Join Australia's most dynamic and respected property investment community

Anyone care to share an example of their numbers with a SEQ townhouse construction?

Discussion in 'Development' started by qonyx_sydney, 26th Jul, 2015.

  1. qonyx_sydney

    qonyx_sydney Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    135
    Location:
    Sydney
    As the title suggests i'm interested if anyone is willing to share their numbers for their construction in south east Queensland

    • What was the size of the block?
    • Was their an existing property?
    • What was the original purchase price?
    • What were strata titling costs?
    • What were the construction costs?
    • What were the holding costs?
    • What were the additional hidden costs?
    • What were the valuations of the final build?
    • What is the rental yield per property against all your costs (not final valuation)
    I'd be interested to know what the numbers stack up like?

    What were the key lessons learned through this build?

    Thanks heaps in advance
     
  2. qonyx_sydney

    qonyx_sydney Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    135
    Location:
    Sydney
    Ok seeing no one has responded, here is a worksheet that i have put together with some estimates.

    Would be grateful if someone could sanity check these to see if my numbers are in the right ballpark.

    File should be relatively easy to read if you are used to using excel
     

    Attached Files:

  3. Esh

    Esh Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    192
    Location:
    Sydney NSW
    Wow, really nice of you to share. I haven't done anything like this but just wanted to say all the best!
     
  4. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,766
    Location:
    Sydney
    @qonyx_sydney

    I didnt look at all the numbers in detail, but with profit margins of 3.87% and 4.57% it doesnt stack up at all. Theres also a whole heap of costs left out.

    Also why 2 level for 3 bedrooms.? I could easily be wrong.. just my initial impression mate.
     
    Last edited: 30th Jul, 2015
  5. KenW

    KenW Member

    Joined:
    24th Jun, 2015
    Posts:
    8
    Location:
    Central Coast
    They will be impressive townhouses at 200 sqm of floor space.

    Best to look around the area to see what others are building and base your sizes on that for your initial feasibility. Construction costs seem way to high at $1920 per m2. Speak to local builders that are building similar and ask for an idea on rates per m2. They are your best source for average sqm rates for construction.
     
    Leo2413 likes this.
  6. RetireRich101

    RetireRich101 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,310
    Location:
    Sydney
    The infra fee for the 4 x TH payable to council is already $112k, and that's not including your Town Planner, drawing, connections etc.
     
    qonyx_sydney likes this.
  7. SimonKia

    SimonKia Active Member

    Joined:
    8th Jul, 2015
    Posts:
    25
    Location:
    Brisbane Southern Subs
    Yeah the numbers seem off.

    $70k total for subdivision is typical for just a 1 into 2 subdivision with no major demo and 1 lot of infrastructure costs.

    for townhouses I think you will be looking at something like:
    -20k demo
    -90k infrastructure
    -20k planning surveying applications
    -10 to 40k for water sewerage storm water works
    -15k to 25k for access and drive ways roads
    -if two level townhouse turnkey 200sqm: $250k each.

    Why would a 'low spec' second house cost $400k? A low spec single story in se qld is $180k

    A subdivide and build of second low spec should only be $250k total, maybe $300k worst case.
     
    qonyx_sydney and clint05 like this.
  8. qonyx_sydney

    qonyx_sydney Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    135
    Location:
    Sydney
    I don't really know if my numbers were really accurate so hence the margins may be ultra conservative. i think where i am going to land with this is to wait til the market rises a little so that the margins improve.. but thanks for your input
     
  9. qonyx_sydney

    qonyx_sydney Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    135
    Location:
    Sydney
    Thanks for your input. This is exactly what i was looking for as responses. I wasn't sure whether my numbers were anywhere near the mark.

    With regard to the build costs, i was being ultra-conservative. As my view is that it is better to have a realistic expectation of price creep, but as you have suggested i'm at the far end of the estimation scale.

    However it is good that you have pulled me up.

    Have you done something like this before yourself?
     
  10. qonyx_sydney

    qonyx_sydney Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    135
    Location:
    Sydney
    Thanks for responding. I like all the input that i have received as it has provided some guidance as to what i should do and agree that 200sqm townhouse would be too big - i guess i was thinking about what i would live in.. which is the wrong choice.

    I got the construction costs from the following place which is what i was working with

    http://www.bmtqs.com.au/construction-cost-table
     
    Last edited: 9th Aug, 2015
    RetireRich101 likes this.
  11. RetireRich101

    RetireRich101 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,310
    Location:
    Sydney
    200m2 for each TH is too big..

    think of a Granny Flat 60m2 in NSW that is single level. It can fit 2 bedroom nicely.
    Add another 60m2 on top, gives today 120m2. Add 10-20m2 for balcony/patio for the TH, will be total 140m2. This would be the size you aim for a typical 3-4 bed TH.

    So 140m2 @ $1500 build is $210k each
     
    Leo2413 likes this.
  12. qonyx_sydney

    qonyx_sydney Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    135
    Location:
    Sydney
    sorry for the confusion. it was a typo and i should have corrected. i actually meant 'too big' not too small... corrected in my post.. but i like the additional info that you put about Granny Flats... etc
     
  13. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,766
    Location:
    Sydney
    Agree. Need to build what is the norm for each state, dwelling in a particular area for demographic. Otherwise you will overcapitalise and the numbers just wont work and an otherwise good deal could look sour.