1.7 Hectares (Development)
Discussion
Been offered 1.7 hectares of land today. The deal was that the owner would sign over the land to myself for free and in return I would do some works on another piece of land he owns for free.
Initially it seemed too good to be true (as do many things), the council have no real objection to development on the site as outline has been submitted for a scheme of 63 dwellings, which they have hinted will be accepted.
This is where it goes wrong though. The 63 dwelling would be:
24 detached homes (roughly 2000 sq ft each)
26 town houses/semi detached homes (roughly 1500 sq ft each)
12 apartments (roughly 700 sq ft each)
Values would be:
24 x £ 225,000 (£ 5,400,000)
26 x £ 175,000 (£ 4,550,000)
12 x £ 100,000 (£ 1,200,000)
TOTAL WORTH = (£ 11,150,000)
Build costs we are thinking around £ 7,155,000 (95,400 sq ft @ £75/sq ft)
Misc costs of around £ 2,000,000, which includes interest from bank, architect fees, engineering fees, estate agents costs, planning application fees, etc, etc.
Summary:
Land: £ 500,000 (works to other land)
Build: £ 7,155,000
Misc: £ 2,000,000
TOTAL: £ 9,655,000
Worth: £ 11,150,000
Profit (Pre-tax): £ 1,495,000
However, due to development size the 106 issues arise & guidelines state that they would want 25%, ie 15 plots. They would pay circa £ 50,000 per plot, so assuming they were given the worst plots then this would reduce the worth upon completion from £ 11,150,000 to around £ 10,300,000
This gives a margin of only 8% (roughly), at which it is obviously not worth doing. Am I missing something here, surely that amount of land is worth something ?
It was not our intention to develop the land itself. We were merely going to put planning on the land & then sell it one to a bigger company. Obviously the bigger companies aren't buying that much now, however I was thinking surely we would make a bit of easy £ by flipping it.
Initially it seemed too good to be true (as do many things), the council have no real objection to development on the site as outline has been submitted for a scheme of 63 dwellings, which they have hinted will be accepted.
This is where it goes wrong though. The 63 dwelling would be:
24 detached homes (roughly 2000 sq ft each)
26 town houses/semi detached homes (roughly 1500 sq ft each)
12 apartments (roughly 700 sq ft each)
Values would be:
24 x £ 225,000 (£ 5,400,000)
26 x £ 175,000 (£ 4,550,000)
12 x £ 100,000 (£ 1,200,000)
TOTAL WORTH = (£ 11,150,000)
Build costs we are thinking around £ 7,155,000 (95,400 sq ft @ £75/sq ft)
Misc costs of around £ 2,000,000, which includes interest from bank, architect fees, engineering fees, estate agents costs, planning application fees, etc, etc.
Summary:
Land: £ 500,000 (works to other land)
Build: £ 7,155,000
Misc: £ 2,000,000
TOTAL: £ 9,655,000
Worth: £ 11,150,000
Profit (Pre-tax): £ 1,495,000
However, due to development size the 106 issues arise & guidelines state that they would want 25%, ie 15 plots. They would pay circa £ 50,000 per plot, so assuming they were given the worst plots then this would reduce the worth upon completion from £ 11,150,000 to around £ 10,300,000
This gives a margin of only 8% (roughly), at which it is obviously not worth doing. Am I missing something here, surely that amount of land is worth something ?
It was not our intention to develop the land itself. We were merely going to put planning on the land & then sell it one to a bigger company. Obviously the bigger companies aren't buying that much now, however I was thinking surely we would make a bit of easy £ by flipping it.
Hobo said:
Been offered 1.7 hectares of land today. The deal was that the owner would sign over the land to myself for free and in return I would do some works on another piece of land he owns for free.
Initially it seemed too good to be true (as do many things), the council have no real objection to development on the site as outline has been submitted for a scheme of 63 dwellings, which they have hinted will be accepted.
