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St Marys TH Development

Discussion in 'Development' started by Shahin_Afarin, 17th Jul, 2016.

  1. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    The first Penrith development was a sell out and so easy to do so I have purchased another raw site with plans to build 6 x 2 bedders. I have been looking for months but all sites are massively overpriced but this one was too good to pass up.

    I didn’t find this site by accident – I send a lot of time on the net and I have researched specific areas for a long period of time but in turn when something of value comes up I can jump on it quickly with confidence.

    Site came on the market Thursday night and I went out on Friday morning and wrapped it up. I checked out the site with the architect and council whilst driving there (it was a good 50 minute car ride).

    Most likely to develop under the Affordable Housing Sepp so we can do 6 units instead of 5 units via the council DCP. We are also doing the box style design instead of the attic style as PC just changed their policy.

    There is a house on the site so will rent it out until we get DA/CC and are ready for construction.

    I’ve negotiated a 4 month delayed settlement and 5% deposit which is good.

    Will post the progress as we go along but it’s going to be a 18-24 month project.

    Purchase/closing costs: $900,000

    Holding: $100,000

    DA/CC/MISC: $100,000

    Construction: $1,150,000

    Sales @ $480,000

    We are at concept stage but I have attached some plans – still far from being complete or final plans. We need to increase the bottom floor and decrease the top slightly but we can't go too big on the bottom due to the FSR limitations. Also since the walls are not overlapping we are looking to do cladding on top to minimise the need for support beams and thus additional construction cost.

    Plans.png
     
    Brian84, John_Syd, ross100 and 17 others like this.
  2. Jerry O

    Jerry O Well-Known Member Premium Member

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    Thanks for sharing Shahin.. i'll be following this post.
     
  3. Ash

    Ash Well-Known Member

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    I am also tapping on this one .
     
  4. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    $500K target sales will sell fast. Smart move to find that price point / density combination.
    "OTP Offers over $480K" as a sales strategy ?
     
  5. MTR

    MTR Well-Known Member Premium Member

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    Shahin, excellent, bread and butter areas, can't go too wrong. A very sweet spot for FHB and investors

    What is the end plan? any keepers

    MTR
     
  6. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Hi @MTR plan is to sell of them and put the proceeds into the next project whatever that may be (too far too plan now). At this stage I'm just holding onto A+ stock and as I have hit my land tax threshold.

    If I wasn't busy in Sydney then Melbourne would be my next spot and I would hold some stuff down there.
     
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  7. bdydrp

    bdydrp Active Member

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    You stole my land to develop...hahahhah
    Good luck with the project.
     
  8. devank

    devank Look, lets just get on with this, ok? Premium Member

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    Is there any chance you can brake this down?
    I'm keen to know the architecture cost.
     
  9. MTR

    MTR Well-Known Member Premium Member

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    Good strategy.
    I have sold all developments completed, I am now looking at keeping 1 with my next development and start accumulating.

    The only down side to Melb is that rents are not as attractive as perhaps Syd market, perhaps this market will play catch up.

    MTR:)
     
  10. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    @devank still early days as we don't have the CC plans or the hydraulics done.

    The way that I approach construction is that I want my builder to do absolutely everything turnkey. The single they don't do is the window furnishings which I'm ok with. Everything else is included - so although I can't give you a breakdown - I can give you a summary of what I'm including in the construction cost of $1,150,000 which hopefully will help answer your question:

    1. Construction of building (90sqm + 20sqm garages x 6)
    2. Demolition
    3. Site Clearance
    4. Fencing
    5. Retaining Walls
    6. Higher end finishes (40mm bench tops, floor to ceiling tiling, ducted air con, etc)
    7. OSD and Hydraulics (this is a bit of a variable as it will be dependent on the number of pits required, easements required etc.
    8. PCA (I prefer to my builder to use their PCA)

    This is a high level list from the top of my head.
     
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  11. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Latest update - DA drawings done and we are now commencing hydraulics, structural engineering and BASIX drawings.

    Latest Plans and Render:

    Plans.png
    Render.png
     
  12. devank

    devank Look, lets just get on with this, ok? Premium Member

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    Roughly how much does draftsman cost for six units?
     
    Last edited: 29th Jul, 2016
  13. Zak

    Zak Well-Known Member

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    Would you be able to advise how you find the right builder with the right build price for your site?
     
  14. bdydrp

    bdydrp Active Member

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    Without doing my own research, developing under the affordable housing scheme, i take it this mean sale prices cant exceed a certain value?
     
  15. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    @devank here is a breakdown:

    DA: $13,200
    Hydraulics: $2,200
    BASIX: $2,200
    Landscape: $1,500
    Structural: $3,000
    Survey: $1,000

    All up about $25,000 but this doesn't include CC drawings, strata plan, s73 plans if required, WAE's, etc. Add another $25k for all this.

    @Zak Trial and error. I have used different builders on a couple of projects and found a lot of issues. Just refined the process each time because I knew what to look out for. You don't know what you don't know and as such you can't include this which you have no idea even existed.

    The key is to ensure that the building contract is water tight.

    @bdydrp affordable housing allows for a higher FSR but you need to retain 20% of the dwellings for investment so in other words one of the 6 dwellings built must be used as an investment for 10 years. There are no restrictions or covenants on price.
     
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  16. RetireRich101

    RetireRich101 Well-Known Member

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    In 2013 I have had the opportunity to pick up one of these 1000m2 R3 sites in "city" named streets in St Marys for high 300K or low 400K, and on-sold to Shahin for 900K. :p

    This is an example how development sites grew more than a regular buy-hold site.
     
  17. bob shovel

    bob shovel Well-Known Member

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    That used to be such a nice area. Good decent working area. Now there's a Large number that "work" for centre link.

    Are they planning to do up the main street in at marys? Its in desperate need of a face lift
     
  18. RetireRich101

    RetireRich101 Well-Known Member

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    the time you moved to wild wild west and now, the shop front hasn't changed much. I was there about 2 months ago when I handed my keys to my selling agent at St Marys R&H
     
  19. bob shovel

    bob shovel Well-Known Member

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    Actually i remember reading the contractor they signed the job to went bust before starting.
    St marys to boom on!
     
  20. devank

    devank Look, lets just get on with this, ok? Premium Member

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    For some reasons, I thought those architectural designs/plans costs about 40K. Possibly from the BeDeveloper classes. Did I get that wrong??