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Build diary - Duplex + retain existing

Discussion in 'Development' started by GoOnAndTell, 4th Aug, 2015.

  1. GoOnAndTell

    GoOnAndTell Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    86
    Location:
    Melbourne
    After typing out the other thread with our (hopeful) planing through to sales diary i thought it might be good to keep a log of our current project which things are moving along on. Block was purchased about 4 years ago but due to a variety of reasons (mostly being our greenness) only just recently started a build.

    Ex-department of housing 3 bed, 1 bath, tilt concrete construction, on a corner block, on purchase we;
    Painted - Someone else
    Polished the floor - Someone else
    Put new doors on the kitchen cabinets - Us
    Put A/C. - Someone else
    Replumbed the house (copper was stolen before we purchased). - Someone else
    While i was off work last year the bathroom was falling apart so we took the opportunity to strip the old bathroom out and replace (while the tenanted!).

    The block itself was 'flat' in our eyes although we have still needed a retaining wall and slab to be raised. It sloped slightly towards the street, and only has a minor easement across the 'back' now right hand side of unit 3.

    On the back we are having built, each will have its own street frontage being a corner block
    1 - 3bed, 1 bathroom, 1 garage, 2 storey place.
    1 - 2 bed, 1 bathroom, 1 carport with roller, 2 storey place

    There was a a few questions around 'structure' in the last thread so for interest sake this one is in a unit trust, which isn't ideal for tax as it has to be distributed according to unit ownership and in each applicable tax year if we sell, although our aim is to retain as much as possible. The trust was setup long ago when my (now) wife and I started dating and wanted to setup a clear investment vehicle between us in case things didn't work.

    Slab went down today for the main house pad along with the footings for the garage brick walls. Walls are being made off site being a smaller block so with any luck garage will be bricked next week (structural) with timber frames going up in tandem.

    'Flat block'
    FullSizeRender.jpg
    'slab'
    FullSizeRender (1).jpg
     
    LifesGood likes this.
  2. TML

    TML Well-Known Member

    Joined:
    4th Aug, 2015
    Posts:
    113
    Location:
    Sydney
    would you be able to give us some costings? thank you
     
  3. GoOnAndTell

    GoOnAndTell Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    86
    Location:
    Melbourne
    Sure.

    Original block/house $400k, (this was 4 years ago)
    Plans/permits/everyone with nose in trough about $35k
    Building turn key (blinds/coverings/drives) $430k total
    Not included landscaping, service connections, holdings (place is negative geared), stamps, legals, etc...

    Value for finished (based on today val, these have come up a fair bit since we did initial business case when we purchased)
    Unit 1 (3 bed) 370-410
    Unit 2 (3 bed) 380-420
    Unit 3 (2 bed) 360-400
    Bank val for block as one for borrowing purposes $1.05m

    I actually went past today and ran into the sub contracted framers, they had were ready early (frames built off site) so had already put up unit 2 walls ground floor and would likely be done with unit 3 by end of today. Brickie is scheduled to start later this week.
     
    shelleykins likes this.
  4. shelleykins

    shelleykins Well-Known Member

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    19th Jun, 2015
    Posts:
    47
    Location:
    nsw
    Nice one goandtell. Where is the development located?
     
  5. HD_ACE

    HD_ACE Game-Changer Premium Member

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    18th Jun, 2015
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    Location:
    Perth
    Is that 1.05m valuation as is or IOL constructed?

    Cheers
     
  6. GoOnAndTell

    GoOnAndTell Well-Known Member

    Joined:
    18th Jun, 2015
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    Location:
    Melbourne
    Reservoir but the numbers don't stack up in the area anymore :( unit sites are worth a decent hit more and the finished vals haven't increase AS much. Also the council has just backed off the pro dev band wagon (see my other thread which in the old times would have been a 3 site).

    Sorry IOL? Don't know what that means.
    As is with plans would likely have ended up high 500 or if we are very lucky 600.
    $1.05 was the completed but all on one title val from the bank it had a massive hair cut built in to cover the banks behind in case sub division didn't go through.
     
  7. HD_ACE

    HD_ACE Game-Changer Premium Member

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    Location:
    Perth
    Thanks
    Yes was getting at valued as completed but on one title. Which you answered.
     
  8. GoOnAndTell

    GoOnAndTell Well-Known Member

    Joined:
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    Location:
    Melbourne
    well the build is flying up, a few subbies have strung together well. Garage for unit 2 brick work is up (structural), timber frames for ground and first floor up, roof trusses up, windows in. Roof tiler is/was booked for this week but i haven't gone past to see if that has started. Brickie is booked next week, expecting a lockup progress note in about 14 days.
     
  9. t3t5ujin

    t3t5ujin Active Member

    Joined:
    12th Jul, 2015
    Posts:
    30
    Location:
    Sydney
    Congrats!!! Excited to hear about your progress! Are you selling them or renting them out?
     
  10. GoOnAndTell

    GoOnAndTell Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    86
    Location:
    Melbourne
    hey sorry for the delay on updates.
    The aim is to try and hold for rentals, but the finance gods might throw a spanner in that. All up even if we refinance to 80% and pull a fair bit of profit out this property + a few country ones would make the trust CF+.

    We had site meeting for electrical and kitchen plans on saturday, also went and choose tiles.

    Second story should have started yesterday/today they are doing foam with render over the top. I am told render will be a couple of weeks to allow drying between finishing.