This is where it goes wrong though. The 63 dwelling would be:
24 detached homes (roughly 2000 sq ft each)
26 town houses/semi detached homes (roughly 1500 sq ft each)
12 apartments (roughly 700 sq ft each)
Values would be:
24 x £ 225,000 (£ 5,400,000)
26 x £ 175,000 (£ 4,550,000)
12 x £ 100,000 (£ 1,200,000)
TOTAL WORTH = (£ 11,150,000)
Build costs we are thinking around £ 7,155,000 (95,400 sq ft @ £75/sq ft)
Misc costs of around £ 2,000,000, which includes interest from bank, architect fees, engineering fees, estate agents costs, planning application fees, etc, etc.
Summary:
Land: £ 500,000 (works to other land)
Build: £ 7,155,000
Misc: £ 2,000,000
TOTAL: £ 9,655,000
Worth: £ 11,150,000
Profit (Pre-tax): £ 1,495,000
However, due to development size the 106 issues arise & guidelines state that they would want 25%, ie 15 plots. They would pay circa £ 50,000 per plot, so assuming they were given the worst plots then this would reduce the worth upon completion from £ 11,150,000 to around £ 10,300,000
This gives a margin of only 8% (roughly), at which it is obviously not worth doing. Am I missing something here, surely that amount of land is worth something ?
It was not our intention to develop the land itself. We were merely going to put planning on the land & then sell it one to a bigger company. Obviously the bigger companies aren't buying that much now, however I was thinking surely we would make a bit of easy £ by flipping it.
Teh council May not have any objectiosn as it would help meet there build targets. But why is the land being sold??Initially it seemed too good to be true (as do many things), the council have no real objection to development on the site as outline has been submitted for a scheme of 63 dwellings, which they have hinted will be accepted.
This is where it goes wrong though. The 63 dwelling would be:
24 detached homes (roughly 2000 sq ft each)
26 town houses/semi detached homes (roughly 1500 sq ft each)
12 apartments (roughly 700 sq ft each)
Values would be:
24 x £ 225,000 (£ 5,400,000)
26 x £ 175,000 (£ 4,550,000)
12 x £ 100,000 (£ 1,200,000)
TOTAL WORTH = (£ 11,150,000)
Build costs we are thinking around £ 7,155,000 (95,400 sq ft @ £75/sq ft)
Misc costs of around £ 2,000,000, which includes interest from bank, architect fees, engineering fees, estate agents costs, planning application fees, etc, etc.
Summary:
Land: £ 500,000 (works to other land)
Build: £ 7,155,000
Misc: £ 2,000,000
TOTAL: £ 9,655,000
Worth: £ 11,150,000
Profit (Pre-tax): £ 1,495,000
However, due to development size the 106 issues arise & guidelines state that they would want 25%, ie 15 plots. They would pay circa £ 50,000 per plot, so assuming they were given the worst plots then this would reduce the worth upon completion from £ 11,150,000 to around £ 10,300,000
This gives a margin of only 8% (roughly), at which it is obviously not worth doing. Am I missing something here, surely that amount of land is worth something ?
It was not our intention to develop the land itself. We were merely going to put planning on the land & then sell it one to a bigger company. Obviously the bigger companies aren't buying that much now, however I was thinking surely we would make a bit of easy £ by flipping it.
We have 3 acres of land near me that the council were happy to permit planning there until the local resident found out. A large lobby group was formed and forced a council U-Turn. The developer Barratts is not sitting on land that cost them quiet a bit that has now been designated to non development zone. To which they are not happy about.
Sa there are , alegedly a lot of builders being laid off and the Trade in pretty s
t at the moment you build cost could be lower.
But
Who is going to buy these houses?
IIRC mortgages are a bit thin on the ground and the estate agents are in the st through lack of business.
Could you cope if the houses didn't sell quickly?
t at the moment you build cost could be lower.But
Who is going to buy these houses?
IIRC mortgages are a bit thin on the ground and the estate agents are in the s
t through lack of business.Could you cope if the houses didn't sell quickly?
What are the average build costs now?
I have been planning a house build for 2 years now, finally got permission from the council this week.
Originally I was quoted £1000 per Sq/M. just got an email from my architect saying the price of build has gone up to roughly £1200 per Sq/M
I thought they would have been less now with so many builders being laid off etc?
