Nollamara/Westminster/Balga Feasibility

Discussion in 'Development' started by LifesGood, 28th Jun, 2015.

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  1. sanj

    sanj Well-Known Member Premium Member

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    Excellent. Hope to hear more about it in the future!
     
  2. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Wow that is super cheap and super quick.
    Constructing 2 storey apartments in 8mths would mean going gangbusters or alternative construction.
    Don't forget it can take 2-3mths to get titles at the end.
     
  3. sanj

    sanj Well-Known Member Premium Member

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    That's what I'm saying, it's simply not possible to go from start to titles in 8 months for a 2 storey apartment complex, not unless this is some new method of construction.
     
  4. mrdobalina

    mrdobalina Well-Known Member

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    Is that the market rate at the moment?
    I guess margins will be getting squeezed when the overall market slows down. Saying that, building costs are also decreasing.
     
  5. Aaron Sice

    Aaron Sice Well-Known Member

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    typical builders margins at present are between 12% for the lower cost operators to 18-20% for the higher cost operators (the ones using finance)
     
  6. Aaron Sice

    Aaron Sice Well-Known Member

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    .....that gets to finished dwellings in 6 weeks.
     
  7. sanj

    sanj Well-Known Member Premium Member

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    Jesus has it dropped to 12% recently? Good news.

    U should see the commercial space, some are working for 5% just to keep the lights on. A lot are rubbish though. U can get good reputable firms for the 7/8% though which when u think about it is pretty damn good. I'm talking office fitouts, hospitality, a wide range
     
  8. Aaron Sice

    Aaron Sice Well-Known Member

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    i'd love to sit down with you and pick your brains about your comm side of things.

    smaller builders that don't use finance are down to about 12% - similar sentiments re the quality though.
     
  9. sanj

    sanj Well-Known Member Premium Member

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    Yeah we're well overdue a catch up, let's arrange one soon. I've been getting more involved in that space, still nothing overly major but have now sorted out 3 office fitouts (one was a whole floor brand new cbd one which was fun), got 2 major hospitality ones coming up and possibly a 3rd in 6 months. Interesting industry, works very differently to the resi side

    Some of the inefficiencies you see with many of the resi builders out there (think my mount prospect ********) would never in a million years be tolerated
     
  10. mrdobalina

    mrdobalina Well-Known Member

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    Wow that is razor thin.

    I wouldn't feel comfortable if I was a builder and was offering fixed price contracts with a 12% margin. Doesn't take much to go wrong before you're in the red.
     
  11. Aaron Sice

    Aaron Sice Well-Known Member

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    that's why a lot of them are offering cost plus at the minute, i guess?