My 1st Multi unit/Townhouse Development Melbourne...

Discussion in 'Development' started by Singhsaab, 30th Jan, 2022.

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Which Melbourne suburb for $2.5m(including land) multi townhouse development?

  1. Oakleigh

    33.3%
  2. Glenroy

    0 vote(s)
    0.0%
  3. Bayswater

    0 vote(s)
    0.0%
  4. Laverton

    33.3%
  5. Reservoir

    0 vote(s)
    0.0%
  6. Frankston

    66.7%
  7. Regional Vic

    0 vote(s)
    0.0%
Multiple votes are allowed.
  1. Singhsaab

    Singhsaab Member

    Joined:
    18th Jan, 2022
    Posts:
    9
    Location:
    Melbourne, Truganina
    Hi All,

    I have recently sold my unencumbered investment property an have access to some $800k. My next investment plan is to buy a run-down house and develop townhouse in Melbourne. I am in initial stages of my research and want some guidance in the process.
    Total Development - ~$2.5m

    Questions:

    1. Which suburb(perhaps a choice of 2-3 suburbs in my price range)? i understand the feasibility assessment is more important however i want to know the general consensus.
    2. How important is hiring a project manager? can i go solo given i do not have much knowledge of the process? Can a architect or equivalent help instead?
    3. What sort of profit margins can be expected in a similar size project?
    4. If not multiunit development, what is the best way to utilise the cash i have in property investment?

    Regards
     
  2. Tufan Chakir

    Tufan Chakir Well-Known Member

    Joined:
    18th Aug, 2016
    Posts:
    872
    Location:
    Victoria, Australia
    Answer to question 2
    Project manager would be fine after planning approval, not needed before
    Architect, can help. But you would be better with an Architect AND Town Planner working together or in the same practice. The skill sets and knowledge bases are different and complimentary. In the early stages a Town Planner would be useful helping with site selection
     
    Singhsaab likes this.
  3. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,934
    Location:
    Brisbane
    We hired a project manager for our townhouse build. We'd never built anything before but renovated dozens of places over dozens of years.

    Initially I was going to project manage the job myself with some help from a QS (I think, from memory) but thankfully we just hired someone. It was worth every cent to have someone in charge who understood the process.
     
    Singhsaab likes this.
  4. Singhsaab

    Singhsaab Member

    Joined:
    18th Jan, 2022
    Posts:
    9
    Location:
    Melbourne, Truganina
    Thank you for the input. Do you mind telling where you built? Also who was you project manager? What is their fee structure like?
     
  5. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,934
    Location:
    Brisbane
    We built in Brisbane and our build was complicated due to having to lift, slide and renovate two houses and then do the townhouse build. We could have project managed the lift, slide and renovate of the houses but their placement and timing were crucial to the townhouse build, so we just handed it all over and sat back and enjoyed the process without the stress.

    So the fee structure we had won't help you.

    I'd suggest you google or ask here for some local to your build and get some quotes.
     

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