Any Suggestions.
I have been planning a house build for 2 years now, finally got permission from the council this week.
Originally I was quoted £1000 per Sq/M. just got an email from my architect saying the price of build has gone up to roughly £1200 per Sq/M
I thought they would have been less now with so many builders being laid off etc?
Any Suggestions.
Residents have already commented on the scheme put forward for outline, and whilst there were a number of people unhappy, the overall view from the council was that it would go ahead.
With regards to houses selling/mortgages, etc. Well, as said, I am not interested in a development this size myself, mearly to flip. I have two (hopefully three by end of next week) developments currently ongoing or to start, in total being 12 homes, which will be complete in the next 18 months. Thats enough for me at the moment.
The development in question does look too risky in reality, however I just can't get my head around the fact that the guy is basically willing to give up that amount of land for around 500k. I just wanted to explore all avenues before turning it down. I will probably ask for 12 months exclusivity on it & sit on it for six months to see if anything changes before making a final decision.
With regards to houses selling/mortgages, etc. Well, as said, I am not interested in a development this size myself, mearly to flip. I have two (hopefully three by end of next week) developments currently ongoing or to start, in total being 12 homes, which will be complete in the next 18 months. Thats enough for me at the moment.
The development in question does look too risky in reality, however I just can't get my head around the fact that the guy is basically willing to give up that amount of land for around 500k. I just wanted to explore all avenues before turning it down. I will probably ask for 12 months exclusivity on it & sit on it for six months to see if anything changes before making a final decision.
Im on the planning side in a large consultancy so no expert on values but that does seem low. However, Im currently running an application of similar size (70 units) and we were expecting bids of circa 1m, but that was valued about 6-12 months ago.
If you cant sit on it i would be careful. One of the problems is see is that councils were slow to respond to the rise in development profits and now have the policies in place to capture some of the profits (education, transport, open space contributins etc), just when the market is in downturn!
If you cant sit on it i would be careful. One of the problems is see is that councils were slow to respond to the rise in development profits and now have the policies in place to capture some of the profits (education, transport, open space contributins etc), just when the market is in downturn!
Hobo said:
Am I missing something here, surely that amount of land is worth something ?
Yes, your mix is wrong. Badly wrong!Grease my palm with enough silver, and I'll point you in the right direction, though with the figures you're quoting for professional fees, you really ought to be getting better advice already.
This is my job; it's what I do for a living (live it!).
Couple of things. Sam68 knows what he's talking about. He's consistently given good (impartial) advice to a lot of chaps on here.
On to your deal then.
Where is this site roughly in the uk? Even if this was the arse end of Anglesey that build cost feels a little light.
£2,000,000 feels alot for interest, professional fees etc. Can you break it down for us?
Does this development envisage a basement car park? If it does that Build cost figure is wayyyyyyy too low.
Build Cost inflation is roughly 6% pa (BCIS index) but steel prices have risen 40% over the last 12 months. It's not really about the labour costs; it's the raw material costs that's key. We were paying £870 a ton for reinforced concrete 18 months ago - it's now £1,250 a ton as a minor example.
Your mix of units looks like it might need looking at. THis outline consent? Is it for a total amount of square footage or is it as you've written in terms of the mix?
Affordable Housing. Which borough are you working in? And what have they said about Affordable housing percentage and mix of units as a percentage of the site? Ask the council whether they allow Grant under the S106 agreement. It makes a significant difference to the amount of money you will get for your affordable units. Don't turn your nose up at Affordable units. You can get the Affordable company to help pay for the land, in terms of when they exchange contracts with you and also help with your WIP (work in progress) as they will pay on monthly valuations thus off setting your payments as you build the entire site.
If you allowed different tenures of affordable on your site pleasse make sure you agree an overage on the Shared ownership element. Too many developers miss that one. I don't even think that most developers even know that one actually!
Whom has come up with those re-sales figures? Is that an 'on the market' price or is it 'achieved'?
Don't kid yourself. If those units are going to go for less, make your viability so.
