My new Sydney development site

Just a little aside - have you checked site density's as well as site coverage as there could be a little disparity - have you looked at the DCP for the council area?

 

Yes I have. There is no density control such as FSR for this council area. They only limit the site coverage to 50% built area and the building height to 8.5m. They also limit the site to 3 buildings based on its street frontage.

Thanks,
Michael.

 

Jacque,

Sorry, I somehow missed this question early on in the piece... My current plan is to retain all three at completion, but I'm also considering selling one to pay down the loans and get the remaining two as close to neutral cash flow as possible. A lot of that decision depends on the build cost as well as the final valuation. When these numbers are less rubbery I'll be better placed to make a call either way.

At least if I sell one I can realise some cash to celebrate with a bit too. Otherwise it stays all tied up in the properties and can only be accessed with an LOC. You've got to live a little too you know. I won't elaborate on the treat we've got lined up if we pull this off, but will certainly post the details when (and if) we get there in the end.

Cheers,
Michael.

 

Just tell us one thing, is it red ?

 

Huh?? red?? No way! Better be a great holiday. ) Or am I projecting my desires from our property development???

 

Carl,

I like where your head's at, but No, its not red I've already got a little sporty red convertible, I'm thinking much more expensive this time...

Lets just say that Kay has agreed to spend 10% of the final valuation of the property on this treat, and that's not 10% of the profit, that's 10% of the market valuation upon completion!

Hehe,
Michael.

 

My guess is a something that's 35 foot or so and likes the water?

 

I really don't think property developers should be out there buying whales ;-)

 

You're good, you even picked the length pretty accurately!

But don't jinx me by spelling it out too clearly. I like it better as a "potential bonus" at the end of the day. Don't want to get my hopes up too quickly. There's a very long road to travel before I can dream that dream...

Cheers,
Michael.

 

But having the reward at the end of the rainbow makes the motivation just that little bit stronger

I'm sure you will make a huge success of this regardless, Michael, and I look forward to following your journey with much anticipation!

 

Hi Michael

What an exciting story I've read with interest. I'm at the end of a similar development and experienced the same process. I've found the process of research doesn't really change in property development. Lower the land cost by maximising GFA increases profit. Simple, huh? Yeah, right. It's a long slow process and for those with patience.

I'd love to talk to you more.

My development is finished!! Just this week, believe it or not! It's in Brisbane so I go up for a final inspection and handover next week. There are buyers who have been driving past for the last month and will look through this week (4 I think) which I'm very, very happy about.

Same as you, we've allocated an amount at the end of the day, as a reward. Mine comes in the form of bubbles, something with heels and things to match and a few other luxurious treatments. Oh, I think something that has wheels.

I've got another post so will update the progress there.

Cheers

 

Jane, are you going to Glebe on Tuesday night for our next SIG forum meeting? We will save you a seat!! Michael will be there too.
David

 

Jane,

Thanks for the support. I read your post some time back and at the time was very interested in what you were doing. I had always intended to try and replicate that process but didn't think I'd be given the opportunity to do so this quickly.

Perky is right that I am going to be at the Sydney Investor Group (SIG) meeting on Tuesday but I thought you were Brisbane based? If you are in town and come along then definately come and say hello. Most people there should be able to point me out. You can even have one of my seats that I reserved as my wife won't be able to make this one so I've got a spot spare.

Cheers,
Michael

 

I was going to comment earlier Michael, to say that I am amazed at the ($) size of this development as a first undertaking, but by the due dill you are doing, which is far more thorough than anything I ever did, I am sure it will be a huge success.
Like others, I will follow it with great interest till it is completed.

KEvin

 

Thanks Kevin!

Its funny, because as a Sydney-sider I see the $ size of this as not too significant. It'll all be done for about $1.5M which is about the same price as a nice house and land with good ocean views over Pittwater. But you're right, it is still a fair bit of mullah to do as a starter.

We met an architect on Saturday at the site and then went to the Mona Vale hotel for a beer while she took us through her portfolio and costings. She seemed really good and is a local with a fair bit of experience with Pittwater Council. We'll look at one or two more architects first, but are confident we would do well with her on our team if it pans out that way.

Moving along nicely albeit slowly. Its these first stages which will take all the time for seemingly little result. Once we get an approved DA things should pick up a bit of pace, but that's probably still a good 12 months off yet.

Cheers,
Michael.

 

MW - Is there anywhere this man isn't

Congrats on the purchase. Like everyone else i look forward to reading future updates on your plans with this property.

Congrats also on making Smart Investor Magazine - received it last night and thought.... was proud a fellow forumite made the mag!

OSS

 

OSS,

Thanks. Which issue of the mag was it in? I might have to go and pick up a copy myself for posterity's sake.

Can't wait to get started with surveys and sketches. I feel like a big kid with a really really really big meccano set.

Cheers,
Michael.

 

Well done Michael. Now you're (in)famous!

Must pick up a copy to see how much you've bulked up with all that gym work

Cheers
N.

 

Michael's in the Aug issue (page 38) and looks very relaxed and happy
Have been looking forward to seeing this article come out for you, Michael. Well done! Does this mean we now need to refer to you as the "smart investor"? Hehe.....

Some interesting picks there, too, by APM and AFR with their nine choices in the article. I can think of other suburbs in Sydney that could easily be added to that list, but I agree that the selected ones in our part of the world are traditionally strongly performing suburbs historically. I especially like Wollstonecraft for its proximity to so much that Sydney has to offer. Some of the old houses there are very special indeed.

 

Mike whats the latest on this - any news??

RJ