4 Townhouses development - Melbourne

Discussion in 'Development' started by MTR, 24th Jan, 2016.

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  1. Xenia

    Xenia Well-Known Member

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    This could get interesting. ;)
     
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  2. MTR

    MTR Well-Known Member

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    Yes, that will be interesting but of course I wont be sharing builders name, architect, town planner etc.

    I
     
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  3. Cactus

    Cactus Well-Known Member

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    @MTR Assuming you had to do stormwater retention and had a decent driveway component and given they were small (less area to share The cost of kit, bath, ens) then $14.5k/sq is a really good price especially with stone etc. Well done!

    I will be paying about $13k/sq turnkey inc driveway and retention no stone base spec and bigger units.

    Thanks for sharing.
     
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  4. Hodgo

    Hodgo Well-Known Member

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    Hey MTR,

    just read this and wanted to say good luck. You've come a long way since I read your first post on your first development. You go girl!

    Dave
     
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  5. SOULFLY3

    SOULFLY3 Well-Known Member

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    Awesome MTR, even thou my TT development is dragging on :( reading your posts keeps me motivated and envious, I just want to bloody knock it down already!
     
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  6. Ben_j

    Ben_j Well-Known Member

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    Hi @MTR

    Great work with this project, and appreciate you posting the numbers in detail.

    On average, how much time per week did you need to put into this? I'm assuming it was significantly more at the start?

    Thanks

    Ben
     
  7. abbyfresh

    abbyfresh Well-Known Member

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    It shows the power of this forum. Without it it is unlikely that the education and confidence would prevail in the first place. In your figures I think you need include all the time put in (including mental stress) against a reasonable hourly rate and deduct that from profit if not already?

    For most starting out without huge cash buffers, the mental stress and time has a value too. Can't ignore that.

    If it was as simple as paying people along the way and signing contracts then everyone would be it.
     
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  8. MTR

    MTR Well-Known Member

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    very little time

    I had people doing the work. My job was making sure they kept on track. Perhaps 1-2 hours per week phone calls

    My Perth 3 villa development was far more time consuming because the builder's project manager was too busy project managing his own personal projects

    MTR
     
    Last edited: 25th Jan, 2016
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  9. MTR

    MTR Well-Known Member

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    I had completed 3 projects prior to this one, just keep learning, baby steps.

    I am pretty chilled out these days and I have cash buffers.

    When I started I think I let ego get in the way and found out very quickly that things can and do go wrong, that was a good lesson.

    mtr
     
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  10. Hodgo

    Hodgo Well-Known Member

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    Was that your spearwood units? I'll not mention the builder :)
     
  11. MTR

    MTR Well-Known Member

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    yes it was. The quality was excellent, project management caused headaches

    Did you use this builder?
     
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  12. Hodgo

    Hodgo Well-Known Member

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    Yeah, only issue was getting DA. Once that was done the actual build has gone great, about 8 months I recon. Very happy so far :)
     
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  13. MTR

    MTR Well-Known Member

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    that is great, we took 9 months.
     
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  14. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    It's certainly no easy ride. My ego got flattened last year when I battled so much opposition to my projects. Couldn't everyone see my vision? Was I just a money hungry greedy developer like the neighbours all thought? Was I battling to prove I was right or because I honestly believed in the project.
    Developing outside the box is certainly more challenging but I still love it and it will have it's rewards when my projects are finally finished. Now it's finding more of a balance between risky/challenging projects and more straightforward ones.
     
  15. Sackie

    Sackie Well-Known Member

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    I can relate to this. All i can say is I'm done buying sites that have very tricky ( and massively time consuming) easements to overcome.
     
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  16. Redwood

    Redwood Well-Known Member

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    Thats well said MTR - stigma is amazing! It is an investment decision, not an emotional decision - you can got see all these gurus speak (not me!!!) but it comes down to commonsense in my opinion.

    Your flip strategy in the states applies to your development. Buy, use your team effectively to utilise the land, design, get it approved and bang your on your way. You can do 5 townhouses from digging to settlement in 6 months easy unless Xmas is in the way.

    Titles take a few weeks.

    Re finance, pretty simple just have to play it carefully. You need capital in the first place and most lenders will require sales to cover the debt provided however this is negotiable. You may even refinance and use equity.

    If your looking at Noble Park let me know, best to knock on doors, however you can still get stock through an agent without auction. By knocking on doors you save two per cent and can combine blocks.

    Our locations now are in the growth zone and 150m to the station so its prime. My sister has her development less than 800m from station - mine are 2br hers are 3br - big difference.

    With the build done internally - its hard to lose money.

    Watch for demolishers - choose the wrong one and you can be delay for ages!!! your in their hands and you don't wanna mess with'em. Can get nasty. We had one for ages and he unfortunately passed away - we are now working with a new one.

    Cheers Ivan
     
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  17. Redwood

    Redwood Well-Known Member

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    Now you know why Mick Gatto has a healthy cash flow.....objections are usually just to **** you off and delay the project - then when you go to VCAT they don't turn up. Try an incentive upfront - most neighbours are catching on and blatantly asking for cash to withdraw objections.

    Cheers Ivan
     
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  18. MTR

    MTR Well-Known Member

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  19. Hodge

    Hodge Well-Known Member

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    @Redwood interested to know why a dodgy demolisher can delay your build? I'm about to demolish my place and didn't think much could go wrong except damage next doors property?
     
  20. Redwood

    Redwood Well-Known Member

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    Hodgie - looking forward to the four-peet?

    they have the permit....choose carefully