Hi all
I have been looking around this site for current 2012 building cost per s/m for 2 townhouses in S/e Melbourne- around 240m2 each. CAn anyone recommend a detailed construction cost calculator I have come across a few and the prices varies considerably.
I am looking at a 600m2 area site with an existing dwelling, The plan would be to knock and replace with 2 t-houses, there are no overlays on the site and quite a few properties around it have been subdivide.
Any other advise on a project like this would be much appreciated..eg what else should i be looking out for.
Cheers
That's an incredibly broad question – are you factoring site costs as part of construction? Do you want double brick? Brick veneer? What finishes are we talking about, i.e. carpet or ironbark timber floor boards? What is the sqm of the town houses? will they be built at the same time? Also do you have DA/CC yet?
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
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Yes –
Call a few local builders and ask for a cost estimation on what it costs to build a townhouse. Do not ask for a quote as builders are busy people just ask for a ball park figure for feasibility for a development project
(the helpfulness of the builder may help decide who you may use for the project)
Also drive / look around the suburb and take a note of the builders doing similar townhouse construction)
You need a surveyor – cost this also
A private town planner may be a useful person to employ
You need to know the head costs – council charge on each subdivision for infrastructure
you need to know the Development Application Costs
You need to know the Building Permit costs
You need to know the civil costs – Power, sewerage and water to be installed
Costs of Driveways, garden / landscaping
also a allowance is needed for cost overrun on your project
Cost of demolition (you may be able to sell the old house for removal instead)
Cost of a demolition permit – probably $55 but you need one before knocking down a house
At this stage I am only trying to do a feasibility report, I would be looking at a high standard finish, so as to carpet or ironbark flooring I am not getting into that much detail just yet. @240s/m for each townhouse inc garage. And yes they will be built at the same time. DA/CC ?? That is … although I work in construction its commercial…Can you shed some light on the Victoria reformed zones when do they come into place, currently the property I am looking at is on RZ1
As I mentioned above I am involved in commercial side of construction, my background was in drafting after getting a degree in Construction. So I would be hoping to do the planning part myself every cent saved and all that, and most townhouses are 95% the same so I would be confident to do the drafting. You say a private town planner, would this be a better option considering it is would be my first time doing planning drawings for such a development…I do have a few architect friends who would lead me in the right direction if I had any issues…I have applied to do a Project management course with the master builders of Victoria and I am looking into a few other courses they run….I would Project manage the development.
I have researched all the subdivision costs surveying costs etc Its mainly the build cost that is providing hard to finalise.
It looks from looking around Anything from $1500-$2000 p s/m. Again I don’t know if this figure includes all site works like sewage, landscaping etc or would that figure only be for the house. I will try to speak to a builder and get some feedback.
As you can tell a lot of this is new to me so all the info is much appreciated, I am in a position to buy if I wanted now, but I think I need to research research research over the coming months and be confident with the ends and outs of every aspect. I really have a passion for a project like this, it’s something that really appeals to me… but there is no point in me being over eager and committing to a project without knowing everything there is to know.
Ideally working for a similar established developer would be great for a few years. Can anyone recommend courses that can answer all my questions or where could I get all the info I need to know…
Thanks in advance
Expect to pay at the very least $1,500/m2 + peripheral costs for landscaping and the like.
Get good advice early so you make the best decisions for the least amount of money.
Put some work into getting the sizes and density right. A disciplined 150m2 is every bit as useful as a lazy 240m2.
G'day Ash and everyone,
Ash, your comment about slowing/stopping subdivision in the inner ring of suburbs is a bit off the mark, the proposed zone known as the Residential Growth Zone is the one that will be applied broadly in the inner suburbs, close to Activity Centres, train stations and other areas suitable for increased housing activity.
We can expect a higher density of development in the inner suburbs (notwithstanding the protections given to Heritage precincts), with a mixture of townhouses and apartments with underground car parking. These new developments will generally be around three storeys in height.
Have a look at this link for more.
I am only correcting you Ash in order to allay the fears of those people who own properties or considering buying in these areas.
I certainly mean no offence in this comment, you're an excellent contributor on here and our land surveyor of choice.
The changes to the residential planning controls are the biggest reform to planning in over thirty years, and include three newly formed residential zones. The zones will result in stricter restrictions in residential areas that require urban preservation. Fewer restrictions, including higher building heights and more housing diversity (and density), are proposed in appropriate locations near activity centres.
Given its impact on how land may be developed, concerns have already been raised on how these changes may impact current and proposed building projects. However, considering the early stage of these planning scheme changes, it remains unclear what effects the amendments will have at specific properties, or even the timeframes in which they may be implemented.
The Planning Minister, Matthew Guy has stated that zoning boundaries will be at the discretion of local councils, ultimately determined by the community who will ‘inform which zone best fits where’. Whilst we're seeing a lot of announcements at the moment around a new Metro Strategy, the ground work for the implementation of the new zones is only just beginning.
We expect these new zones to be adopting in the next 12-18 months. As Ash states above, it's best to seek advice from a specialist in the early stages, even if it's just to get an Property Development Assessment and Due Diligence completed on your site to gain a clear understanding of your best way forward.
All the best,
Breece
Cheers Breece.
All good, I've only heard so much about the changes (and probably a few too many rumours too!)
Thanks for the correction, now I've learnt something new today!
Hi there,
DA refers to Development Approval. This is really just another way to describe the planning permit.
With the Zoning Reform in Victoria, I haven't heard of an exact date for this going through, (maybe anyone else here can shed some light on it?). Heaps of info can be found here: http://www.dpcd.vic.gov.au/planning/theplanningsystem/improving-the-system/new-zones-for-victoria
A private town planner would be a good idea for your first couple of developments, as they will be able to guide you through the process, liaise with council and organize any professionals that may be needed. I always recommend new developers engage private planners as it makes the process that much easier.
(Edited- see Breece's comments below for planning questions)
Cheers,
I briefly spoke to the council over the phone yesterday re the reformed zoning, he said that it was due to be implemented late this year but it has been moved to early next year.He said it is all pretty vague at the minute but that council will have the final say.
Christian b you say $1500 p/m2 is that a price that a builder will do it for, if i was to project manage it I guess you could expect to save 10-20% on that. If it would be $1500 with a builder for the house what would that cost be including all ground works-civils etc. Basically i am looking at what it will cost for the whole completion of site works and all.
What does the site look like? i.e. flat, slopped, soil, rock? how much excavation is required? etc. What type of house are you building? brick veneer, double brick, standard finishes, high end finishes, whats the sqm of each dwelling? what's the flooring?
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Can anyone recommend a good course in Residential Property Development , I have looked around the web and come across a few any information on this would be very much appreciated. Ideally something under 6 months. Also just purchased the Australian Residential Property Development book so I am looking forward to it coming through the mailbox.
Breece – really enjoyed looking through your web-site.
If you were to successfully project manage you can certainly save money.
If you don't get it right you can lose just as much.
Put your energy into establishing a good team to deliver your project.
The $1,500/m2 is a built form cost to which you should add and amount, say 10%, for site costs.
Built form costs will regularly exceed this amount but rarely come in under.
A good exercise to establish if a project is worthwhile is this:
Aim for 3/3.
1/3 = Land costs
1/3 = Development costs
1/3 = Gross margin
These guys build quite a few townhouses they will defiantly be able to help you.
http://www.rcorporation.com.au/
They have two townhouse projects in Melbourne at the moment. One in Cheltenham and one in Maidstone.
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