You need to account for 2% of the Gross Private sales for sales commission to the selling agent. I'd also put a figure in the build cost as a sales fund in case you have to offer incentives. say another 2-7% of your anticipated Sales revenue.
I'd make your bank interest at least 7.25% unless you've got a fixed contract right now?
More when I can think of stuff I've missed!
Couple of things. Sam68 knows what he's talking about. He's consistently given good (impartial) advice to a lot of chaps on here.
On to your deal then.
Where is this site roughly in the uk? Even if this was the arse end of Anglesey that build cost feels a little light.
£2,000,000 feels alot for interest, professional fees etc. Can you break it down for us?
Does this development envisage a basement car park? If it does that Build cost figure is wayyyyyyy too low.
Build Cost inflation is roughly 6% pa (BCIS index) but steel prices have risen 40% over the last 12 months. It's not really about the labour costs; it's the raw material costs that's key. We were paying £870 a ton for reinforced concrete 18 months ago - it's now £1,250 a ton as a minor example.
Your mix of units looks like it might need looking at. THis outline consent? Is it for a total amount of square footage or is it as you've written in terms of the mix?
Affordable Housing. Which borough are you working in? And what have they said about Affordable housing percentage and mix of units as a percentage of the site? Ask the council whether they allow Grant under the S106 agreement. It makes a significant difference to the amount of money you will get for your affordable units. Don't turn your nose up at Affordable units. You can get the Affordable company to help pay for the land, in terms of when they exchange contracts with you and also help with your WIP (work in progress) as they will pay on monthly valuations thus off setting your payments as you build the entire site.
If you allowed different tenures of affordable on your site pleasse make sure you agree an overage on the Shared ownership element. Too many developers miss that one. I don't even think that most developers even know that one actually!
Whom has come up with those re-sales figures? Is that an 'on the market' price or is it 'achieved'?
Don't kid yourself. If those units are going to go for less, make your viability so.
You need to account for 2% of the Gross Private sales for sales commission to the selling agent. I'd also put a figure in the build cost as a sales fund in case you have to offer incentives. say another 2-7% of your anticipated Sales revenue.
I'd make your bank interest at least 7.25% unless you've got a fixed contract right now?
More when I can think of stuff I've missed!
Hobo.
I've done some very brief sums on this deal ok? And I'm very concerned that it doesn't work on the current basis.
If we agree that you're going to get £225,000 for a 2,000 sq ft unit then that equates to £112 per square foot. It makes things extremely tight if the build jumps significantly from £75psf.
Bear in mind the affordable is actually technically 'under water' - ie the receipt is less than itf cost you to build the damn thing!
We need to re-engineer the site and make those family units smaller. Could we perhaps get away with a 1,250 sq ft house and still sell it for £225,000 for example? You'd then be getting £180psf rather than £112. Makes a huge difference.
Whom has set the Affordable receipt at £50,000 per unit? The council? Don't listen to them. You need to approach a Registered social landloard direct. Speak to the council and ask them whom are there 3 preferred RSL's- then contact them. Ask them about Housing corporation grant - makes a massive difference to what the RSL's can offer you per unit.
Ask the council whether the Affordable threshold is on a unit or habitable room basis? If it's a unit ge the mix and make them as small as you can possibly make them. If it's on a hab rm basis then make them as large as you can (as a you'll build less physical units even though they're slightly larger).
What's the parking standard? 1:1 on the private and .5 for the Affordable? Can you get away with not giving any parking to the Social rented element?
What I'm trying to get at is that every wasted square foot you build on this site is going to directly affect your profit. More importantly it's going to mean the difference between getting a good offer from a developer or no offer at all.....
I've done some very brief sums on this deal ok? And I'm very concerned that it doesn't work on the current basis.
If we agree that you're going to get £225,000 for a 2,000 sq ft unit then that equates to £112 per square foot. It makes things extremely tight if the build jumps significantly from £75psf.
Bear in mind the affordable is actually technically 'under water' - ie the receipt is less than itf cost you to build the damn thing!
