City of Parramatta duplex development

Discussion in 'Development' started by Sackie, 27th Jul, 2015.

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  1. Sackie

    Sackie Well-Known Member

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    Sounds good mate.
     
  2. Jamestangjjj

    Jamestangjjj Member

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    Newbie to the forum and very interested in property development.

    Well done mate.

    Iam looking at the figures, did you make an assumption of 1 year holding costs?

    and what is the actual net profit? i assuming there will be agents fee and tax?
     
  3. Sackie

    Sackie Well-Known Member

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    HI james,

    Your assumption on holding costs is correct but i did it for 15 months.

    Net profit would be minus agents fees and tax on end figures but we are not selling eigher. Will just get reval, extract equity and roll onto another project.
     
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  4. neK

    neK Well-Known Member

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    I never mentioned anything about credit. You need to get that chip off your shoulder.

    I'm just talking about using numbers that show the true value.

    I have a property in a nearby suburb if I ran with the same numbers you used and used the purchase price I picked it up for many years ago, it would be showing a 70% return. Hardly a true indication.
     
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  5. Sackie

    Sackie Well-Known Member

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    Hi neK,

    Have you thought to develop your block mate?
     
  6. Jamestangjjj

    Jamestangjjj Member

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    thanks Leo.

    I just curious how ppl make money these days on duplex if the cost of homes currently are at the $1million + mark????

    you are luckly that you brought early and it was $744K
     
  7. Sackie

    Sackie Well-Known Member

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    Well even at 1m it still stacks up well but some are selling for alot more than that. I can only assume some are builders so save on that margin.
     
  8. Jamestangjjj

    Jamestangjjj Member

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    do you know how much does builder themselves build for?

    a typical build for developers are around $600 - $650K, so how much can a builder do themselves? $400K?
     
  9. Sackie

    Sackie Well-Known Member

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    I think its around 20% give or take mate.
     
  10. neK

    neK Well-Known Member

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    Yes. But i don't need to at the moment.

    I'll look into redeveloping it later if the zoning's change to allow me to squeeze more dwellings on the block.

    Duplex doesn't give me much in terms of cashflow... especially as i use a buy and hold strategy.
     
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  11. Aaron Sice

    Aaron Sice Well-Known Member

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    plans or \delete\ban
     
  12. Sackie

    Sackie Well-Known Member

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    Sounds good mate.
     
  13. Jamie_

    Jamie_ Well-Known Member

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    I'd also be interested in seeing the plans for this :D 1.2mil for a duplex, would have to be pretty high end huh?
     
  14. Sackie

    Sackie Well-Known Member

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    HI Jamie,

    The specs are mixed with some high spec and some high medium. I had a look at the duplexes that sold in the area to make sure I was in line with what was being built , and in some cases our specs are little higher than some features of what was selling. I'll post some plans in the next couple of weeks. I think each dwelling is around 210m2.

    Cheers
     
    Last edited: 28th Jul, 2015
  15. Sackie

    Sackie Well-Known Member

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    Sorry couldn't get rid of the 'draft' across the image. Just some elevations I think wont change. The floor plan might have small changes so ill post them when I get it. Apologies I know its not the clearest.

    Thanks guys.
    frontrear.PNG

    side elevation.PNG

    secaabb.PNG

    graphicfront.PNG
     
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  16. Sackie

    Sackie Well-Known Member

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    Update: Submitted the 88b to register the easement @ LPI! Hopefully they wont take too long to register it. Want to start construction asap.
     
  17. Aaronjod

    Aaronjod Well-Known Member

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    Just curious, on something like this:

    When you build a duplex do you get 2x sets of rates (they have to be separate titles?)? Does it push you closer to the land tax threshold? I realise your fabricating some decent equity but if you were to do a couple of these you would get stung for land tax? I mean worth 1.2 mil ea, what would these rent for? 600-700? If you get stung with land tax they would be very hard to develop and hold? Either way - nice work!
     
  18. Sackie

    Sackie Well-Known Member

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    thanks aaronjod,

    They'll rent for around $850/week.With regards to land tax, the combined land value may increase but it's the same with as you get more properties your land value will increase anyway.

    Each development that's done is hopefully based on sound business decisions with a ROI already calculated and plan for the stock to eigher be held or sold or both, and risk taken into account. I don't shy away from paying Land tax if the overall benefits /profits/cash flows of each deal outweighs it's nominal future business expense.
     
    Last edited: 9th Aug, 2015
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  19. Aaronjod

    Aaronjod Well-Known Member

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    Yep, makes sense. Thanks!
     
  20. Tenex

    Tenex Well-Known Member

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    Good plans above and putting the garages next to each other is what most duplexes look like in Parramatta at present.

    I have deliberately put my garages on either side and put the entrances next to each other. This way you can create a bit more internal space without it being considered as a part of your floor space ratio.
     
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