Cost of building 3 x Townhouses after knockdown

akchugtai · Jan 18, 2024 7:12 am

Hi All,

1st time poster. looking to build 3 x townhouses after knocking down my current home. Have the option to sell the property as is for 650-670k or build townhouses.

1stly getting builders to provide quotes has not been super easy. a few builders have taken the plans but no quote has been received.

Early estimates from builders are preparing me for 700-750k for build cost, 25-40k for knockdown and 30-40k for landscapping. overall turkey is around 800-850K.

For a total build area of 44sq, the price seems very high and I am questioning if the project is even feasible to build. looking at recent sales in the area, the most i can sell all 3 for is 1.4-1.5M before tax/agent costs. on paper, i am hardly breaking even or even losing money if I build.

Any suggestion or insights highly appreciated. If anyone is currently or recently completed a similar project in Hume Victoria can provide better insight to costs.

Thanks
Like ⋅ Add a comment ⋅ Pin to Ideaboard ⋅

Like ⋅ Add a comment ⋅ Pin to Ideaboard ⋅

ponzutwo · Jan 18, 2024 3:54 pm

multiple occ properties are always billed by trades at a premium, rarely per sqm for the lot. You either have trades you know whoe will do by sqm or youre going to get stung. Everyone wants to grease their palms in development. And for most part, you dont have an option as somone who isnt already in the game. its possible your napkin feasibility study gives you the answer you need