I thought I'd share some details of my first subdivision, which I'm happy to say will be ready for council appro in the next few weeks. The house was purchased last July in Bayswater as one part of a strategy to utilize the lazy equity in my last home. It was a retain and subdivide with the bonus of a 3 x 2 fibro house that would work as a PPOR while I subdivided. Other than a full interior and exterior paint which was done prior to us moving in, the house was/is very livable (each room had been painted a different colour in suede effect ) with 2 living areas, mostly timber floors and generous bedrooms though the next owner is able to add value further if they wish. The project is mostly on target with delay only due to fencing and retaining walls going overtime. I decided very early on to employ a project manager, although I have owner built a couple of times, I felt I needed their experience to ensure my first project was successful and to limit stress so I am able to rinse and repeat once a year for the near and mid future. I have resigned myself to the fact I have never lasted long as an employee and this will be income replacement and allow me freedom as I have other pursuits. I have included photos of to the house when I purchased it and now, with the fence nearing completion but prior to the back deck and landscaping. I will post the finished project in a couple of weeks including the back block. Happy to share more info! View attachment 479 View attachment 481
Hey mate, Do you mind sharing other details? such as Buy Price: Subdivision Costs: End Value for subdivided Lot: End Value for retained House: Planning to keep both? Would be much appreciated, Jamie_
Sure Jamie, $760K + $35K purchasing costs $15K painting + minor work front house $70 - $75k approx sub costs inc project management & extra retaining cost due to the elevation $610k - $630k front house end value $370 - $380k block end value Both will go on the market towards the end of Aug - I will put a range on the price and sell them myself. I will meet the market rather than hold but all indications this is a high demand area (near Meltham St) I will make a profit most likely around $100k and less will not bother me especially if all goes smoothly with the sales process. These photos are the ones meant for the first post!
Thanks for sharing and well done on your 1st project. Did you do any numbers on building on the vacant lot and extracting more value from it?
I did, but it was the creation of the block where the profit lay. In addition the extra risk, time needed and funds required, which would have been a problem, especially now I'm "unemployed"
Thanks! The only problems have been relatively minor (such as full cost of retaining on one side as neighbor would not go 50%. All other costs of removal, retaining, new fencing has been shared. Using a project manager was crucial for my first sub and maybe the next!
How much of this cost were elevation cost? Congrats on the tidy $100k or so profit, in a short timeframe.
When developing, always factor in 100% of all fencing and retaining. Neighbours are quite within their right not to share the costs if the fence is fit for purpose. And if not they will usually fight you to the end.
Thanks, but not actualized yet!! The block slopes gently up. Retaining cost, including full share of RHS & 50% of the other 2 sides amounted to $11,700 plus a little more cost in removal old retaining/fencing. This extra cost should be covered in a better sale price due to the elevation and outlook, hopefully!
My PM provided fencing letters to my neighbors referring to the divided fences act. Mostly the original fences were in fair condition, asbestos but were not on pegged boundaries with most poorly retained and leaning heavily into by property.
Just showing up to say thanks for posting the pricing Please keep up updated on issues / timeframes etc I look forward to August and the sale
Thanks Stock, will do! Landscaping and back decking this week then it'll be ready for council approval. Btw, the back strata home two doors down sold at first home open for $635K, a good result and encouraging
