Our W_______ Project

Hello Good People,

Firstly, thanks to all the members who contribute to this forum. Without it we wouldn't get better. I'm a fan of seeing people succeed and also trying to help others. As my dad said "pay it forward".
This forum is a perfect example of that.

I'd like to share with you our first development and watch it grow on this forum. Myself and my best mate John decided a few years ago to buy a property, sub divide and build three units (3 x 3x2)
We purchased a house in W_______ for a number of reasons and reasons we still consider to be valid today.
- 3 min Drive to the 10th Best Performing Public High School in the State (Melville Senior High)
- 8 Min Drive to Bull Creek Train Station (Easy access to Perth CBD)
- 9 min Drive to Garden City (Large Shopping Centre)
- 13 min drive to Fremantle
- 6 min Drive to Murdoch University
- 6 min Drive to Fiona Stanley Hospital (Brand New Hospital)

Now in a good market, bad market or sideways market this is impressive.

Enough of talking up W_______, here is our project.

John and I went to all the big builders in Perth to price up our development and we also went to one smaller builder. John and I are both Electricians but knew ZERO about developing. Going with the big builder seemed easy and smooth. Going with the smaller builder seemed risky and unknown.
The human brain always wants to take that easy path so we punched each other in the shoulder and decided to go with the smaller builder after seeing his previous projects (and doing some additional due diligence). He wanted to get his name out there and we wanted to turn this into something that hopefully one day supplements our income.

This so far is the greatest move we have made.

We submitted plans to shire, got our bank approval, kicked off the survey strata, submitted our tickets to the utilities and got going. Now this might all sound easy but first time around is like feeling your way in the dark. I'm sure you guys remember your first one.

We handed over to Ben Marshall from Marshall Homes and he told us you can be as much or as little as you want to be involved. Ben is the owner, the builder and the project supervisor.
We wanted to be involved as much as our day jobs allowed so could learn and help. John and I are in no way affiliated or related to Ben Marshall in case you were wondering.

Just to put things into perspective. Marshall homes arranged the demolition on 9th of May 2017 and this Monday (26th of July) our slabs go down. That's quick.
I wont release any figures until the end of the build but the arrangement we have with Marshall Homes means any money he saves we save. So far the builder is working hard for us and communication is second to none.

John and I want to produce a good product that we are proud of. We are not in the business of building a product that is poor in quality to make money. I would like any future owner to be happy with their purchase. This sits well with us.
There are too many builders with sub standard work in Perth (especially during the peak times) and some young family has to suffer the consequences The one great thing about this downturn is we get rid of this and the good builders rise to the top.

Here are some pictures. Watch this space.
Any tips, info or comments welcomed, particularly in the fitout and interior design area (colour schemes etc).

Also happy to share our experiences to date.

Thanks
Tom

 

awesome post @Tommy Batch

i am actually also building in W_______ at the moment. and your reasons are exactly similar to my own, in fact, i can almost picture some of the text in a future listing if i ever sell them.

i know you said you won't release figures, but are you able to share if you are doing villas or townhouses and maybe some expected specs/finishes?

Have you spoken with some local agents and what they say about end values?

 

I would be interested to know which streets you guys are building in, I was heavily looking into W_______ for a 3 unit site in 2015 and start of 2016 but prices kept going up too fast. I think most blocks are ~ 760sqm so if you get a 800sqm+ block you can get some really nice single storey designs.

Best of luck with the build. I hope you guys kill it.

 

@Tommy Batch thanks for sharing part of your journey.

I remember my first one back in 2005 and as you say "first time around is like feeling your way in the dark" pretty much nails it. Doesn't have to be that way but not uncommon.

My due diligence consisted of "I always make money out of property so why will this be any different"

Fortunately I did make money which equated to a 10% profit.

I also used a smaller builder that was recommended by a local REA. Turned out to be a good move also as the build was quick and to a decent standard. Builder let us move into one of the units 6 weeks before it was completed as I was renting back a property around the corner I had sold for $400 a week so a $2400 dollar saving with a few tradies coming in to finish the fit outs was worth it at the time when every dollar counted.

