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oc1
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October 28, 2014 - 9:21 pm
Wiwin, i would contact Jamie (above) if you want to get yourself a good broker. Very knowledgeable and reliable.
Oscar
oc1
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October 2, 2014 - 11:41 am
Guys, no need to feed the troll. I’ve replied on another thread :)
https://www.propertyinvesting.com/topic/4409043-3-unit-development-in-epping-vic/page/3/#post-4995157
oc1
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October 2, 2014 - 11:39 am
Guys ignore the troll. He’s my dedicated online hater :) He has been banned from the Somersoft forum and probably from here soon too, logs under different usernames.
Anyway, I actually posted the end results on Somersoft but forgot to put it up here. All three sold, average price just under $250k. Was it one of my better deals? Of course not. Bought it with the permits in place so this was a fairly simple exercise for a 6 digit profit – just build and sell (selling took a while for the last one). Funny thing is my clients replicated the same project and are doing better than I did by selling into a stronger market.
By the way, the other development, the 4 unit site in Ringwood, absolute cracker!
Cheers
Oscar
oc1
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September 14, 2014 - 7:35 pm
There’s one thing you can’t have and that is a guarantee when it comes to town planning permits. You would probably need to under-develop the site to assure? a positive outcome. Even then there are many variables out of your control.
oc1
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September 14, 2014 - 7:31 pm
We CAN make money off a dual occ you know…..so no, these areas are not out of bounds.
oc1
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August 5, 2014 - 2:16 pm
Thanks guys.
@ AC. My loans are mainly commercial loans and get through eventually with rents, development profits and consulting income. I go direct to banks as well as using a good broker.
@ Stefan, Thanks. Yes I do offer that service.
@ Matt, Cheers. I still prefer to borrow as much as possible for each development as you can keep some powder dry and have multiple developments at the one time.
oc1
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July 17, 2014 - 10:29 pm
Now that everything has settled, here are the final numbers:
Interest costs an extra $5k
Building costs an extra $20k, mainly due to site costs and higher quality specs.
Total costs $1.38m
End values came in higher. The two units I sold during frame stage would e worth another $30-40k now.
Total sales price of 2 units sold at the time: $824k
Total value of units kept: $1.1m
The profit margin is around 40% and a pretty good dollar profit. Total rent on the kept units are $870pw gross. Nice
Last month I found another one in the suburb nearby to replicate the same thing. The big blocks are hard to come by.
Any questions, just shoot.
Oscar
oc1
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March 21, 2014 - 10:19 am
If you can handle the pressure of developing and prepared to wait the 18 months for the payoff then developing may be the way to go. Have a chat with council and see how the new zones will affect your property. You may end up with a block which restricts you or allows high density.
Oscar
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March 21, 2014 - 10:14 am
This model seems flawed to me. You may end up with a town planning permit which doesn't utilise your block to its highest and best use as there is no incentive to push the boundaries.
Oscar
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January 30, 2014 - 6:07 am
Nearly finished now. A few photo's are attached. Carpet, floorboards and landscaping are the main items left now. so by mid Feb all will be completed, including the subdivision.
Cheers
Oscar<img alt="" border="0" height="496" id="lightboximg0" src="http://somersoft.com/forums/attachment.php?attachmentid=11754&d=1391061883" style="border:solid 4px black;border-bottom-width:0px;" title="driveway 1.jpg;
951 x 713 (@70%)” width=”662″ />
<img alt="" border="0" height="496" id="lightboximg1" src="http://somersoft.com/forums/attachment.php?attachmentid=11755&d=1391061915" style="border:solid 4px black;border-bottom-width:0px;" title="driveway 2.jpg;
1100 x 825 (@61%)” width=”662″ />
<img alt="" border="0" height="496" id="lightboximg2" src="http://somersoft.com/forums/attachment.php?attachmentid=11756&d=1391061934" style="border:solid 4px black;border-bottom-width:0px;" title="kitchen.jpg;
1501 x 1126 (@45%)” width=”662″ />
oc1
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January 24, 2014 - 11:13 pm
Hi MC78
Good questions and the answers are very long and do change for different areas.
Purchasing a property advertised with the phrase STCA is not a guaranteed development site. I see properties without these words to which are development sites. You need to work out for yourself what is and what isn't a good site to develop.
Council's won't give you any answers until you actually submit the application. But you can start the process during the settlement period. With Knxo City Council it will take up to 6 months.
The areas you have mentioned are are fine but you have a lot of homework to do before you should consider buying.
Oscar
oc1
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January 6, 2014 - 9:27 am
Generally YOU would need to fund the construction yourself. So a nice chunky LOC would come in handy here.
oc1
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January 6, 2014 - 9:23 am
Going very well. Sold what i needed to sell and keeping the others.
