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underestimate on profit. You need to get
your numbers right.
“We probably had a couple of costs
that blew out a bit more, but we had
“We were confident with the builder
and we could see that he’d been building
in the area for the last 25 or so years.
“They just knew what they were doing
and they knew their costing down to a
T. We could see the properties they’d
built before and because we lived on the
development site we were there for any
questions the builder had.”
¿ AMENDMENTS AND
“We decided on two, two-bedroom,
one-bathroom, single-garage units
on the land at the back of the site,”
“When the DA application was
submitted we had problems trying to fit
enough parking space on the property.
“When dealing with medium-density
developments (upwards of four units)
you’re required to have 1.5 parking areas
“So we needed four garages and two
extra parking areas for visitors.
“We already had one out the front and
could have made that two but the space
between them wasn’t to regulation.
We needed one at the other end of the
site. We were already trying to fit two
units on a smaller block but with some
adjustments we were able to make one
unit have a double garage and the other
a single garage and therefore achieved
extra parking spaces and a reversing
space, which the council decided they
were happy with.
“We also had issues with needing to
stay off the sewer line, which ran right
along the back fence.
“We had to design the units to run in
line with the sewer line to be able to
gain the most space. If we encroached
onto the sewer line it would have needed
to be encased which could exceed
expenses of up to $10,000.
“It’s important for people getting into
development to know that just because
you’ve bought a big block doesn’t mean
it’s plain sailing. You have to ask ‘where
is the sewer?’
“Our sewer was running along the back
fence but we had to come back off it
by 1.5 metres which meant we had to
design the two new units to deal with
that and still get the maximum floor
space for the development.
“As you can see on the plans the last
unit has a very straight side wall, this
is running 1.5 metres off the sewer line
but because we designed it to have
a bathroom and laundry off it and not
bedrooms, it doesn’t seem so strange
and because the pergola area cuts into
it, it breaks it up and most wouldn’t
realise what we had to do.
“We also wanted to gain extra space
and at the rear of the units we built in
under the roofline gaining an extra 400
milimetres in some parts.
“The council also wanted us to pay to
get another diagram of the sewer done.
“When we put the development
application in we spent about $5000.
“Even our developing mentor said to
us at that stage most people would have
“He couldn’t believe we could get it
through for $5000.
“So many people go into development
and they spend all this money for
professional advice because they don’t
understand it themselves.
“If they did some research they
wouldn’t have to pay as much.” API
Ruth and Stephen explain how the
construction has progressed on their
development and the steps they took to
successfully market their new properties.
Properties Located in the Detroit, Michigan Suburbs and Florida
Properties range from US $60,000-$65,000
Average Rents of US $900 Per Month (15%+ ROI)
Quality Homes Acquired
Beautiful Rehabilitation and Renovations
In-house Property Management Company
The Best Properties are Quickly Being Bought Up by Savvy Investors
500+ Units SOLD in the Last 2 Years
Selling Quality US Property for 20 years
John Graham | Broker/Owner
www.johngrahaminc.com | 47766 Van Dyke Ave. Shelby Township Michigan 48317 | Email: firstname.lastname@example.org
Office: 0011 + 1 + 248.586.739.0047 | Fax: 0011 + 1 + 248.586.799.4701
US Property Sales prices are still DOWN
Rents Remain HIGH - Resulting in a HIGH ROI
Consider John Graham for YOUR
REAL ESTATE INVESTMENT
æWe always overestimate on costs and underestimate on
profit. You need to get your numbers right.Æ Ruth Host
Building under construction
Walls and roof go on
DEVELOPMENT SERIES // PART 2
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