Do you know what it costs to put drains, roads, power and water. .
Do tell!
Quote:
The reason their costs are now higher is to pay for the extra infrastructure charges brought to any specific region as a result of the extra population eg roads
Do tell! In Victoria the government still wears the cost of extra infrastructure. The greenfield developer pays zip.
For what it's worth I have spoken to someone who has drip fed land for the last 30+ years in victoria. I bought one of his blocks to subdivide and he was quite helpful in advising the pros and cons of which block to do it with - we spoke for a couple of hours.
He is a no bullshit type character and assured me his cost of development is 30-50k all said and done.
For what it's worth I have spoken to someone who has drip fed land for the last 30+ years in victoria.
I bought one of his blocks to subdivide and he was quite helpful in advising the pros and cons of which block to do it with - we spoke for a couple of hours.
He is a no bullshit type character and assured me his cost of development is 30-50k all said and done.
Mel that's like asking a car salesman what his wholesale cost is.
Mel that's like asking a car salesman what his wholesale cost is.
I can absolutely appreciate your comment - i would be thinking the exact same thing if i read it here. I had already put down a deposit so the sale was assured.
He chewed my fucking ear off for a good 2 hours and found it very hard to get away from him
You would have to meet this person to understand.
APF - a place where serious people don't take themselves too seriously. There's nothing else like it.
For what it's worth I have spoken to someone who has drip fed land for the last 30+ years in victoria.
I bought one of his blocks to subdivide and he was quite helpful in advising the pros and cons of which block to do it with - we spoke for a couple of hours.
He is a no bullshit type character and assured me his cost of development is 30-50k all said and done.
Mel's a man of distinction, the rest are wet behind the ears!
This guy would have paid the equivalent of 2k to 3k per block 30 years ago, but a heap more than that in cost incured sitting the land. It's a question of whether the capital growth makes it worth it.
Easily 25k per block for somebody large scale enough......where's Pete's hot denial!!!
If capital growth has died, these guys will sell up faster! :pop:
This guy would have paid the equivalent of 2k to 3k per block 30 years ago, but a heap more than that in cost incured sitting the land. It's a question of whether the capital growth makes it worth it.
If capital growth has died, these guys will sell up faster! :pop:
You might be right, Count. Some of them are loaded and things have worked out for them quite well so far. Who knows what they might do down the track - I got feeling the bloke i mentioned will most likely pass the rest of his holdings on to his kids before he ever dumped the whole lot.
I guess the question is what will his kids do with it, given they don't have the same level of emotional attachment?
Do you know what it costs to put drains, roads, power and water. I'm not arguing about the gouge but I think development costs are quite high and the biggest gouge there comes from local councils,water and electricity providers. The reason their costs are now higher is to pay for the extra infrastructure charges brought to any specific region as a result of the extra population eg roads. I still can't work out how land up my way jumped from 19K to 200+K in 10 years though although I think the councils are probably the main suspect.
For what its worth my cousin completed a 17 lot subdivision about 8 years ago. (TAS) Level land but entirely unimproved required roading, kerbs, guttering, paths, underground power, sewerage and town water and these cost averaged $25k per lot. This would be considered a very straightforward subdivision i.e. encountered no real obstacles, good access flat land. He is an accountant and kept good and accurate records so I trust these figures albeit now somewat dated.
I can absolutely appreciate your comment - i would be thinking the exact same thing if i read it here. I had already put down a deposit so the sale was assured.
He chewed my fucking ear off for a good 2 hours and found it very hard to get away from him
You would have to meet this person to understand.
Hard to say really. I've been in the building game for 22 years and funnily enough have never really known. The figures you hear differ from time to time but I know a backhoe operator with driver costs anywhere up to 500 per hour and some other machinery even more. One of my mates told me a single kilometer of dual lane road can be quoted at a million dollars. The same thing there he is someone I know and trust and it's his job. If you add it up it would be a horrendous addition to the divided cost of each block. Builders work on minimum 20% margins so you would expect developers to be around there as well. That is 20% in slow times and moving up from there depending on demand.
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