Hi all, just went through Brendon's diary and it's so inspiring. I have just purchased a potential site in Deer Park ( close to the train station), and decided to start my own diary as well. As the title suggests, this is my first project and even though I have done a lot of home work and gone through the numbers 100 times with my broker, I am sure I will need every bit of support i could get to go through this journey.
The site
The site is 700 sqm, backyard is facing south ( the two architects I spoke to both advised me that the orientation sort of limits the options I have, 1st lesson learnt). I paid $358000 for it, which I think isn't too bad considering the recent sales on the same street. The existing 3bed house is still in a reasonably good condition and the agents I spoke to told me it could be rented out for $320 pcw without too much work.
Plan
My original plan was to knock down the existing house and build 3 ( 3bed TH, 2 bed TH and 2bed single storey unit), however I was advised by one architect that it's not the most cost effective option. He recommended renovating the existing house and building another two single storey 2 bed units at the rear. This options is way less expensive as the construction cost would only be around $250,000 and the end value, based on the recent sales, would be around $870,000.
Site purchase cost (including stamp duty): $378,170
Planning permit: $6569 ( I just received the quote today )
Building permit: $9328
Subdivision: $9061
Open space levy: $18000
Construction of two units: $242,000
Renovation: $40,000
Holding cost: $20000
Sub total: $722,996
End value:
Existing unit: $270,000
Unit 1: $300,000
Unit 2: $300,000
Return: $147,004 (Gross Margin 20%)
The reason I highlighted the renovation bit is that the existing driveway is only 2.6 m! The architect told me that it could be widened and it's still worth keeping it given it's condition and this option will be better than knocking it down and building 3. I haven't spoken to a builder about the renovation yet.
The cost for planning and building permits are less than what other people have shared here and I guess that's because i am only going for the single storey units.
I spoke to two architects. The first one just provided me with a quote without much consultation, it's like I would design whatever you want to build and charge accordingly. The second architect shot down my original idea as soon as he heard it.. lol I like how he thinks and might go with him in the end.
The house will settle on 09/02/2015 and I am trying to do as much as I could between now and then. My first priority is to find a good architect and then a good PM in the deer park/sunshine area to manage the existing house. Also, I am hoping to finish the renovation/alteration soon after the settlement.
So folks, that's all I could think for now.. Any suggestions, words of wisdom and constructive criticism will be greatly appreciated.
The site
The site is 700 sqm, backyard is facing south ( the two architects I spoke to both advised me that the orientation sort of limits the options I have, 1st lesson learnt). I paid $358000 for it, which I think isn't too bad considering the recent sales on the same street. The existing 3bed house is still in a reasonably good condition and the agents I spoke to told me it could be rented out for $320 pcw without too much work.
Plan
My original plan was to knock down the existing house and build 3 ( 3bed TH, 2 bed TH and 2bed single storey unit), however I was advised by one architect that it's not the most cost effective option. He recommended renovating the existing house and building another two single storey 2 bed units at the rear. This options is way less expensive as the construction cost would only be around $250,000 and the end value, based on the recent sales, would be around $870,000.
Site purchase cost (including stamp duty): $378,170
Planning permit: $6569 ( I just received the quote today )
Building permit: $9328
Subdivision: $9061
Open space levy: $18000
Construction of two units: $242,000
Renovation: $40,000
Holding cost: $20000
Sub total: $722,996
End value:
Existing unit: $270,000
Unit 1: $300,000
Unit 2: $300,000
Return: $147,004 (Gross Margin 20%)
The reason I highlighted the renovation bit is that the existing driveway is only 2.6 m! The architect told me that it could be widened and it's still worth keeping it given it's condition and this option will be better than knocking it down and building 3. I haven't spoken to a builder about the renovation yet.
The cost for planning and building permits are less than what other people have shared here and I guess that's because i am only going for the single storey units.
I spoke to two architects. The first one just provided me with a quote without much consultation, it's like I would design whatever you want to build and charge accordingly. The second architect shot down my original idea as soon as he heard it.. lol I like how he thinks and might go with him in the end.
The house will settle on 09/02/2015 and I am trying to do as much as I could between now and then. My first priority is to find a good architect and then a good PM in the deer park/sunshine area to manage the existing house. Also, I am hoping to finish the renovation/alteration soon after the settlement.
So folks, that's all I could think for now.. Any suggestions, words of wisdom and constructive criticism will be greatly appreciated.
Last edited: