Build diary - Duplex + retain existing

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'

'slab'

 

would you be able to give us some costings? thank you

 

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.

 

Nice one goandtell. Where is the development located?

 

Is that 1.05m valuation as is or IOL constructed?

Cheers

 

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.

 

Thanks
Yes was getting at valued as completed but on one title. Which you answered.

 

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.

 

Congrats!!! Excited to hear about your progress! Are you selling them or renting them out?

 

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.