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The mystery of Stockland
Topic Started: 28 Aug 2012, 12:58 PM (9,823 Views)
mel
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mango66
29 Aug 2012, 04:53 PM
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.
This has been a good thread.
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APF - a place where serious people don't take themselves too seriously. There's nothing else like it.
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mango66
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skid row
29 Aug 2012, 04:32 PM
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.
How much was his blocks of land selling for. That sounds like a reasonable cost . As I posted before about 10 years ago fully developed land here was about 19-25 K . Work that out. What would be the development cost back then let alone the land value. Move forward 10 years same blocks are 230K. I know in 2008 a developer here knocked 80K off his block prices literally overnight so it's probably safe to say there's a good margin in land obviously depending on the buying price to the developer. Ive got a builder mate and Ill see if I can get it out of him what his current costs are. Might have to get him drunk.
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mango66
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mel
29 Aug 2012, 04:58 PM
This has been a good thread.
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That's it . I'm off to my mates house to go and get smashed . That beer looks good mel :D
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mango66
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skid row
29 Aug 2012, 04:32 PM
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.
Are yo a fan of skid row?
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Count du Monet
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but I know a backhoe operator with driver costs anywhere up to 500 per hour and some other machinery even more.


If I hire somebody to come and dig a 6 foot grave for my latest murder victim, yes. If I contract somebody to dig trenches for an entire development....then no.

A large scale and very boring development could be done for 30k a block. If you want a nicer more interesting development, that costs extra. They can build you a 16 sq house for 130k in a development area. If you want a nice one, that costs extra. You can double and triple the price of a construction real easy depending on what and how much is put into it.
The next trick of our glorious banks will be to charge us a fee for using net bank!!!
You are no longer customer, you are property!!!

Don't be SAUCY with me Bernaisse
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skid row
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mango66
29 Aug 2012, 05:04 PM
How much was his blocks of land selling for. That sounds like a reasonable cost . As I posted before about 10 years ago fully developed land here was about 19-25 K . Work that out. What would be the development cost back then let alone the land value. Move forward 10 years same blocks are 230K. I know in 2008 a developer here knocked 80K off his block prices literally overnight so it's probably safe to say there's a good margin in land obviously depending on the buying price to the developer. Ive got a builder mate and Ill see if I can get it out of him what his current costs are. Might have to get him drunk.
Well including the land value the improved blocks owed about $48k each. He developed all the lots and sold them as house and land packages from $275k to about $340k. Good size blocks flat land quiet street cul de sac at end the blocks would have readily sold for $100k to $110k but certainly not much more so potentially about $50k profit per lot.
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mel
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mango66
29 Aug 2012, 05:10 PM
That's it . I'm off to my mates house to go and get smashed . That beer looks good mel :D
i just re read the thread - sorry Mango i jumped the gun there for a moment. I was half expecting to get flamed for posting hear say i guess!
APF - a place where serious people don't take themselves too seriously. There's nothing else like it.
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peter fraser
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Count du Monet
29 Aug 2012, 03:28 PM
Do tell!

Do tell! In Victoria the government still wears the cost of extra infrastructure. The greenfield developer pays zip.

That is incorrect, the developer pays all of the direct costs including roads.

The extra infrastructure you refer to are costs such as hospitals and schools, policing, fire brigade etc, but that would not be needed on every subdivision. The local council gets an immediate cash flow benefit in rates, and the state governments gains in property transactional duties.



Edited by peter fraser, 29 Aug 2012, 09:50 PM.
Any expressed market opinion is my own and is not to be taken as financial advice
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mel
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peter fraser
29 Aug 2012, 09:45 PM
the developer pays all of the direct costs including roads.


Good call Peter. They pay for absolutely everything and it isn't cheap by any means.
APF - a place where serious people don't take themselves too seriously. There's nothing else like it.
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Count du Monet
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mel
29 Aug 2012, 10:28 PM
Good call Peter. They pay for absolutely everything and it isn't cheap by any means.
And a single house blocks share of conduits is about 25k. It can be done pricier if you like it that way.
The next trick of our glorious banks will be to charge us a fee for using net bank!!!
You are no longer customer, you are property!!!

Don't be SAUCY with me Bernaisse
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