Noble Park - Numbers do not add up?

Hi All,
I'm after an investment in Noble Park area - buy the land, build TW - sell and move on.
Have checked multiple sites available and the market in the area and the numbers do not add up.
Is it only my figures?
Real example - 900m site, with plans for 4 TW.
Land Selling price - looking at the market will be ~900K
Building cost - 4TW 150SQM each ~400K each (just took averages from BMT)
Cost - total = 2.75M (included 10% contingency).
It means- each TW need to be sold ~700K for breaking even.....
These days TW in the area 3br ~600K......
What am I getting wrong here?

Thx!

 

GST, Income Tax, Interest, Council fees and permits, designs, stamp duty, land tax perhaps, legals, subdiv costs, water & sewer connections, footpaths, fencing, landscape, driveways, power, strata, title changes, surveyor, trees and clearing, waste and tipping, ....Lots of things

Who draws up a $3m business plan on a coaster ?

 

Spot on....but think that my question was misunderstood....
I'm not after the biz plan of the project. have done such projects and familiar with that.
The question is in regards to the very very basic profitability of such project in Noble Park these days - that even within the very high level and pretty conservative figures - cannot see where the profit is coming from....
So yes - easily 2.5 to 3M project - but where is the profit?
Or the simple conclusion is that Noble Park these days suits only builders

 

Maybe only suits builders (internalised profit), or existing landowners (ignoring the value of the land). Looks very thin...

 

The build cost per townhouse seems to be double what it should be, 4 on a site @ 150m2 expect closer to 800k rather than 1600k. Is it a flat block or massive slope across it?
Depends on what level of finish etc but for Noble Park would only be aiming mid level at best.

 

$400k to build is way too high.

 

Perfect post

 

Construction is way out that's why

That being said, opportunities in Melbourne are getting more and more rare.

I do at least 10 feasibilities at work per week (large scale projects) and most of them do not stack up.
Smaller projects are even harder - lower margins, harder debt financing, sensitive contingencies & competing with builders who do not apply margins more so to keep the cog going etc. just to name a few

 

thx to all. getting few assessments from builders within a week time. will update if anything interesting for the forum.
indeed, using cost per SQM of ~1600 seems to make the figures look "reasonable" - but not more than that.

 

Your cost per townhouse should be $200-250k not $400k.

$400k should give you quality 25-27sqm townhouse.

 

Hi,
So more details - upon actual plans / land.
Overall there are plans for 3 TW. 3,3,2 bedrooms, 140,150,100 sqm (area) each - including garage and porch. Is it still reasonable to assume up to 1500$ per sqm?

Thx!

 

The gravey train will eventually stop, always does when we approach peak