Forum Replies Created
Just about to do the same thing.
I went through my planner and had everything prepared in reference to fund etc etc.Basically I have alot of documents to sign and pay him a fee to set it all up.
I just need to produce the Cq and I,m done.Lending really isnt a big deal as I have a fair bit of equity
cheers JHey D Wheeler
At the moment your showing 20% equity in the property you own.
I gather your from the UK based on the dollars your showing.If this is the case I dont know the leading % over there based on deposit requied for Property..
If your looking at $63k for the new place it would be best to work of the 80/20 rule(20% deposit)
This being the case you would need about $13k plus buying costs.
You can use the equity as assurance in your current place if you have enough.
At the moment only having around 20% in your current house you have nothing to play with.
A bank may lend up to 85% val of existing meaning you could pull $6k out of th existing house, but that still isnt enough.On the risk and shortfalls"""
there isnt much if you have good knowledge in what you are buying.
Its all about reseach and knowledge to ensure you cover everything.
cheers JHey Ms Trump
The million dollar question.
To answer this one quick I would go with a designer so they can designer the buildings to suit the block.You will still have to go through the planning process first which will involve consulting a civil Eng in some cases to
complete the boundaries. Then working with a Townplanner to get planning approval.
The designer will normally work with the townplanner to provide planning drawings so all planning is approved and then you step into the working drawing phase.
Once completed any builder will quote on the working drawings.
In any case you will still have the planning costs and if you approach most builders they will send you to thier designer anyway.
It will cost you about $15-20k to get to quoting stage
civil surveyor for site works $1200
townplanner $3-5,000
designer planning drawings $2,500
council costs $1-2,000
working drawings $5,000
titles office $700
energy report $500Hey Marty
The guys above are on the right track, but I think I should go to Joshua as he is abit cheaper then my planner and designer.There is a couple of things to consider around planning to start with , which include consulting with a planner to ensure you can actually build the townhouses. Then you get the designer involved to complete planning drawings so you get planning approval.
Once you have planning approval and believe me the few lines above seem easy, but it isnt alwasy the case. You would then move on to working drawings for builders to quote.
I have missed quite abit in between but some of the cost estimates would be
Land surveyor – $1200 to start with
Town planner – could be $5k I would need to look through my last subdivision
planning drawings – $2500
council costs – $1-2,000
landscape design $600
working drawings $5000
energy report $600
land titles office $700If I remember my last two lot subdivsion to the point of construction was $20-$25k
cheers
JasonHi Hulkster
Richard is on the right track in stating to see a broker, or bank you may be dealing with.If you had a line of credit the bank will lend the 20% for example against PPOR and it will be drawn up as a interest only
account you have access to.
The other 80% may be a land and construction loan to allow for the payments as the building is constructed.You would need to purchase the land first and then complete a building contract for the exact value so the bank knows the end value of house and Land.
You have enough equity in the PPOR , so if you think you can build the townhouse for $180k which seems cheap depending on size then go for it.
You will realise when the bank /broker explains it to you it really isnt that hard, and you will wonder why you even stressed about it.cheers Jason
Hey Thek
Its a catch 22 situation when it comes to agents.
The standard commission for your area would be 3% for a house at $350-$375.
I have built a couple of homes in that area (The Basin/Croydon) and always find its better to pay for a good agent.
You really dont know what they can get for your house and if you do find that the sale is not going as well as expected you can
neg their commission to get the sale over the line.
ex: If you list and want $350, and they get an offer of $345, tell the agent I will except $345 if you drop your comm.
With the photos and internet that should be part of the comm price, but you will pay for magazine ads.
I wouldnt go with someone that offers advertising included, as the ads will be small and not in your best interest, but also dont
let an agent sell you too much advertising. For a $350 house I would expect $2k max on advertising.Go and see Adam Flynn , Barry Plant Boronia he is the best to deal with
[email protected]cheers
JasonHi Skuz
I have to agree with the others on a first time reno.
I have been completing renos and new properties for about 10 years now.
one of theCurrent projects is a subdivsion, including new townhouse next to a 100 yo victorian inner city melbourne which was a part demo, then a complete gut of the house.
Started from stud walls inside , restump, rewire,, plumb,plaster and everything else that goes with it.
