Townhouse development diary

Hey folks,

I thought I'd start this thread to act as a bit of a diary for a new project. Hopefully someone can gain some insights from it. If not it's a good excuse to document it anyway. Project particulars:

4700m2 site
1 house (needs demolishing) could possibly rent out for $200-250pw although it's in quite a bad state
Zoned R2
FSR 0.6 - this is good as the other 0.4 will be taken up by flooded impact zone
Net developable floor area - 2800m2
Flood impacted
Expected yield - 12-19 units, depending on flood impacts
27% margin @ 12 units
41% margin @ 19 units

 

Where is it @g-dub ?

 

@g-dub Not a small project - have you done a few of these before?

Interested to follow how this goes.

 

Hunter Region

 

1st project but have worked in the industry for a few years - 10 years consulting/project management experience from feaso to practical completion.

Thanks I'll try and keep it updated weekly at the very least

 

Off my radar but will watch with interest.

 

All the best, keep PC posted, I am certainly not in this league but keen to watch and learn

 

There are a lot of items to tick off under the DA requirements. I put together a quick table to help define the roles and define who will take care of each part/engage subconsultants.

There will be 4 primary parties involved in the procurement of services and collation of the DA:

Me
Civil engineer
Planner
Building designer

DA Requirements Breakdown by g-dub posted 6th Oct, 2016 at 1:01 PM

 

Interested in the funding side? are you funding this yourself, some big $ here.

I have found funding projects the most challenging, especially when you have other projects on the go etc.

 

JV with an equity partner. I'm not fully across funding at the moment as I'm focusing on delivery at this stage.

 

Many years ago I would have poo pooed JV partner, but not today, I can see so many benefits if the right project comes along and of course you have a JV partner that ticks the boxes.

 

@MTR

I think it's a great way to run a project with mutual benefits. No that it's without it's risks! I'm happy to take them on in this instance.

Cheers

 

... and getting the right legal advice/docs in place.

I know nothing about the Hunter Region, is it currently a strong market/demand for your product??

MTR

 

Depends who you ask lol...I've seen a few posts on PC throwing it under the bus, others are a bit more positive. I'm part of the latter!

 

LOL, forums are hit and miss IMO.... the truth can only be obtained when I actually speak to the re agents on the ground, and not one but many and then it is relatively easy to work out what product is selling and how long it takes to sell.

My thoughts - because Syd market has been booming there could possibly be a ripple effect to other areas, regions etc.

However, what I think we are seeing with the current boom markets in Syd and Melb they are not repeating what happened in previous boom cycles. I find this interesting, the strong markets today have been due to a major factor, immigration and its not started in the desirable inner city areas but either affordable areas with good infrastructure or areas which have desirable school catchment.

 

G-dub have you completed a feaso my friend?

For our learning experience can we have a look at the detailed feaso study to see how you arrived at those numbers. Appreciated.

 

@PacMan

19 townhouse @ 135m2 floor area * $1800/m2 = $4.6m construction cost
$200k consulting
$500k additional site and headworks
$750k purchase
=$6m

Sell $450k * 19 = $8.5m

 

Interesting project mate.

What about stamp duty, contingency, holding costs, selling costs

Also your total costs above are $6,050,000 according to my calculator .

 

SD - 30k
Holding - 70k
Contingency - built into the allowances
Selling costs - I'm not 100% at the moment. Equity partner has an accountant lined up to sell through off market to his clients

@Leo2413 nice avatar!

 

Am following with interest mate, all the best.