 

Hey Tom,

I'm a big fan of the small builder. I like it when you know who's company it is, there isn't a million layers of bureaucratic ******** to wade through to find someone to make a decision and there is personal pride in the company. Providing they are of sound financial backing I think small is better. Why pay for those sales people, layers of management, and overheads that do little to help you?

And Perthies @Tommy Batch has volunteered to organise the next get together

 

Im keen. North of the river this time

 

Thanks for all the comments, it's good to have some positive input.

To answer a few questions we are building 3 x Units (3x2) Survey Strata. Our spec finishes will be good middle of the road products. Stone Bench tops & Phoenix Tap ware to name a couple.
I have lived in Perth my whole life and the changes over the last 10 years have been incredible. With the mining boom came the good, the bad and the ugly but never have we had a better place to go out for a drink or a nice meal in vibrant pockets of Perth.

With change brings opportunity and I still consider Perth to be the greatest place to live and raise a family. I thought the mining boom exposed this secret but I still think people are yet to find us.
A few changes with local/state government and some relaxed approaches on how we enjoy our free time and do business will result in boom time again. Infrastructure will carry us forward.

I have always been a liberal man through and through but the McGowan government has impressed me.

I think market price is 450k - 480k at the moment for this product.

How does Thursday the 27th of July sound at the Balmoral in Vic Park? 7.00pm PS
Thanks Myf LOL

That's half way between north and south (East Vic Park)

 

Sounds good!

 

Thursday the 27th of July, I will book a table once we know some numbers.

 

Looks like a good project Tommy. Will be following to see how you go with the build.

 

sounds good. i'm in

 

Hi team,

are we all still ok for dinner at the Balmoral next Thursday the 27th?

 

Start a new thread so everyone can see it specifically - they won't know unless they happen to see this post otherwise.

 

Hey Jess, I started a tread last week with "Perth Catch Up" but it fell to the side. I will reuse that one now

 

Oh I didn't see that one!

 

Ah - the memories.......
Purchased my first IP's in W_______ in Harrison Street and Finney Streets during the mid 1980's.....
Same good reasons for buying as now.
Hope you do as well with capital growth over time.
Good luck

 

I can't find it. Did you put it in the Network and Meetups section?

 

Perth Catch Up - 27th of July 2017 - Balmoral Hotel - Vic Park

Placed it in the community thread. Will update in the meet up section now

 

It's been a while since I've checked in but I come with good news (well for us anyway). I'm sure your excitement isn't at the level of mine
There was a small typo in my last post, I should have said slab went down Monday the 26th of June vs the 26th of July.
We traveled on Saturday (12/08/17) to find;
- Soakwell's and drainage in
- Unit 1, 2 & 3 bricks up
- Electrical & plumbing tube out on units 2 & 3 complete
- Roof Frames up on units 2 & 3

Colourbond roof starts this week, weather permitting.

So far, so good, product looks good to date.

 

Hi all,
its been a busy few weeks with selections of tiles, cupboards, handles and benchtops. To the member who helped guide us down the right path we are so appreciative. You have an eye for detail and create some wonderful spaces for people to enjoy.

We are nearly at lockup. Woohoo.... Walls rendered, internal walls plastered, ceilings up in all units, alarm system wiring installed and wet areas prepped.

Our builder (Ben) is killing it. With all the wet weather he says its held him up but we haven't noticed. **check out his home made site dunny** Few of the tradies have compared it to working on the Ritz Carlton, luxury

A few big decisions to make......................
- Wall at the front....yes/no?. Will give unit 1 two outdoor areas plus more security
- Ducted air cond vs split systems?
- Carpets..... up spec a little?
- Lighting
- Plantar Boxes/Herb Gardens in Alfresco areas?
- Staging the units for SALE (have a few ideas on this one)
- Keep 1, sell 2, keep 2, sell 1, sell all 3.....its a hard choice to make as I think I have a relationship with them.

One thing I do know is that we have loved this process and we cant wait to go again.

Speak soon
Tom