Hey Guys, Keen to hear about any Dual Occ projects you are currently completing, or starting in NSW? - Where is your project? - What is the size and configuration? - Torrens, strata, attached, detached? - How are the numbers stacking up? Are you selling, retaining? - Did you start with vacant land, existing house (demolished or retained)? I am currently looking for my next project, having just completed one in Lake Macquarie area. Two-storey, torrens title, 3/2/2 configuration, detached, both sold and a ROC of around 15%. Really happy with the result and it was another great learning experience - looking for a higher return though. Happy to hear of anywhere worth looking into!!
Would love to know with your Lake Macquarie project The purchase costs Development costs How long it took start to finish? While 15% isnt great - a quick easy 15% is still great
same, would love to know more, sounds pretty good, and 15% sounds like a pretty safe and reliable profit. Do one of those every 6 months and you are doing well! @Vantage15 was it a package through a development company? How involved were you? Cheers, Inertia
For sure. - Purchase costs were approx. $350k - Development costs were about $720k (includes design, construction, sewer and water, subdivision, development contributions, fencing, etc. - Timeframe worked out around 6 months for design and approval, 6 months for construction. To be honest, it was probably a bit of an expensive one. Went for something a bit better than just a standard cookie-cutter, but still feel like that was a good move. Like I said, I would like to push for some higher returns for the next project, but completely agree - 15% for the timeframe isn't bad, and I have also kept learning. The aim is to do one a year. I would love to forward plan a second and if there was one project finishing every 6-8 months I would be really happy. But probably a little off that though. No package, and I was as involved as I could be. The builder had a design arm so they completed the design, managed the engineering plans, and lodged the DA. I was in contact with them pretty regularly through the design phase to provide what we were wanting, make changes to plans, select colours and specs, etc.. Then reviewed their tender, queried pricing, identified changes, and covered off the contract. I also coordinated the sewer and water design and the plumber to complete the works, the surveyor to prepare the DP and 88b, the solicitor for sales contracts and sales, real estate agents, sorted the nbn connection, and regularly talked with the builder through construction, met them on-site, reviewed variations, lodged BAS statements (owned in company structure).
Sounds like a great project @Vantage15. So you will be continuing with Dual Occs going forward? I’m starting to do some research on the pros and cons of this strategy, if there’s anything you could point out from your recent experience that’d be appreciated. Thanks
Thanks ADLO For sure, if the right properties come up where it is worthwhile, it is something I would keep doing. Starting to look at options where we might be able to build 2-3 townhouses behind an existing house which can be retained, and also some small scale land-only subdivisions. Just looking to do anything that stacks up going forward really. Just some things to think about: - They can be fairly straightforward and relatively easy to manage risk (in comparison to some larger scale projects) - which for me has helped with learning various aspects. You can get a pretty good handle on your costs before committing, and just keep refining that as you progress. It is important to allow a contingency for variations, particularly for ground works. - Know your market and built something that ticks their boxes. - Aim for areas where there are more limited options in terms of what you are building, rather than areas where there is heavy presence of investors building the same thing. Try and have a point of difference in what you build, rather than just having a basic cookie-cutter that a buyer can get anywhere. - Be realistic about what you can sell for (if that is your strategy), and keep enough of a buffer in case you need to get out quick. Have a back up plan in case you don't sell in the timeframe you are after - could you rent each unit and cover your costs and how would this affect your personal circumstance. - If selling is your strategy, don't forget GST as that can chip some profit away. If you are going to retain and rent, then you could get a pretty good equity boost and save on some GST. - If you're comfortable and capable, manage whatever parts of the process that you can to learn, and also where you might be able to save some money. - It isn't a strategy that is going to stack up everywhere. As I and others have said above, the return was good off the couple we have finished this year, but not mindblowing. Be patient and look for areas where it can work if that is the strategy you are wanting to use. All the best with it!
That’s brilliant, really appreciate your in depth reply. I think I’ll read it a few times! All the best with your next endeavour. Thanks