Should be all finished by the end of the month. Will post up photos soon.
oc1
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January 6, 2014 - 9:21 am
50% above your interest rate is a good start.
Oscar
oc1
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November 12, 2013 - 5:52 am
I'd call Jamie here for more info, especially if you're uncomfortable divulging more info here.
Oscar
oc1
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October 8, 2013 - 9:33 pm
Hey Chops, each area has their own rules which go a long way to dictate how many you can get on the block. Sometimes it is council imposed, other times it's what the market wants. In this case 4 was ideal.
I'm a fan of selling either before or during a build. However, you tend to get a bit more after they are finished.
Oscar
oc1
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October 8, 2013 - 9:28 pm
Gav
The other part of this equation is to know your market i.e.
* what type of dwelling is in demand,
* what size these dwellings need to be,
* the type of finish,
* how many can fit on the block,
* how large does the block need to be,
* the resale values of the new dwellings etc etc.
Unfortunately no development calculator is going to give you that. Once you have the above info you can determine the other costs with a bit of research and plug it into an excel spreadsheet. It's not easy but not that hard either.
Oscar
oc1
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October 1, 2013 - 11:59 pm
September has been wet alright! The constant rain and the recent wild winds have really slowed down building; especially when the next two trades are your roof plumber and renderer
Still, all the brickwork is now finished. Pretty good job too. The front unit also had the dutch gable completed, which looks nice. I love dutch gables!
The lower level roof tiles are on site as well ready to go.
Oscar<img alt="" border="0" height="496" id="lightboximg0" src="http://somersoft.com/forums/attachment.php?attachmentid=11200&d=1380671803" style="border:solid 4px black;border-bottom-width:0px;" title="brickwork finished and dutch gable.jpg;
1016 x 762 (@66%)” width=”662″ />
<img alt="" border="0" height="496" id="lightboximg1" src="http://somersoft.com/forums/attachment.php?attachmentid=11201&d=1380671822" style="border:solid 4px black;border-bottom-width:0px;" title="brickwork finished.jpg;
973 x 730 (@69%)” width=”662″ />
oc1
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September 19, 2013 - 7:08 am
Thanks guys, appreciate the kind words.
Been a while since the last update. The framer was back to finish off all the frame work. I love the dutch gables! Adds some charm.
All the upper level roof tiles are now completed as well as the fascia and gutter. The upper level eaves sheets are now in place as well. While the outside work was getting done the internal lockup got done and the plumbers and sparky did their rough in.
The bricky is back on site today. He should be close to finishing by Tuesday next week.
I'm looking forward to the render starting in about 7-10 days. Will be at lock up soon after when the lower level roof tiles and fascia/gutters are in place. Once this is done i can then get the trenches dug up in the driveway in preparation for the services and water (can be a real headache!). After that it's the staircases and the plaster.
Cheers
Oscar<img alt="" border="0" height="496" id="lightboximg15" src="http://somersoft.com/forums/attachment.php?attachmentid=11159&d=1379573214" style="border:solid 4px black;border-bottom-width:0px;" title="photo 1.jpg;
1064 x 798 (@63%)” width=”662″ />
<img alt="" border="0" height="496" id="lightboximg16" src="http://somersoft.com/forums/attachment.php?attachmentid=11160&d=1379573237" style="border:solid 4px black;border-bottom-width:0px;" title="photo 2.jpg;
1005 x 754 (@66%)” width=”662″ />
<img alt="" border="0" height="496" id="lightboximg17" src="http://somersoft.com/forums/attachment.php?attachmentid=11161&d=1379573257" style="border:solid 4px black;border-bottom-width:0px;" title="photo 3.jpg;
960 x 720 (@69%)” width=”662″ />
<img alt="" border="0" height="496" id="lightboximg18" src="http://somersoft.com/forums/attachment.php?attachmentid=11162&d=1379573296" style="border:solid 4px black;border-bottom-width:0px;" title="photo 4.jpg;
1035 x 776 (@64%)” width=”662″ />
oc1
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August 28, 2013 - 10:03 pm
One thing you would do is pick a suburb and look at the developments for sale, say on re.com.au. Try and then determine how big the blocks are for those developments. So, for example you could look at Suburb A which has a few developments for sale. Punch in the street address in google and click the link for onthehouse.com.au. This will tell you how big the block is (generally accurate).Then go back to your searches and look for property on a similar land content. Do the checks for zonings, overlays etc. If there are no/minimal restrictions you may have found something.
Also, better located land in a suburb generally makes it easier to sell.
Hope this helps.
Oscar