We need to re-engineer the site and make those family units smaller. Could we perhaps get away with a 1,250 sq ft house and still sell it for £225,000 for example? You'd then be getting £180psf rather than £112. Makes a huge difference.
Whom has set the Affordable receipt at £50,000 per unit? The council? Don't listen to them. You need to approach a Registered social landloard direct. Speak to the council and ask them whom are there 3 preferred RSL's- then contact them. Ask them about Housing corporation grant - makes a massive difference to what the RSL's can offer you per unit.
Ask the council whether the Affordable threshold is on a unit or habitable room basis? If it's a unit ge the mix and make them as small as you can possibly make them. If it's on a hab rm basis then make them as large as you can (as a you'll build less physical units even though they're slightly larger).
What's the parking standard? 1:1 on the private and .5 for the Affordable? Can you get away with not giving any parking to the Social rented element?
What I'm trying to get at is that every wasted square foot you build on this site is going to directly affect your profit. More importantly it's going to mean the difference between getting a good offer from a developer or no offer at all.....
Thanks for the advice. As I think I've mentioned earlier, this is way too big for me & not something I can honestly look in detail as I don't really understand the details of such a size development.
The £2m misc costs was basically for:
1.8m bank charges based on terms already in place (working on a 3 year build ???)
50k architect (???)
35k structural engineer (£500/plot)
39k solicitors (£750/plot)
147k selling fees (1.25% of worth)
24k planning (£325/plot)
Roughly ......................
The development itself is in West Yorkshire.
Its the social housing part that throws the figures all over the shop & that I don't have an idea about. I only said 25% as the last time I looked at a development (of 18) thats the figure the council were asking for.
If its worth anything to anyone then I will gladly put you in touch with the owner (for a small finders fee obviously)
The £2m misc costs was basically for:
1.8m bank charges based on terms already in place (working on a 3 year build ???)
50k architect (???)
35k structural engineer (£500/plot)
39k solicitors (£750/plot)
147k selling fees (1.25% of worth)
24k planning (£325/plot)
Roughly ......................
The development itself is in West Yorkshire.
Its the social housing part that throws the figures all over the shop & that I don't have an idea about. I only said 25% as the last time I looked at a development (of 18) thats the figure the council were asking for.
If its worth anything to anyone then I will gladly put you in touch with the owner (for a small finders fee obviously)
Hobo said:
50k architect (???)
You're way off on lots of your figures, but you owe me a new keyboard for making me spray coffee all over it on this one in particular! 
You're out by a factor of about 5 in the current market!
And yes, the affordable will f
k things up good and proper, with the numbers and mix you're applying.Having said all which, it's frighteningly easy to come up with a negative land value at the moment. We looked at a site of very similar size, recently, that came up with a land value of £200K, despite being in a good area and relatively clean of abnormals. None of the big boys are buying, because there's no certainty of any more.
Edited by Sam_68 on Thursday 11th September 18:23
Firstly, I didn't put the mix together. This was done by someone else, so whether its cr@p or brilliant is not of my doing.
Secondly, with regards to architects fees, I suspect this is somewhat related to the relationship you have with them to start with. I remember on our first development we approached an architect well known for working for the big boys. His fee to us was 3% of the development value upon completion. A complete piss take for what was the same footprint over & over again. We went with another who was half that price thinking we had a good deal. Since then we have been using another architect completely and have worked up a good relationship with him. He doesn't charge for looking at new site & drawing up potential schemes as he knows any site we buy he will get the work.
My point being that, yes, I suspect if you deal with these people all the time on projects this size (and have paid well, etc) then you may be able to get it for much cheaper. However, to people who have not undertaken projects on this size then the sames prices are not available instantly.
Anyway..... I honestly don't want the land as it would swallow too much money & resources for what I suspect would be too little return, and have smaller, more manageable & very profitable projects for my company to worry about. However if, as mentioned before, anyone is interested then I will glady put them in contact with the owner.
Secondly, with regards to architects fees, I suspect this is somewhat related to the relationship you have with them to start with. I remember on our first development we approached an architect well known for working for the big boys. His fee to us was 3% of the development value upon completion. A complete piss take for what was the same footprint over & over again. We went with another who was half that price thinking we had a good deal. Since then we have been using another architect completely and have worked up a good relationship with him. He doesn't charge for looking at new site & drawing up potential schemes as he knows any site we buy he will get the work.
