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Brisbane 2 homes development

Discussion in 'Development' started by Leo2413, 6th Sep, 2016.

  1. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Ok so this is the latest deal I was working on and just signed by vendor. We won't be starting construction till 2017 but will get all permits etc in the mean time. If in the slight chance we can't get approved what we want we have enough time to terminate but I'm not anticipating that outcome.

    I'll update this thread as work develops on this project.

    Where:
    Norman Park(ish) Brisbane
    What: 900sqm block to split into 2 and build higher end modern 3 level homes OR complete reno and sell if council refuse our plans (unlikely but always good to have plan b ).
    How Much: $800k for the site, $1m for the construction, 65k subdivision
    Terms: 40 working days due diligence, 120 days settlement, full access to site during DD and settlement periods.
    When: Start construction mid 2017
    Plan: 2 freestanding high end homes with city views.
    End Value: 2.7-2.8+m
     
    Last edited: 6th Sep, 2016
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  2. MTR

    MTR Well-Known Member Premium Member

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    your on fire, looking forward to progress on this one

    MTR:)
     
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  3. Ardi

    Ardi Well-Known Member

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    @Leo2413 watching with interest. Are you based in Brisbane?
     
  4. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

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    Good on you @Leo2413 and looking forward to following your progress. $800K looks like great value for a 900sqm site- is it in a quiet street?
     
  5. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Sydney Mate.

    Thanks @Jacque. It has two frontages actually, one is very quiet and the other one faces a street with moderate traffic but it's not an arterial road by any means. We got it at a decent price because it's not a site where you can just come in, get a straightforward DA and start building, so most mum and dad developers would likely be scared away. Also, I have a relationship with this agent so it helps :)
     
  6. Northy85

    Northy85 Well-Known Member

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    That's a sweet deal @Leo2413 ! What are you planning to do with them?
    Will you have to pay gst? Or can you rent them out for a year then sell them in 2018 to get the CGT discount?
     
  7. WallyB66

    WallyB66 Well-Known Member

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    Looks like you got a nice deal on the price- my double block at Greenslopes was valued at 850-900k - that's without the city views

    Good luck with it,
    Wal
     
  8. MTR

    MTR Well-Known Member Premium Member

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    Could this be your dream home, city views;)... I suppose it falls a tad short Rosebay??
     
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  9. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Keep 1 and sell one utilising the 50% CGT discount.

    Thanks @WallyB66, are you looking to develop your block ? We got this place close to land value too.
     
    Last edited: 7th Sep, 2016
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  10. Leo2413

    Leo2413 Well-Known Member Premium Member

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    @MTR wife won't settle for anything less then similar views....so its back to working our asses off for it... ff.jpg
     
  11. MTR

    MTR Well-Known Member Premium Member

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    Magnificent
    My bucket list is to book a hotel overlooking Sydney Harbour on New Years Eve 2017

    MTR:)
     
  12. Leo2413

    Leo2413 Well-Known Member Premium Member

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    @MTR go on those harbour cruises for the fireworks. You'll love it! You can feel the vibrations from the explosions and the smell of gun powder in the air...:D
     
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  13. WallyB66

    WallyB66 Well-Known Member

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    Hey Leo
    looking to build late 2017- happy to compare notes on the journey...
    Keep in touch, Wal
     
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  14. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Sounds good mate.
     
  15. RetireRich101

    RetireRich101 Well-Known Member

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    did you actually shorten your Venice trip, just for $800,000 profit?
    you need to set your priorities right :p
     
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  16. Leo2413

    Leo2413 Well-Known Member Premium Member

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    The timing worked out well in terms of signing the contract upon return but it was all negotiated at 2-5am Venice time over a couple days. The wife was fast asleep while her crazy significant other was in the toilet negotiating the deal so I wouldn't wake her..hehe...the things we do as investors..:D
     
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  17. MTR

    MTR Well-Known Member Premium Member

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    @Leo2413
    How did you locate this area, why this area? Is there lots of buyer activity

    MTR:)
     
  18. Mitchell

    Mitchell Active Member

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    I live in Norman Park and there are plenty of up-specced new homes going up. I've noticed some of the completed ones have taken a long time to sell. Reason being a lack of yard space for kids to run around. So definitely make sure you keep a bit of greenery for the family buyers.
     
  19. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Its not so much the area I care about it's more the location from the Brisbane CBD. There is a certain distance from the CBD in all directions that if the right stock is built, there is a niche market that is willing to pay a premium for it. I see a lot more buyer activity for the IP stock and also sites that are straightforward with no TP challenges so they can be built asap. The timing to build later on suits us well and I am happy to accept a site that has 1 or 2 small town planning challenges if the price is right and if the site also has a bonus twist (city views in this case). This site certainly isn't going to be an easy tick the 3 boxes and start building but I am confident it wont be too difficult to get approved what we need to make it great.

    Architect and TP are doing a subdivision plan today and then we will have a pre-lodgement meeting with council to discuss our plans and get their feedback. Fingers crossed :)
     
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  20. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Thanks @Mitchell for your advice, I will take it into account. Cheers.