Development Project - No. 2 (Perth)

Hi All

Here is our second development which we purchased in December 2018. Expected completion date is late March-early April 2020.


We are currently focusing on growing our capital with the view of increasing the number of developments per year. Profits are pumped back into our next development, rinse and repeat.... I hope.

After chipping away in a flat market, we have learnt to -

1. maximise project returns; and
2. mitigate risk

Our target for this product is FHB and downsizers.

In a competitive market the edge is presentation, quality and understanding what the buyers want.


Here are the basic numbers

$550,000 land

$550,000 build

End product - $1480000-1500000


The end values are conservative, I used the numbers of sales prices from development number 1. Link attached.
Our W_______ Project

The bonus with this development site is its superior location than our first development. Block and villa sizes are larger, vibrant park across the road, cafes within walking distance and elevations for views across the park gardens.

On projections we are expecting 20-25% profit.

I will be posting photos as we progress.

TB

 

Definitely good figures

What does 550k get in terms of a build in Perth

 

Best of luck @Tommy Batch , I look forward to following the progress.

Would be great to get a bit more detail - suburb, full feaso numbers, product.

 

Been busy so not been able to reply.
But just to give you an idea the product (villas) vary from 137sqm to 151 sqm total build area.

As we are managing the project as build at cost, this is where we are saving money. We do our own staging, have our own landscaper, there are a few other ways we have been able to tweak it to make the numbers work.

At the end of the day you need to work backwards and start off with buying the land at the right price

 

I plan to post all the details once we have sold all.

Not sharing the suburb due to fierce competition.
Will say the area is gentrifying and there is a well known large developer who is building land and house packages. I don't see this group as competition as its a different price point and a different market. However, its interesting that they see opportunity in this area.

Recently, similar product (villas) hit the market and within 3 week, 2 already sold. Not too bad considering its a flat market in Perth

Going to have to start looking at other areas in Perth where I can achieve similar numbers.

 

Fair call on waiting on numbers until the end.
How about some floorplans, specs to give us an idea of what you're doing.

 

Appreciate and admire the privacy.

What areas in Perth do you think can generate the returns you typically target.

if you are doing all the work yourself do your ROI figures factor in the cost of your time?

 

Thats a great question, the answer is no. I havnt factored in the cost of my own time. Plenty of books I read tell you to pay yourself first, so maybe i should start.

 

You don’t want to be perfect on day one. You cannot improve if you do that.

 

Are these double or single storey?

Will keep my eyes on this post for updates

 

Hi just wondering which builder you building with this time? I am gonna build two villas soon and looking for a reliable builder atm.

 

Guessing double storey re the comments in relation to views over the park.

Build at cost was stated, so i dont think they will be engaging a builder per se