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Our latest Development in Western Sydney

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

  1. Be Developer

    Be Developer Property Developer Business Member

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    I had few people asking me about our latest development, instead of sending PM,

    here is some photos and details:

    Location: Western Sydney
    Project: Duplex on vacant land , 2 x 3 bedroom 2 bathroom attached Dwelling on 556Sq block
    Total cost: $860K
    Total resale value: $1.2M
    Profit: $340K

    (total cash invested 90K)


    I must say, it was crap location, on really busy road but good western Sydney suburb..
     

    Attached Files:

    Northy85, Mumbai, S.T and 3 others like this.
  2. Be Developer

    Be Developer Property Developer Business Member

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    More images

    Some of the goodies we did:

    Italian Laparto Tiles
    Stone Bench top
    Soft close vanity
    Bamboo Wooden floor
    Designer tiles in bathroom
    Double shower
    Stainless steel hand rails
    Recess in bath/shower
    Video intercom
    Remote Garage doors
    Ducted Air con
     

    Attached Files:

    Last edited: 28th Jun, 2015
    Kael and Mumbai like this.
  3. Gaby

    Gaby Member

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    duplex on a 556sqm? thought there was a minimum land size o 600sqm in the west. What type of construction costs are you looking at? You going through a builder?
     
  4. Be Developer

    Be Developer Property Developer Business Member

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    @Gaby

    I had DA approved before New LEP & DCP

    cost us $530K for construction (turn key)

    Yes , we used builder!
     
    Gaby likes this.
  5. Biz

    Biz Well-Known Member

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    So the original house cost $330k? How long ago did you buy it?
     
  6. Be Developer

    Be Developer Property Developer Business Member

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    @Biz

    It was vacant land.

    Land cost $280k...was in early 2012.
     
  7. Biz

    Biz Well-Known Member

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    it's good that you will come out ahead but a large chunk of the profit is just the market moving. I know hindsight is 20/20 but you could have even just bought a couple of ordinary 3 bed houses with the 90k and made over 400k by now doing nothing.
     
    Eric Wu likes this.
  8. MTR

    MTR Well-Known Member Premium Member

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    @Be Developer
    Thanks for posting photos etc, I recall the numbers with this project, impressive considering it was in an inferior location. Also financing this deal with 90K, wish I could do this, that is outside the square, what's the secret?

    I think buying in locations which are inferior can work well in a booming market, as there is little stock and high demand, in flat markets harder to sell.

    I also like the higher specification for the build, costs more however easier to sell and also you are giving the buyer what they want. My philosophy with developing/building is build what people want, its just common sense stuff.

    Is there anything you would do differently?

    MTR:)
     
  9. MTR

    MTR Well-Known Member Premium Member

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    Good point, this is a totally different strategy, and BTW why not do both, have a bet each way.

    The buy and hold strategy for CG only works well in a rising market, no fun holding property when the market tanks.

    Developing property means you need to up skill, however you can continue doing this in any market as long as the figures stack up, this means you continue to create income/cash flow or build a substantial portfolio etc. This operates like a business creating passive income. This also generally requires more cash ie buying, holding while developing.


    MTR:)
     
  10. Biz

    Biz Well-Known Member

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    Yes, that's why it is good to buy dev sites that make sense from day one. Its funny driving around Sydney atm, a lot of nice sites i was waiting to get going for over 10 years are now springing into action. I dont want to think what some of their holding costs would have been over that time. Deep pockets for sure!
     
  11. Be Developer

    Be Developer Property Developer Business Member

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    @Biz

    Agree with what you are saying but that's a theory.. in other words one would say i wish i would have bought 1000 shares of apples in 1999.

    3 X house means = 3 stamp duty + closing cost
    buying 3 properties can take 6-18 months


    Anyway, i did what you (just tweaked it) what you wrote above... release the equity out of land and bought 2 more development sites...

    Those development sites will be developed in few years.. as my hands are full with developments and those prop are paying itself off
     
    Gockie, MTR and Biz like this.
  12. Biz

    Biz Well-Known Member

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    Thats good mate, for sure what you are doing is going to pay off big time eventually regardless of the market rising or not.
     
  13. Be Developer

    Be Developer Property Developer Business Member

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    Please ask @Shahin_Afarin ...i buy sites.. he funds them thru lender.... one thing he says to me all the time that please buy a good site and be creative with end product. We just sign the papers and see bank approval letters.nothing more, nothing less.

    Same philosophy @MTR

    I try and make it as practical it can be.. choose finishes as if i am going to live there. look for bargain on finishes (tile, bathtubs,shower screen, kitchen)

    i personally focus on Bathroom, kitchen and good lay out of dwellings.. those 3 things alone sells end product like hot cakes, regardless i am building for me or clients.

    Yes, Buy location.

    Every prop i purchased for me or client.. location is MUST box to be ticked.

    All my current site has excellent location... school, proximity to transport.. good pocket in area.. is a MUST for me.
     
  14. Be Developer

    Be Developer Property Developer Business Member

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    it was experience and skill that i developed.

    for me it is priceless and will stay with me till grave!
     
    S.T and Biz like this.
  15. Egga

    Egga Member

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    Good work, there are so many things to learn on the developement path, you will get better after each one.
     
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  16. MTR

    MTR Well-Known Member Premium Member

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    Omg that dog, is it a French bull dog, too cute. Sorry back to thread I am doggy mad:)
     
  17. Mumbai

    Mumbai Well-Known Member

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    What was the frontage for the land?
    Is it not possible to build two duplexes on a 556sqm in western Sydney anymore?
     
  18. Be Developer

    Be Developer Property Developer Business Member

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    @Mumbai

    It was 15.29 meter.

    I think council is pushing for one dwelling only on such blocks now..
     
  19. Mumbai

    Mumbai Well-Known Member

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    :mad: . I had been thinking to get mine done next year.
    Did your builders assist your with the DA?
    Can you share your builder's details. Pm me if can't share publicly.
     
  20. Kael

    Kael Well-Known Member

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    I second this... If you can release the builders details, I'd love to find out. If not, all good! Mum is developing an IP in Western Sydney also and is looking for a builder.