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Upper North Shore Development

Discussion in 'Development' started by Shahin_Afarin, 5th Jul, 2016.

  1. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    641
    Location:
    Sydney
    Plan is to have 2 projects running in any fiscal year so as the Baulkham Hills project is heading to the finish line its time to start another couple of projects.

    What is it?

    1000sqm block on Sydney upper north shore

    Very tired looking 3 bedroom 1 bathroom house

    Approx 20m frontage

    The Development:

    We exhausted every possible avenue, affordable housing, over 55’s, etc but couldn’t develop it due to the tight ku ring gai council restrictions (which in some way is a good thing as it severely limits supply).

    Since the frontage is quite large we are doing a street facing new build with a detached secondary dwelling both facing the street.

    The main dwelling is 4/5 bedroom house.

    Secondary dwelling is going to be open plan, high ceilings, etc.

    Numbers:

    Current Value: $1,600,000
    Current Rental: $750 per week
    Current Debt: $660,000

    Construction Cost: $1,000,000
    Holding: $100,000
    DA/CC: $40,000

    EMV on Completion: $3,000,000-$3,100,000

    1st Dwelling Rent: $1,500 - $1,800 p/w
    2nd Dwelling Rent: $650 p/w
    Depreciation: $30,000 - $40,000 p/a (need to verify this figure)

    Total Income: $136,800 p/a

    Loan Repayments: $6,750 p/m
    Misc: $800 p/m
    Insurances: $150 p/m
    Council Rates: $200 p/m

    Total Expenses: $94,800 p/a ($137k based on purchasing the property)

    Surplus: $42,000 p/a

    Still at concept stage and still a few weeks away from finalising the plans but I have attached the concepts as to the high level vision of what I'm trying to achieve.

    Re the theme - I'm opting for a georgian theme based on the area and the demographics.

    Classical-3.jpg Classical-4.jpg
    Plans.png
     

    Attached Files:

    SOULFLY3, Blueskies, Biz and 5 others like this.
  2. AceBuild

    AceBuild Member

    Joined:
    19th Jan, 2016
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    14
    Location:
    NSW
    Hi Shahin,

    Well done, the concept plan looks great and spot on with the area and demographic.
    Excuse the newbie question but does this mean that both dwellings will be on one title?
     
  3. alexm

    alexm Well-Known Member

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    Location:
    Sydney
    Nice one. Something a little different.

    Chat soon.
     
  4. bob shovel

    bob shovel Well-Known Member

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    Wow very nice!

    The photos remind me of Chateau homes that build around that area. I worked on quite a few years ago doing the gyprock, lots of bulkheads, high ceilings and fancy cornice. Will look awesome
    All the best!
     
    Shahin_Afarin likes this.
  5. House

    House Well-Known Member Premium Member

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    13th Sep, 2015
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    Location:
    Sydney
    @Shahin_Afarin looks very good! Thanks for sharing the figures too and hope you'll update the thread as you progress. How long was the process to get something like that approved in the area?
     

    Attached Files:

  6. neK

    neK Well-Known Member

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    Location:
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    So is this a knock down of the existing house and rebuilding two houses?
     
  7. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Location:
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    Yep knockdown and rebuilding.

    Ace - its 2 dwellings on a single title. The dwellings cannot be subdivided and thus sitting on their own titles.

    House - I'm doing this via complying development - it would take months and months to get approval from Ku ring gai with a number of silly conditions.

    Complying development takes a few weeks and then we commence tendering and CC.
     
  8. MTR

    MTR Well-Known Member Premium Member

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    Location:
    Perth, Melbourne, USA
    Shahin loving the facade

    Assuming you won't be selling, great cash flow:)
     
  9. jasmine 817

    jasmine 817 New Member

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    Location:
    sydney
  10. Brady

    Brady Well-Known Member

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    Location:
    Adelaide, SA
    Thanks for sharing again @Shahin_Afarin

    Is the current value $1.6M the purchase price?

    Assume your original plan was to develop, was this always the Plan B as a cashflow play?
     
  11. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
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    Location:
    Sydney
    Hi Brady,

    No we purchased the property in 2009 and it was an owner occupied property. Its currently a small house and the council is notoriously anti development which is a good thing in some ways as the level of supply is always going to be low regardless of the market.

    It just made sense numbers wise to build and build 2 dwellings and just less headache than dealing with the endless issues of older houses (not that new dwellings don't have issues too).

    Here are the front and rear elevations - aiming to have DA/CC done within the next 4-6 weeks and then commence construction first quarter of 2017.

    VSG.png
    VSGR.png
     
    Brady likes this.
  12. Azazel

    Azazel Well-Known Member

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    Location:
    Brisbane
    Looks awesome, good on you.
    Where was the house in the picture located?
     
  13. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    Location:
    Perth
    2 projects per financial year. Sounds like a good target :)
     
  14. Brady

    Brady Well-Known Member

    Joined:
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    Location:
    Adelaide, SA
    Great looking place, will be following as usual :)