VIC first IP in Werribee

@sash you're the PC H&L Melbourne expert now.

 

Yep...

I don't like Annandale...way too many overseas investors.

The other question can you get a 3x2x2 on 10.5 wide...to do that you need the convenant which allows you to do that. People want one side not a zero lot.

 

Yes...very hard...but the 12.5 by 21 stuff is pretty good as you can get a 3x2x2 with 3-4m of back yard or more with the right design. Try Trevor homes who will do a custom build in the area for a very competitive price.

 

We on the last purchase in Armstrong Creek I had to take 10-15 drop as it was ready over Xmas and wanted it rented quickly. Total build cost 337k...rent 380pw.

The one in Mickleham....303k build cost with expected 350-360pw rent.

Officer....320k build expected rent 350-360k.

On those numbers positive to neutrally geared from day one without depreciation. With depreciation...I take it town on CF+ income.

For example 337k build costs me about $14,500 I/O, plus rates/water $2000, insurance $800, plus management $1000. Rent is 19,380 (1 week vacancy) expenses $18,300. So positive about 1k.

Mickleham I/O loan (today's rate) $14,000 plus rates water $2000, insurance $800, mgnt 1000. $17,800 for expenses...rent 17,940. So about neutrally geared.

The beauty is the depreciation aobut $12k in the first year. On my income that is 6k in the pocket!

 

Nope you are.....thanks for the tip on Dennis Family already put $500...just working through details ......I am just the PC tightarse small lot developer who wants a high grade finish.

Are you doing any more builds?

 

Thanks @sash. How long did it take for the land to settle since signing contracts for those three H&Ls? Is it in the range of 1-1.5 years?

 

if you really want to push the numbers (some spec builders like the balkan builders - croats, serbians and bosnian) they do even lower numbers than the volumes although there are some risks due to being a smaller builder.

I'm not doing any more builds. i'll see if i can offload 1 and then view my options. there are margins of $50K to get new land and organize and then wait off the rents but i find it quite troublesome with all the organizing etc. wanting to see if there are other more higher growth options around. there is no more boom coming anytime soon so manufacturing growth is the only way forward

 

I guess both Melbournian/Sash share, on writing a book

 

How do you guys find the cost of the house? On the builder’s websites they have specs and photos but no $$. A quick email or phone call I assume?

 

Yep but be aware that the base cost of a house is not the cost to build it.

 

Hi melbournian


How is the demand for these? I can see that the numbers work on paper but is the end product actually selling for the price you want?

 

i sold one for 430K last year and hoping to close the deal to sell another one 445K with my tenant this year. I was cash flow positive for the day i had it rented. Both were cash flow positive as they were basically bought and build in cash without loans. THe margins are gained through not doing everything with the buidler such as concreting driveways, Lanscaping, fencing, stone benchtops and few other items to make up the margins. I did one to lockup and managed the rest through sourcing and picking the finishes. I wouldn't do this way again as it's quite a bit of work and the tenants on this side of town can be troublesome. i much prefer a single place to focus on.

 

Any view on merrifield estate in mickleham? The land isn't cheap.

 

Hi Sash
How about Laverton, old houses or new ones there near the train station or is Tarneit a better location.

 

IMO, the horse has bolted in Laverton.
E.g. 470K for 56 Maher Road Laverton Vic 3028 - House for Sale #122411986 - realestate.com.au
By the time you include the closing costs and Town planning permit for 3 dwellings it is 510K or 170K as the land cost per dwelling. Assuming a conservative build cost of 170K per dwelling, there is hardly any margin left in the deal to undertake an almost 2 year project.

 

So who's buying in Werribee?

https://www.facebook.com/video.php?v=1856878324575820

 

That is old news.....

 

So do you reckon it won't get the go ahead from the Andrews government?

 

I was reading all the plans and proposals etc over a year ago, but you know how things often go.....I cannot recall if it was already approved, I think it was....

 

Fair enough. However with the Andrews government being all about jobs, jobs, jobs and growing Melbourne I can't see him saying no to this project. If anything I think he'll probably claim it as a Labor victory over an indecisive Liberal party.