My point being that, yes, I suspect if you deal with these people all the time on projects this size (and have paid well, etc) then you may be able to get it for much cheaper. However, to people who have not undertaken projects on this size then the sames prices are not available instantly.
Anyway..... I honestly don't want the land as it would swallow too much money & resources for what I suspect would be too little return, and have smaller, more manageable & very profitable projects for my company to worry about. However if, as mentioned before, anyone is interested then I will glady put them in contact with the owner.
Hobo said:
Firstly, I didn't put the mix together. This was done by someone else, so whether its cr@p or brilliant is not of my doing.
But if it's cr@p (which I can tell you, free, gratis, and for nothing, it is),then you'll never get a clear indication of the value of the potential deal to be had.Hobo said:
...with regards to architects fees, I suspect this is somewhat related to the relationship you have with them to start with....to people who have not undertaken projects on this size then the sames prices are not available instantly.
Nonsense.I'm getting about a dozen architectural practices a week scrounging for work at the moment (and those are only the ones who manage to blag their way past my secretary). If they want to get a foot in the door, they have to work for less than the rates I pay my established Architects, until they've proved they're up to scratch.
Right at the moment, they need you a lot more than you need them... if you can convince them that you know what you're doing and that you're not just some amateur chancer. Give them a mix and a viability like that, though, and they'll just see you as a fool who needs to be parted from his money as quickly as possible, before moving on to better long term prospects...
Sorry to be so blunt, but if you want to play with the big boys...
Sam_68 said:
Hobo said:
Firstly, I didn't put the mix together. This was done by someone else, so whether its cr@p or brilliant is not of my doing.
But if it's cr@p (which I can tell you, free, gratis, and for nothing, it is),then you'll never get a clear indication of the value of the potential deal to be had.you are looking at 63 dwelling approximately 265m2 per dwelling. Personally i feel that a development of 1 dweeling per 265m2 is a bit high. Sorry but if you are looking at developing a nice estate where people actually want to live then giving them that bit more space over squeezing in 3/4/5 more house, may make your development stand out from the rest.
The estate where i live has been developed by 4 different developers in the last 10 years. The road where BArratts have buit homes is approximately 2 hectres and they have squeezed on 50 Detached houses, and 40 semis. Each house does not have its own driveway or front garden the average plot size for a 3 bed detached is 220m2. you are stepping out of your front door on to the footway. and considering these houses are worth in excess of 300k its laughable. Move a bit further around to a large cul-de-sac of 2.5 hectres. you have 90 detached homes. varying in size from 3 to 5 bed. a average size 3 bed occupies a plot of 400m2 but the house is of a similar size but has a detached garage nice frontage and a good size garden. the difference in price when new was £8000, but the barratts homes now are hard to sell as the area is just cramped and is covered by onstreet parking. whereas the cul-de-sac where i live have a higher resale value, some 45k more and is a more pleasent estate to live on.
Do you research on nearby estates etc and work out there average dwelling per land area and see if you can push it a little. The character and landscaping of the area is often overlooked but it is important.
Sam_68 said:
Hobo said:
...with regards to architects fees, I suspect this is somewhat related to the relationship you have with them to start with....to people who have not undertaken projects on this size then the sames prices are not available instantly.
Nonsense.I'm getting about a dozen architectural practices a week scrounging for work at the moment (and those are only the ones who manage to blag their way past my secretary). If they want to get a foot in the door, they have to work for less than the rates I pay my established Architects, until they've proved they're up to scratch.
Right at the moment, they need you a lot more than you need them... if you can convince them that you know what you're doing and that you're not just some amateur chancer. Give them a mix and a viability like that, though, and they'll just see you as a fool who needs to be parted from his money as quickly as possible, before moving on to better long term prospects...
Sorry but no respected qualified arcitect is going to work for any significant amount under market rates. Yea it may be bad at the moment in the UK, but its not like that everywhere.
