Brisbane Splitter Development

Discussion in 'Development' started by Sackie, 20th Sep, 2018.

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  1. Sackie

    Sackie Well-Known Member

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    Started this project 1.5 years ago and then I had 2 opportunities come up during that project, so put it back to rent while I capitalized on some JVs (was definitely worth it) . Now back to the project. This is the old link but I thought I'd start it fresh with the basic details so you don't have to go through all the banter in that first thread.

    South Brisbane Splitter development


    Location: South Brisbane
    Property: 964sqm block, Residential A
    Cost $640k for the site, 900k build
    Sale: $2,300,000-$2,400,000

    Demolition has started this week. Will update as it progresses. Subdivision will take about 4 more months.
     
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  2. gach2

    gach2 Well-Known Member

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    dont know much about the property
    but in your opinion what do you think the site is worth in todays market?
     
  3. Sackie

    Sackie Well-Known Member

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    House as is probably around 850k mark.
     
  4. willair

    willair Well-Known Member Premium Member

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    Sounds good Leo,just hope your take some pictures as the property is levelled..

    This is one of the photo's I have ,that was split into 2 blocks several years ago..good luck ..


    [​IMG]
     
  5. Sackie

    Sackie Well-Known Member

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    Cheers mate. I have asked my Subdivision Project Manager for photo updates. I will be again in Brissy in a few weeks to have a look. When I get some photos I will post. Due to the slope it will be a split level design so it wont be able to be levelled as such after demo, but I am hoping for a neat site with sediment control due to the slopage. Don't want a council fine for my sand ending up in the middle of the road..:)
     
  6. gach2

    gach2 Well-Known Member

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    I'd prob use that instead of the cost price
    but figures still seem good
    whats an eta till completion?
     
  7. Sackie

    Sackie Well-Known Member

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    Agree, our current feaso is using sale estimated sale value of house. Also, the end sales value has gone up a little. Probably now around 2.4-2.6m. I'm not in a massive rush to finish. Self funding no debt. Hope to finish the subdivision in around 4 months so the builds around August 2019 or so mate.

    If I get a good offer for the lots I may even sell the lots and do a quick turn over of funds to reinvest.
     
  8. LJW

    LJW Well-Known Member

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    Hey Leo. Interesting that you use a project manager for a 1 into 2 lot subdivision. What do they charge for this?
     
  9. Sackie

    Sackie Well-Known Member

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    I don't live in Brissy and even if I did I would engage a PM. I prefer to be free. Also they are pros so will get it done faster than I would . Cost around 8k.
     
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  10. wylie

    wylie Moderator Staff Member

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    We are doing a similar project as part of a DA.

    We have engaged McAndrew Property Group. Matt and Joel contribute to the forum.

    We are very impressed with them... friendly, knowledgeable and super quick response to email, text or call. They are on top of absolutely everything.

    Matt 0410 481 703

    I plan on putting up a thread once we know final costings to help people like us (first development) who are looking for details about order of works, costs we will face, problems we may encounter.

    We cannot recommend Matt and Joel highly enough.
     
  11. Sackie

    Sackie Well-Known Member

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    Now ya see it...

    20181005_121512.png


    Now ya don't! :cool:

    IMAG0566.jpg
     
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  12. Brady

    Brady Well-Known Member

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    @Leo2413 have you linked the plans anywhere?
     
  13. Sackie

    Sackie Well-Known Member

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    Still have some tweaking to do so not finalized yet. Front façade colors are not fixed yet and will be changed a little. Also both homes will have pools. Floor plans slightly different for both lots but this is Lot 3 plans. Front Facade.JPG

    l3.JPG

    l32.JPG

    l33.JPG
     
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  14. Brady

    Brady Well-Known Member

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    Ahhh yeah I remember seeing those plans :)
     
  15. Sackie

    Sackie Well-Known Member

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    IMG_0555.jpg

    IMG_0545.jpg

    IMG_0583.jpg
     
  16. Leeroy93

    Leeroy93 Well-Known Member

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    Following with interest!
    Have a future knockdown rebuild in a similar area although not large enough for subdivision. Future zoning changes may allow but can't bank on that. Is there still opportunity for land banking splitter blocks middle/outer ring?
    Seems like its rarely the case that the numbers stack up unless you've held for a number of years prior or can build at cost.
    LMR pockets in these inner/middle ring suburbs do seem appealing also due to the flexibility and demand for high spec.
     
  17. Sackie

    Sackie Well-Known Member

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    Very hard to find splitters that stack up now mate. Once our subbie is complete I'll do a final check on return percentage on selling both lots versus building. Even if I make more money building but less percentage return than selling lots, I'd prefer to sell lots. All comes down to risk Vs reward for me. I rarely ever go for higher dollar value over higher percentage return because I feel risk is a bad **** that needs to be fully respected at all times.
     
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  18. iloveqld

    iloveqld Well-Known Member

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    I think if you sold now, you might get 1.15-1.35m maybe more with the approved plan and cleaned retained site.

     
  19. iloveqld

    iloveqld Well-Known Member

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    If you can get 1.4 now, will it be better than 2.6 - .64 - .9 = 1.6 (then holding cost, time cost, selling cost)?
     
  20. Sackie

    Sackie Well-Known Member

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    All costs are accounted for mate. I think realistically the end value for both is around 2.5m-2.65m. I have had 2 good offers on the lots already but I am still considering building. I have another one lined up after this so I I wanna get in and out as fast as I can and reinvest all of it plus more in Syd.
     
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