All Topics / Help Needed! / sub division costs

Viewing 3 posts - 1 through 3 (of 3 total)
  • Profile photo of I-will-get-thereI-will-get-there
    Member
    @i-will-get-there
    Join Date: 2008
    Post Count: 12
    July 1, 2008 - 9:04 am

    Hi
    I was looking at buying a development block which already has approval for 14 lots however
    the seller said the engineers had quoted 600K to connect all services etc which seems astronomical
    to me. He also said it is between 45K and 65K for any block anywhere. I had no idea, I was thinking 12500
    per lot. Does anyone else have experience with these costs and how much they really are? Any way of cost cutting?
    This quote is for a road, sewage, water, power, phone. They are already titled. THANKS IN ADVANCE:)

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    July 1, 2008 - 10:19 am

    Doesn't sound too unreasonable. Consider how much earthworks is required, then the roads & services. Unless you tender each part, allow for supervision, prelims etc you won't get much better. ?Try sending it out to tender.

    Profile photo of CHISCHIS
    Participant
    @chis
    Join Date: 2008
    Post Count: 80
    July 1, 2008 - 3:15 pm

    Roads and earthworks are ridiculous. You need to crunch the numbers. Costs of development + CGT after sales………….are you in front? Allow interest on loans during development. Are you still in front? If not, don't do it

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.