Hi everyone.My wife and I are looking (still) for a house which we plan to turn into an IP within 5 years.I have been doing a lot of thinking lately about the feasibility of buying a vacant block (or a block with a crappy house on it that could be bulldozed) and I was hoping to get some feedback about estimating costs for new units.The block we're looking at is 1100m^2 with a 45yr+ 3bm weatherboard house on it. The house is in very poor condition, but my building inspector thinks it should last another 2-3 years.I hope to get some cost estimates on the following items:
1. subdividing the land into three titles (and ongoing fees associated with having three titles)
2. bulldozing the existing house
3. getting plans and permits for the 3 new units
4. getting services, gas, elec, water for the 3 units
5. estimating costs for the 3 units (i've been told $10,000/SQ is reasonable?)
6. any other costs that I'm missing (which I hope aren't too much…Could I realistically expect to do the above 5 points for under $400,000?Is this a realistic thing to do for someone who isn't a property developer?Thanks for any advice, or pointers (or warnings…).
anyone?
…or is this topic not supposed to be in the help needed section (possibly value adding??)
Thanks,
.
Hi aaabbbccc,
You will have to get plans drawn up and get council consent to the subdivision. Have a look at other subdivided properties in the area on similar size lots to see what you can possibly fit on your site.
I have recently completed a four unit development but dont have all the figures on me at the moment.
We built four 30 square townhouses with landscaping and driveways for about $1.6m
They are of a high quality so you may reduce it a little by using lower range products, but i doubt you could save more than $30k per home as most costs are fixed.Be aware the costs never seem to stop, fees and charges with every authority you can imagine. We had an unexpected charge of $6000 to upgrade the power supply in the street.
An important tip is to read ALL letters from council or any authority and act on all of their request for info, they hardly ever overlook things so act swiftly on any problems. We had more complications in the paperwork side of things than the actual construction.
Hi aaabbbccc
I'm not sure where you are located but I will tell you my story:
I had 4 units built on an 1100m2 block 1 year ago in Toowoomba, Queensland. (1.5hrs drive west of Brisbane) The building side of things including absolutely everything (council fees, etc) was approximately $580K. The initial purchase of the land is not included in this. I had a house on there which I rented out while waiting for everything to fall into place. When I was ready I sold the house , which was removed for $5K. I would of given it away as it was going to cost me $10K to get it pulled down.I employed a well known, respected builder in the area. He wasn't the cheapest but well worth the extra money. I chose this builder because he was easy to communicate with and answered my MANY questions thoroughly and patiently. It was my first development and I was very green and also pregnant!The units took approximately 6 months to build from the time the plans were put into council. I strata titled the units when completed which took another 6 months due to a few minor things (page numbering one of them!!)
I was told to allow 30% of the build price as a buffer in case things unexpectantly came up by my solicitor. Some things that unexpectantly came up:The surveyor made a mistake which cost me approximately $3K. There was a back retaining wall which was on a very, very slight lean toward my property and the council insisted that units 3 & units 4 be moved closer to units 1 & 2 which meant a slight variation in the plan. There was extra money for the electricity because the electrical company only provided the connection to the street, same for gas, $3K. There were a few issues with strata titling which cost approximately $6KI found it very hard to get finance for 4 units. I ended up getting a commercial loan at a higher interest rate. The feedback I received from the banks was that you can get a residential loan for up to 3 units. (so you will probably be o.k) Also the local council required one unit to be an adaptive disabled dwelling because I was building more than 3 units.I would do it again but I would probably stick with a duplex or triplex next time, until I find it in me to build a highrise! (-:
Find a builder you can trust and it will be alot easier for you.
DIYPM
DIYPM wrote:Hi aaabbbccc
I'm not sure where you are located but I will tell you my story:
I had 4 units built on an 1100m2 block 1 year ago in Toowoomba, Queensland. (1.5hrs drive west of Brisbane) The building side of things including absolutely everything (council fees, etc) was approximately $580K. The initial purchase of the land is not included in this. I had a house on there which I rented out while waiting for everything to fall into place. When I was ready I sold the house , which was removed for $5K. I would of given it away as it was going to cost me $10K to get it pulled down.
I employed a well known, respected builder in the area. He wasn't the cheapest but well worth the extra money. I chose this builder because he was easy to communicate with and answered my MANY questions thoroughly and patiently. It was my first development and I was very green and also pregnant!
The units took approximately 6 months to build from the time the plans were put into council. I strata titled the units when completed which took another 6 months due to a few minor things (page numbering one of them!!)
I was told to allow 30% of the build price as a buffer in case things unexpectantly came up by my solicitor. Some things that unexpectantly came up:
The surveyor made a mistake which cost me approximately $3K. There was a back retaining wall which was on a very, very slight lean toward my property and the council insisted that units 3 & units 4 be moved closer to units 1 & 2 which meant a slight variation in the plan. There was extra money for the electricity because the electrical company only provided the connection to the street, same for gas, $3K. There were a few issues with strata titling which cost approximately $6KI found it very hard to get finance for 4 units. I ended up getting a commercial loan at a higher interest rate. The feedback I received from the banks was that you can get a residential loan for up to 3 units. (so you will probably be o.k) Also the local council required one unit to be an adaptive disabled dwelling because I was building more than 3 units.
I would do it again but I would probably stick with a duplex or triplex next time, until I find it in me to build a highrise! (-:
Find a builder you can trust and it will be alot easier for you.
DIYPM
diypm, could you tell me how many sqm each unit is or the total for all 4, also how many bedrooms and bathrooms each unit has. I just want to work out what it has cost per sqm
Thanks
Hi Keiko
489.3 sqm. (including floor area, porch, carport) All units have 2 bdrms, ensuite and sgl lock up garage. Unit 4 also has a carport and a theatre room.
Also aaabbbccc, make sure there is no asbestos in the house or fences as it is very expensive to get it removed, or factor that into the cost.
DIYPM
Thanks diypm, thats not bad
Thank you for sharing DIYPM. What profit did you make out of the deal? How long did they take to sell? How's your baby????
Rushie
Hi
To estimate your project…you could use our new free calculator –
Found here:http://www.washingtonbrown.com.au/calculators
Regards
Tyron
Hi,im first timer on this forum…I was hoping to direct my Q to those who have built units in Toowoomba Qld.
If you would mind sharing info, I'd like to know which builders you used and what was your experience…ie cost blow outs, ease of communications, quality of build(sems to vary greatly)I am looking to build duplex 3 bed townhouse in Mort estate (heritage sensitive area)
Thanks
EstherProject costs are geographically sensitive, but here's some benchmarking that may be useful:
1. subdividing the land into three titles (and ongoing fees associated with having three titles)
It's not the first part of the process, however, the subdivision costs in isolation are not great – say $5,000/allotment.2. bulldozing the existing house
Give or take a few variables, around $15,000 for a regular house and outbuildings.3. getting plans and permits for the 3 new units.
Around $10,000 per dwelling for planning and working drawings.4. getting services, gas, elec, water for the 3 units.
Approximately $5,000 per dwelling for connections.5. estimating costs for the 3 units (i've been told $10,000/SQ is reasonable?)
In my experience this is generally closer to $1,500/m2 (and there are 9.29m2 per square)6. any other costs that I'm missing (which I hope aren't too much…
Town planning fees, driveways, landscaping, contributions, engineering, and maybe others like traffic engineering, arborist and hydraulics.Could I realistically expect to do the above 5 points for under $400,000? No. It is unlikely.
Best of luck with the project.
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