Basic Developing lessons on a cheapy reno plus a split.

Discussion in 'Development' started by Luke T, 16th Aug, 2019.

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  1. TMNT

    TMNT Well-Known Member

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    nothing is more powerful than knowledge, if you calculate your hourly rate from our first project, unless you get lucky, you arent going to learn,

    you need to think of the bigger picture
     
  2. TMNT

    TMNT Well-Known Member

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    thanks for sharing luke!

    yes as others have said the equity gain for you wasnt as big as you had hoped, but with renos, there are so many unknowns,
    can I ask how many projects you have done?

    my 5th project, I thought I had it all worked out,
    I planned 3 weeks for a house where I would do it full time and hire 1-2 people full time, all handymen, one was a old guy who knew how to plumb, rewire, and do everything

    I aimed to repaint, replace kitchen, knockdown one wall, knockdown wall between toilet and shower, polish floorboards, new light fixutres, fix shed, clean roof,

    I only exceeded the budget by about 20% but it took 3.5 months, and I still didnt get the final price I wanted (so I didnt sell)

    even to this day, I still dont know why it took so long

    ps. those shiny tiles for your enclosed verandah, did you just tile over the original tiles?
     
  3. Luke T

    Luke T Well-Known Member

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    I agree TMNT , that’s where the experience and confidence comes from - doing it . As long as you don’t go in totally blindly .Then again we all learn differently. I am a hands on practical experience person myself . This one was purposely for experience when going into it . But st the same time it’s easy to plan that before going into it but the actual carrying out of the job is a real hard slog when Yr working day in day out !
     
    Archaon and TMNT like this.
  4. Luke T

    Luke T Well-Known Member

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    Totally mate !
    That one sounds massive -! Hope you got some good growth out of it ?!!

    I have done 30plus now I reckon , but my preference is the reno in 2 weeks to a month then rent , then hold long term for Capitol growth as that’s where the good profit has been for me . Also all mine are cash positive so I do it as my cashflow for income as that was my dream to get out of the rat race - which I did 20 plus years ago .

    The shiny tiles yes they are over the top of originals after skimming them.
     
  5. Archaon

    Archaon Well-Known Member

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    Sorry if it came off as belittling, I wasn't meaning it too.

    Oh I do think of the bigger picture, My first sub-division took 4 years to complete, second one has taken about 8months so far, alot of routes explored, a lot of hurdles thrown up etc.

    Developing isn't easy, if it was, everyone would be doing it.
     
  6. T-MAC

    T-MAC New Member

    Joined:
    9th Jan, 2021
    Posts:
    1
    Location:
    Banyo
    Bought 215k, 764m2 corner block. 2009
    Subdivide and sold old place for 345k. 2017
    4 year subdivision woes
    Subdivision and holding costs of about 45k-60k
    New build and landscaping 250k.
    Sold new build 2019 470k[/QUOTE]

    Hi Archaon,

    Did you split the block right down the middle with a frontal driveway coming in of the two streets or one? Any trouble with zoning? I was thinking of splitting my 764 corner block in Banyo but not sure of the restrictions.

    Thanks
     
  7. Archaon

    Archaon Well-Known Member

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    Newcastle
    Hi mate,

    I had 2 driveways from the same cul-de-sac, it allowed me to give the new block a solid house number (not a 1/xx or xxA xxB etc)

    Will depend entirely on your block dimensions?

    Have you searched your local DCP (Development Control Plan) and LEP (Local Environmental Plan) these will help you determine what you can do.

    You should talk to a local Town Planner, they will be able to give you the best advice.
     

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