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″ />Considering the block is 1100m2 i imagine it should be possible to fit 5 x 2bd units/townhouses. Any particular reason you chose to build 4 as opposed to 5?
Also, given you will be on-selling, is your preference to sell a few off the plan or do you just wait until completion?
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
How is the development progressing Oscar?
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.
Congrats,sounds good. I have been watching with interest, will be good to see the finished product.
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″ />Outstanding – Well done!
Looking good oscar – what material have you used for the second level?
TheFinanceShop | Elite Property Finance
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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: $1.1mThe 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
G’day Oscar.
Is rent from properties your only income? If so, how do the banks treat your income when you apply for loans?
Hey Oscar, have been following this post since day 1, great to see 40% profit margin, well done.
40%………WOW.. you’ve done extremely well, good luck with next one.
Do you sub out as a builder for developers?Cheers
StefanHi Oscar, late to this post, but looks amazing. Great achievement!
With the profit do you start funding your next project yourself or is it still better to get bank loans and pay the interest?
Cheers,
MattThanks 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.Hi Oscar,
Nice work. Are the majority of your developments in NSW? Can you recommend a savvy broker that is switched on with the process of getting money for building projects for developers that are the registered builder? I have found previously that when a bank finds that i am the builder and the developer they become increasingly difficult to deal with. Any suggestions?
Thanks,
SteveSteve R | In Design - Project Designers & New Home Builders
http://www.indesignonline.com.au
Email Me | Phone MeDIY Registered Builder - Ask me how?
Hi Oscar,
Nice work. Are the majority of your developments in NSW? Can you recommend a savvy broker that is switched on with the process of getting money for building projects for developers that are the registered builder? I have found previously that when a bank finds that i am the builder and the developer they become increasingly difficult to deal with. Any suggestions?
Thanks,
SteveMany do owner builds but LVR is limited to 60%. One lender will 75% and the other will do 80% (or more depending on the strength of the application).
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
None of ‘complete development solutions’ numbers work, request address of said development and check on Rpdata what they sold for. 2 year project for 12-14% return.
The OP Should post address for potential customers to see of results rather than relying on his word :)
1, 924,000
– costs of 1,380,000
= 544k gross profit
544,000/1,380,000
= 0.394 x 100 = 39.4 % ( and he said approx 40%)His gross return profit calcs are fine. I think you need to change the batteries in your calculator.
And why would he post the address online. If you wanted to know badly a PM would suffice and if you really wanted to know you could search sold prices for the price he said it sold for, and with the sqm size.1, 924,000
– costs of 1,380,000
= 544k gross profit
544,000/1,380,000
= 0.394 x 100 = 39.4 % ( and he said approx 40%)His gross return profit calcs are fine. I think you need to change the batteries in your calculator.
And why would he post the address online. If you wanted to know badly a PM would suffice and if you really wanted to know you could search sold prices for the price he said it sold for, and with the sqm size.If you sold for the price in the feaso why wouldnt you post adddress online? Posting address people can confirm its all fine in the numbers depertment…more proof more potential customers. You need to check on RPdata once you do that come back here for a discussion.,, i know the address and have checked.
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