I am just running a few ideas atm. Would like advice and any comments about the feasability of this idea.
my idea is: to develop a set of townhouses on my block and my neighbours block.
block: 14mx 85m x 2 , able to build around 10 townhouses
area: fairfield, sydney - there are many townhouses//flats in the area and nearby streets.
costs: land is currently around $450k each , ie $900 total
building costs $120 k per townhouse (is this a reasonable
quote?) = 1200 k
other costs: 50000k ( to demolish preexisting houses and selling
costs)
total cost: 1200k + 900k + 50 = 2150 k
market value once built: 10 x $300k = $3000 k
profit: 3000 - 2150 = $850k.
I am just running this idea in my head. Is it reasonable? should i persue it further?
- it is subject to council approval, building costs for townhouses may be higher,
- finances: someone quoted a lender was willing to lend 70% of market value ie 3000k x 70% = $2100 k, which is enough to cover the total cost to build the townhouses ( also as i am developing on my block, there is only $150 k left on the mortgage)
A builder is coming to have a look at the block and I will keep u guys updated. Any comments from any builders or from ppl who have done something like this b4??? thanks heaps
my idea is: to develop a set of townhouses on my block and my neighbours block.
block: 14mx 85m x 2 , able to build around 10 townhouses
area: fairfield, sydney - there are many townhouses//flats in the area and nearby streets.
costs: land is currently around $450k each , ie $900 total
building costs $120 k per townhouse (is this a reasonable
quote?) = 1200 k
other costs: 50000k ( to demolish preexisting houses and selling
costs)
total cost: 1200k + 900k + 50 = 2150 k
market value once built: 10 x $300k = $3000 k
profit: 3000 - 2150 = $850k.
I am just running this idea in my head. Is it reasonable? should i persue it further?
- it is subject to council approval, building costs for townhouses may be higher,
- finances: someone quoted a lender was willing to lend 70% of market value ie 3000k x 70% = $2100 k, which is enough to cover the total cost to build the townhouses ( also as i am developing on my block, there is only $150 k left on the mortgage)
A builder is coming to have a look at the block and I will keep u guys updated. Any comments from any builders or from ppl who have done something like this b4??? thanks heaps