)
Selling fees = about $30k (for both villas unless we decide to sell them ourselves)
Interest on land + construction loan = about $35k (for 10 months period)
Council contribution = $27k
______________________________
Total = $769k
Contingency 5% = $38.5k
___________________________
Total cost = $807.5k
Project manger has quoted $1200/sqm for pre-fab homes. This includes all consultants fees, council application fees, builders fees, and his 6% project management fees. Has anyone utilised a project manger in Central-North Coast NSW? How does this sound? We’re building two of 3 beds, 2 baths, double garage villas.
Those are the rough calculations at this stage and we think it’s worthwhile sinking out teeth into this deal. We’ll hit the brick wall at after DA approval and at construction stage, when we’ll have to look for a JV partner(s) for construction loan deposit and/or to sell these villas off-the-plan for financing purposes.
Any advice is appreciated guys. We’re scared and excited, but figured the best way to learn is to research, research, research and jump right in!