Wow Melbourne likely to out perform Sydney this Cycle

Assume your asking me on number 6...

$459k sale price
$8.8k sale com
$0 marketing
$133k land
$178k build
$4k stamps
$4k finance
$2k rates & elec

$130k profit pre tax
I purchased this as an investment to hold, I was planning on renting out on completion, but as it neared completion I decided to sell to assist funding my ppor development which is increasing in cost and was not known at time of purchase. Therefore IMO this investment is subject to CGT and as held for over 12 months is eligible for a 50% discount. (Note: in all my deals in the past where I have intended to sell from inception I have purchased in a Pty Ltd. Where I intend to hold as an investment for the long term I buy in personal name or trust).

At top tax rate this would be about $100k net profit after tax for an investment of $35k capital. For someone on a lower tax rate this would improve.

 

I can't believe how cheap your build costs are....i assume that includes site works, infrastructure costs, landscaping, total fitout etc ??

 

Good stuff is it a 4 beddie?

Nice work.

 

Yep 4/2/2

 

Hey mate...here are my Arcadia officer numbers:

1. Land 289sqm (160sqm 3x2x2) - $144k - up market specs 9 foot ceiling, stone, downlights, etc.
2. Build without landscaping, A/C (evap), and driveway - $165,800
3. Landscaping, A/C, Driveway - $9,000

so total is about 319k

What do ya think it will be worth on completion ...I was thinking around $450k...do you concur?

 

Nice that is pretty cheap for a 4 beddie.....up to 480k there....

 

No I left all that stuff out to make my figures sound better.

Yes it is turnkey included landscaping, blinds, driveway, letterbox a partridge in a pair tree.

I could have built for less if I'd removed downlights, stone, eaves, tile selection base, shower niches etc etc. but before you ask me, no you can't use my builder. They only build wholesale for me due to relationship. In fairness this build identical would even cost me $5-8k more now as prices have increased.

 

Pretty close to the freeway. Acoustic wall but still noisy. Plus land component tiny.

 

Aha...I get so very good price.....indeed....

 

O

officer yep is say so. I recon a 4/2/2 there is $520+

 

It it s 3x2x2...so definitely not 520k...do you think 450k -470k is achievable?

 

Sorry that's what I meant. Given a 4/2/2 is $520+
I reckon a 3/2/2would be $450+

 

Ok...let say what the valuer says on completion....even at 450k...that is 130k in about 9 months......perhaps more.

 

So how much would an average bear on the street expect to pay for the same scope without a relationship you reckon? And is your builder a small operator or one of the larger spec home builders...no names necessary.

 

Easily.. had an agent go over mine recently, similar spec, slightly smaller land component and indicated 450-470k.
Will owe approx 332k finished.
It's currently at lockup stage.

Very tempting to sell, but I think there's more growth in this market.
Had originally planned to rent it.

 

So had I, but I have two renting in Pakenham and one just finished in Beaconsfield that is about to get rented, and now am about to start construction of ppor development so I could do with the cash of selling brand new in Pakenham.

I think there's another 12 months in this land market with pop growth, but sometimes it's better to sell when new.

 

I also build with Simmonds. Same spec would prob cost $10k more, and not include blinds driveway or landscaping. So $25k more. But it's a slightly unfair comparison and Simmonds do a bit better look than him and a lot better selections.

This builder builds around 400 homes a year but doesn't advertise. Just builds to sell to investors through different channels.

 

Yeah so you've still got plenty in the market out there

Yeah if I sell it'll be brand new to maximise sale price. If not I'll just my take cash out and it can sit there for 10 years. Will have minimal holding costs.

 

Still dirt cheap though. A modest 4x2 in the GC supposedly costs more than 350k start to finish. Why??? It's hard to find a cheap/fair( but good) builder

 

Yes that's true. I have to take some money off the table in order to settle the 5 deposits I have out on vacant land blocks, and in case any of the 2 vacant land on sales fall over and leave me settling... oh yeah and I bought a commercial
Property OTP that settles in 2019... oh and a deve site that settles in 9 months. It's getting hard to keep track of everything. Good to take money when I can to ensure I haven't over committed when it comes time to settling.