Developing in Adelaide

Looks great. Any indication of what rent may be or did I miss that somewhere ?

 

That was in the first post - I've had it appraised at $280 a week each dwelling. I plan to keep both on completion.

 

Not knowing that area $280 sounds good.
Had any querky things with Statesman at all ?

 

A few quirky things with finance, but yea with Statesman:

Hmm, at first their email system wasn't working so I'd be getting contracts and things from someone@gmail and someone@hotmail etc which was a little off putting.

Then the person I was dealing with was longer with the company (no idea if they left or fired or whatever) so got juggled around for a bit.

Once it settled down everythings been smooth sailing from there touch wood. Eg approvals and plans were in, the encumbrance people accepted it, Selections (colour/fitting choosings) were done etc.

Progress on the actual build seems quicker than I thought it would be. Hopefully they can keep this rate up and be done by xmas.

 

Just wondering why you went with Statesman over other builders ?
Was it design or price or both ?

 

Price was definitely very competitive. I'm building in one of the cheapest suburbs in Adelaide so need a product that stacked up. Design I didn't really care about as long as 2 of them fit on the block and had 2 bathrooms and 2 living areas (for valuation purposes).

Secondly, reviewed lots of other peoples' (clients', friends', family, mortgage broker's, etc) feed back on what the end values were coming in at. It's my view that their end value (by a bank valuer) vs price ratio is very good.

 

Looking good DT!

 

Great stuff Dave!

 

Was thinking in terms of cash on cash return this morning

12k deposit on block + 1200 stamp duty + 22k split = 35.2k (everything else was OPM I think)

560k end val x 88% - 427k existing debt =65.8k

Coc = ~186% (if I'm doing it right?)

 

Did both my 1st and 2nd progress payment today, being ~$27k (footings and slab) and ~$33k (frame) for each dwelling. Four more progress payments to go for each dwelling, but these are the largest 2. Might go for a drive up there on Thurs or Friday this week, hopefully the roof is on.

 

Went and had a look today with @Corey Batt 18-9-15 and I seem to have some progress. Bricks, roofs, gutters and glass are in! Holy crap

Front: (ignore the face bricks its going to be rendered)

Side: (ignore the gutter colour, its unpainted)

Rear:

So gyprock, internals... end of year goal looks firmly in grasp.

 

Looking good @D.T.

 

It's going up much faster than I would have expected.

 

Yea its great. Holding cost is nil for the construction portion as haven't had first loan repayment yet.

 

Ah DT... you make it all seem so easy.

 

Isn't it?

 

Er.. no. There are layers and more layers of knowledge that are acquired over time.

 

That's all developers do. Forecast a few numbers, wait the 12-18 months and then collect huge profits

 

A little bit too quick for my liking.@DT,have you put into the contract independent inspections at each phase before progress payments are released?

 

First little hiccup - the resident next door has complained about the fence. Apparently her small child can now get out.

I was going to go up there to take some progress pics this weekend anyway, so I'll measure the space and see if I can temporarily put a panel or something in for them. I already asked the builder if it's something they'd do and they don't want a bar of it.