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…[Read more]

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. 

You can suggest 2.2% + 10-20% for any amount beyond the reserve.

If you wish to build a house, townhouses or units, the first and most important issue is that the property is within a Residential 1 Zone (R1Z) as this is the primary zone for residential uses.

Most R1Zs also have overlays that provide further details on how the land may and may not be used.

Terry, is this some sort of third party equity?

The difficulty in this type of equation is a the cost/effect. Building is one part of that equation, and certainly an important one. I'll preface what I am about to say by letting you know I am not an architect, but I do work with architects.

Firstly, if the concepts aren't right then the project may be off-track from the start. For most proposed…[Read more]

It's possible to build a second dwelling on an allotment, and not subdivide the land. Be aware however, that most municipalities will rate both properties anyway, especially if the services are connected and/or metered separately.

In Victoria a "granny flat" is to be constructed only for the purposes of housing a dependent person. There are rules…[Read more]

I have seen several of our clients add some momentum by doing dual occupancy developments. It's not necessarily at the glamorous end of the property spectrum, but it is often lucrative and has some peripheral benefits.

In terms of financing, there is the benefit of an "inherent asset", that of the existing house. If purchase is made of a property…[Read more]

The only issue I see with a money back guarantee is the possibility that they may choose the "quickest way home" rather than getting the most they can out of the land available. Commercially speaking, if I was to offer a money back guarantee I would need to consider the surest outcome rather than the best outcome.

And a hello to DWolfe. I am just…[Read more]

It seems to be an issue of semantics. What you are talking about is building an additional dwelling of modest size and finish. A dwelling of say 75m2 is adequate for a modest 2br dwelling, and at a construction rate of say $1,500/m2 with planning and design costs on top of that, you can establish a budget fairly simply.

75m2 x $1,500 =…[Read more]

The only sure way is to buy all four. Any other plan is a little "hit and hope".You can approach the local council about any notion you may have of redeveloping the block and they will be able to give you some zoning advice and maybe some advice around council's strategic objectives.

We have clients making their own apartments and town-houses in St Kilda West, and it seems well worthwhile. Land is expensive, planning and heritage issues are a pain, but the end values are impressive.

The historical benchmark builder's margin adopted by insurers is 16% gross margin, which id probably pretty close to the mark. This margin is built into the builder's pricing and is generally not expressed explicitly.This margin is, of course, nothing to do with the developer's margin which is generally targeted at 30%.So, if you as the developer…[Read more]

Sounds like a great spot.

Perhaps you should consider building two buildings, rather than one. If the land will accommodate this it will almost certainly be more profitable. It may also be less risky as you will be hitting a lower price point.

 A change of use application – as you are proposing – brings with it a fairly high level of scrutiny. Council will be anxious to understand the underlying demand for your proposed use and tha impact on your neighbours, before they will consider the level of detail you are asking about.So, firstly go and see your local council and talk to them…[Read more]

Jim,Regardless of the planning device, there are often ways to improve the yield (or otherwise improve the outcome) by working with the municipal authorities to come up with a solution that makes the proposal commercially viable and provides a positive outcome for the council at the same time.

Zem,I regularly assess properties for clients before they purchase. I also find properties for clients that fit their investment and development parameters. Here's some of the things we look for, and look out for:The property zoningThe state and municipal planning schemesLocal and general overlaysCovenants or caveats on titleProximity to services…[Read more]

Jim,You could also consider increasing the density and yield by using a "design led" application for development and subdivision. This costs a little more in planning but will almost certainly be more profitable.What it means is that you need to put some work into describing how the land will be used. This might be as simple as nominated building…[Read more]

KeyStrategies wrote:

christianb wrote:
The smallest lot we are working on is a proposal for 15 dwellings on 120m2 in the CBD.We are also working on a two lot subdivision on 240m2 in the inner suburbs.

Christian'What city are you working in?  – these are really small sites

In Melbourne.The same goes for other states and territories.And it's…[Read more]