The work I have just mentioned I wouldnt complete myself. I did strip the whole house, but there is some jobs you can
do and some you just shouldnt attempt.
following are things you would consider doing yourself like painting, flat pack kitchen as you mentioned, timber archs, skirting and things like that.
To give you an idea of cost, the original five rooms of the victorian were
– restump $11k
– wiring $2300
– plumb $ 2000 (this was to rough in a new bathroom and power room)
– plaster $13 K for original 5 rooms
– new fireplaces,windows, skirting etc etc etc
– new bathroom and power room in one of the old bedrooms $12 k ( this was me doing all the work beyond the replaster, so i did tiling and fitting vanties ,bath etc etc)So there is no change out of $50 k
Then the new extension which is large open plan kitchen,dining etc etc $150 K
So $200 are the costs then repayments and sales costs
So the question you have is
1) is the current floor plan suitable or do you need to extend?
If you need to extend and reno based on the current pictures of your house $200k
2) If you can reno the existing house, but need bathroom and kitchen $75- $100kremember this is you doing a fair bit.
I hope this helps
Hi Bespoke
As jeffj has mentioned there is always money to be made in buying and selling property "correctly".
To me it all comes back to the old word "research". Know you market and then you know when to jump.
Steve has mentioned a number of times in the past doing the sums on a project in five minutes (or something like that)
If you know the market well in the areas you are looking, five minutes will be enough to give you a good guide on a reno.
May be I,m making it sound alittle easy as I knock over a few renos each year, so your always learning.
example:
The current project I have is a large corner block in metro melbourne. Its actually 500 m from steves property investment office.
The project has been a reno and extension on the 100 yo house, subdivision and new townhouse next to it.
The project will be about 16 months in total as I work full time.
The investment is about $1.2 and the return is about 35 % based on the current market.
I suppose a single house reno without the option to develop will not pull a large return, but this doesnt mean
its not viable in your eyes.
You may feel a $50k return on a house reno is great, but i just prefer something alittle bigger.
To sum it up you have mentioned ( a decent Living) out of house renos.
Even with the projects I complete I still wouldnt throw my job away just yet.
You need a S*** load of equity to walk away from your day job. Both for general living and also finance from lenders.I hope this little bit helps
cheers
JasonHey macnatt
I,m about to have some demo work completed on a development next week.The house is an old victorian and a bad extension was built some years back. I have to restump the original house once the old extension is gone.
The cost by two different guys was around $6500 to complete the whole housecheers
JasonHi James
I think Anthony is right on the mark .
I have built with the mass builders (porter davis) twice for personal properties and the process was good and cost effective.
You would be paying around $8,000 with extras from them. You might find the pricing up front is around $6500 PSQ , but it will go up with site costs and extras. The last house was 34 SQ and it costs $240,000 with alot of extras and site costs.At the moment i have invested in an old victorian house in inner melb. It settles next month ,but i have already had surveys completed and the designer is working on plans as we speak.
Like you i will be building a townhouse ,next to the current house and subdiving (coner block).
Why i cant use a mass builder like before is you dont have the flexibilty.
I have budgeted around $10-12,000 per Sq for the reno ext and new townhouse.
If you shop around you should get something built for $10,000 but dont be surpised when quotes come back at $15,000.
its all about research
good luck with itHey Navy boy
Some interesting and very valid comments, i will put my two cents in.
Last weekend I brought a property for a development purpose.
Steves backyard Box Hill Sth.
The property was listed at a good price for the area, actually very good.
The house is located on a coner block and has an inground pool on the actual corner.
So the plan is to reno the old 1910 victorian house, split the block and build a towh house on the coner
where the pool is.
How this relates to your question is i had to sum up a number of things when it came to price.
1) it was a good price to start with, through an agent that is not well known and under priced the house.
2) there was a number of options and the worst case was just a reno if the council didnt approve plans(still a profit)
3) I have brought in a very hot area , but have to turn the the house over quick in the same market.Based on this i used my gut feeling and offered $1,800 above the asking to sweeten the deal, and also had the house checked
by my planning guy prior for the subdivsion.I was called that night to say someone offered $30k above my price,but had a number of conditions and clauses in the deal.
The owner selected my offer as there was no hassles, unconditional.Hope this helps
