Hi everyone,
This is my first post on this site. I found this great site just today.
It has a wealth of information that I have been looking for.
I have found a LMR zoned, 809m2 (20m front) block in Newmarket, Brisbane. It is just 4km from the city. There is a train station about 400m away and a bus to the city just 200m away.
It has an old house on it at the moment.
I am trying to do a feasibility study of doing a town house development.
This is my first project so very cautious. I would prefer doing the project with a JV partner.
Can you all tell me
1. What’s the townhouse marker in Newmarket like at the moment (new shopping and restaurant complex might be promising)
2. How many town houses can one of these 809m2 blocks hold ?
I have 1001 questions to ask all of you. I will start with the above.
Your feedback is very much appreciated.
Thanks in advance
Use the following as a guide;
You should be able to achieve 60% GFA being within 400m of a train station.
809m2 x 60% = 485m2 gross floor area
This does not include car parks/balconies
So depending on size, could fit approx:
4 x 3 bed @ 100m2 living space &
1 x 2bed @ 85m2 living space.As you said Newmarket has “The Newmarket” being developed at present which will do wonders for the suburb, so close to the CBD, train and QUT Kelvin Grove campus amongst other things.
For a guide on price just check out realestate.com.au and get an idea for what the asking price is for a similar townhouse as a guide.
Hope this helps, Id suggest you meet with a local town planner to confirm the GFA and yield of the site.
Remember to check things such as zoning, services (water, sewerage), flood report if applicable etc etc
Matt
Hi Stuzzy,
Am not familiar with Low-Medium Residential Zoning but usually the council uses a zoning guide to stipulate how many dwelling are permitted for a block.
For example, over here in Perth we use R-codes which are R20, R30, R40 etc which denotes the number of dwelling per hectare. Any idea what the equivalent is in Brisbane??
Matt is bang on in his calculations.
60% GFA if within 400 metres of train station subject to other issues of course.
You may wish to consider moving the old house and refurbishing it and utilising the balance of the land.
You might even get 3 x 3 bedroom and the house or 2×3 + 1×2. The house will have more value than a single land site and you might be able to use as holding income whilst you get your develop application through.
I have done several small developments in Wilston / Newmarket area and is it is great suburb for Townhouses.
Cheers Richard [email protected]
http://www.yourstatefinance.com
Development Finance & US Finance our speciality.Richard Taylor | Australia's leading private lender
Hi there, Matt i am sorry i think your sizes r too small and will not sell.
1. Go and see 4 agents to see what is popular in this area for rental and selling.
2. Making money is starting from the end then working the numbers back to the start, not the other way or YOU WILL FAIL!!!
3. Go see a builder and do a feasibility study, i use Guardian Research its cost but it will pay.
4. See an accountant to go over the numbers if u don’t have the confidence.
5. Give people what they want NOT what YOU think and u will be successful.
6. Most developers go broke over ego.
resiwealth.com
Great advice resiwealth.
I also use your method when conducting feasibilities. With the current weakness in the realestate market it is very difficult to make money from property developments.
Apart from this BCC had a massive hike in fees as of this financial year and town house construction costs are prohibitive.
While this site may have 2 lots it means little when you are applying to build townhouses. This means the council will slug you with massive operational works charges.
However if you manage to pick this block up cheaply and can afford to land bank then it may work out to be a worthwhile project in the long term.
Sailesh Channan
http://www.developersedge.com.au
“Helping you select,develop and profit from property”
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