Building a Dual Occ in Bentleigh on our PPOR

We are thinking of demolishing our PPOR in Bayside Melbourne and putting up a dual occupancy of 2 x 4BR Townhouses. Council is Glen Eira. Aim is tod live in one and sell the other. Questions we have are:

1. What can we expect with a budget of $800k - $1.0m?
2. Who are the recommended home builders. Eg. Metricon, Carter Grange, other Boutique Builders etc....?
3.The additional costs we have estimated are:

• Rent $40k
• Demolition $25k
• Interest $40k
• Other building associated costs such as council, civils, landscaping etc.....$100k

4. What would timeline from cradle to grave?
5. Do you get the same added value dollar for dollar on the sale when copariing low spec build vs high spec ?

Please feel free to add anything else we haven't already considered.

 

What's the goal with the development?

If its to make a profit, you need to really crunch the numbers with estimated sale values and make sure its worth it - and to compare against your opportunity costs such as simply selling up as-is and buying or developing somewhere else.

 

I would build it - premium suburb - but wouldn't spend 1 mil to build probably around 700Kish.
if you are in the Mckinnon school zone $$. basically a magnet of CG.

 

Metricon does a lot of dual occ around the area. They tend to rent back one of the houses for a while as a display home.

Cost is around $700,000 for two double storey three bedrooms on a 15.25m wide block.

$40,000 seems high for a year's rent.

How wide and deep is your block?

 

Hello please share block size... is it 16.7 x 39?

I have two properties in Bentleigh East and very familiar with the area. You will need to spend the $1m for two but that should cover landscaping / blinds etc.

Thomas Archer / Latitude37.

No offense to other posters but $700k will not cut it and stay away from Metricon etc.

 

you are probably right - been hanging too much around the northern and western suburbs

Bentleigh east is up there with the likes of kew and Balwyn.

Though seen some of the 700kish build 2 sided by side in ashwood still fly for 1.3 mil each.

 

51' x 125' or 15m x 38m

 

Thank you all for your replies and they are all appreciated. We are not necessarily looking for a profit but def. want to break even. the bonus will be we will be living in a bigger and more efficient living space that is brand new. $700k will not cut it in Bentleigh. From what I can see, people are paying for higher specs and some of the lower specs are just scraping $1.2m - $1.3m sell price. Buyers are more discerning and I think if you spend $100 - $200k more for a classier property, you'll get the same back if not more in this suburb. A lot of Carter Grange single/dual occs in the area and other boutique builders. Metricon homes seem to have facades that will date and interior finishes/appliances and fittings are pretty basic.

 

Unfortunately Thomas Archer don't do Dual Occ. We want to live in one and sell the other.

 

They do... well worth popping into their office on Centre Road for a chat.. pricing as follows for Duplex. Should consider ~20% in mods/extras although their standard inclusions are impressive.

 

Yeah good standard block. Easement at rear I hope? What is your block orientation... i.e. is it North facing backyard?

 

Yes Easement at rear. West facing block

 

Thanks GRO5CP. I phoned them last week and I spoke to a salesman who said no.......Might take your advice and go in in person.

 

Probably can’t build boundary to boundary if doing side by side. Carter Grange do nice builds provided you are OK with Hebel.

 

LCK
I would tender it out to many builders, in fact I stay away from the larger project builders because you will pay a premium for the build due to their overheads. Definitely go for higher specification this is not hard to achieve.

Going to be fun and games with this council. Know someone who got 4 townhouses on block in Bentleigh, currently building.

All the best
MTR

 

Thanks MTR - the reason we've looked at larger project builders is due to their ability to PM the whole job. We both work and not very "tradie minded". But if you can recommend any, we'd be happy to explore as we are only at the embryonic stage. Agree with the higher spec. Doesn't cost that much more when you look at the overall project cost which will be $1.1m - $1.2m by the time we look at "all in" costs. We're preparing for the worst and hoping for the best!

 

Any appropriately registered builder should be able to project manage the build - that's what builders do - project manage and sub out the work to tradies.

Alternatively, If you have a decent budget, and want to go for a bespoke architect-designed building, then your architect or building designer can oversee the whole project.

 

Hi TB - we need (or would like) to do some renos which will probably cost $200k. If the total project cost is $1.2m, 4BR Dual occs in Bentleigh are going for min $1.3m for low spec new builds. By the time Glen Eira council gets its act together (i've only heard bad reports about them), we might have a completion date in 2 years. Market may go down in that time but I'm betting it won't. With a bit of luck, we might wipe our existing mortgage.

 

But how does it compare to a scenario where you just sell up now, and then buy the type of property you want? I think a lot of people forget about this option and romanticise the benefits of developing their own property.

 

I'm starting to get the opinion that developments in a boom period are riskier then those in a down market, as everything is selling at a premium and profit margin's therefore are reduced.

Not to mention lead time on getting the stock to market could spell disaster if the market turns.