Sam_68 said:
Sorry to be so blunt, but if you want to play with the big boys...
you may know your stuff, but 1st prize for arrogance is awarded to.....stevieb said:
...without seeing the plans for the developmetn i do not think that is a accurate statement to make.
Not at all. There are glaring inadequacies with the information he gave. For instance (but by no means only), you don't build 1500 sq. ft houses to sell to a Housing Association for £50K...
... and as Mr Savaloy says, you rapidly get into the realms of diminishing returns with revenue per square foot, particularly on relatively small developments with a fairly high proportion of affordable (which drag values down at the upper end of the price range, 'cos you can't isolate the big houses sufficiently from the scrotes).
stevieb said:
Sorry but no respected qualified arcitect is going to work for any significant amount under market rates. Yea it may be bad at the moment in the UK, but its not like that everywhere.
Rightyho. You're the expert, obviously. But I guarantee that I would expect the bill architectural work for a development of the size quoted by the OP to come to no more than 1/5th to 1/3rd of the numbers he was quoting, at the moment.
Market rates are only any good as long as there's still a market.
Sorry if it sounds arrogant, but if you've got a proper understanding of the way things work, there are lots of indicators in the information that the OP gave that are just screaming 'amateur'; imagine someone coming up to you and telling you his Saxo had been chipped and had this fuel booster and an electric supercharger, and that it would waste your Scooby any day...
Now we've all got to learn somewhere, and I'm perfectly happy to point Mr Hobo in the right direction, but I know what my knowledge is worth to him in straight, tangible financial terms...
You knowledge is worthless to me as I don't want it. I have stated I have no interest in the land to develop myself and was merely looking into the options on selling it on to someone who may be interested.
I an open about the fact that I am an amatuer when it comes to developments of this size as I have never looked at a scheme anything this size, nor want to, and as such have no idea on the implications of 106. It remains however, I suspect, that in this case the amatuer makes a damn site more financial reward for investing huge amounts of his own money, as owner of his own company/s, than certain people do working staff for someone else, regardless of how much they alledge to know.
Each to thier own.
Offer still stands, if anyones interested in the land then drop me a mail.
I an open about the fact that I am an amatuer when it comes to developments of this size as I have never looked at a scheme anything this size, nor want to, and as such have no idea on the implications of 106. It remains however, I suspect, that in this case the amatuer makes a damn site more financial reward for investing huge amounts of his own money, as owner of his own company/s, than certain people do working staff for someone else, regardless of how much they alledge to know.
Each to thier own.
Offer still stands, if anyones interested in the land then drop me a mail.
Hobo said:
Thanks for the advice. As I think I've mentioned earlier, this is way too big for me & not something I can honestly look in detail as I don't really understand the details of such a size development.
The £2m misc costs was basically for:
1.8m bank charges based on terms already in place (working on a 3 year build ???)
50k architect (???)
35k structural engineer (£500/plot)
39k solicitors (£750/plot)
147k selling fees (1.25% of worth)
24k planning (£325/plot)
What about a QS or employers Agent, what about a Bank Monitoring firm? The banks are getting stricter and stricter on who will monitor and access costs etc etc
Roughly ......................
The development itself is in West Yorkshire.
Its the social housing part that throws the figures all over the shop & that I don't have an idea about. I only said 25% as the last time I looked at a development (of 18) thats the figure the council were asking for.
If its worth anything to anyone then I will gladly put you in touch with the owner (for a small finders fee obviously)
The £2m misc costs was basically for:
1.8m bank charges based on terms already in place (working on a 3 year build ???)
50k architect (???)
35k structural engineer (£500/plot)
39k solicitors (£750/plot)
147k selling fees (1.25% of worth)
24k planning (£325/plot)
What about a QS or employers Agent, what about a Bank Monitoring firm? The banks are getting stricter and stricter on who will monitor and access costs etc etc
Roughly ......................
The development itself is in West Yorkshire.
Its the social housing part that throws the figures all over the shop & that I don't have an idea about. I only said 25% as the last time I looked at a development (of 18) thats the figure the council were asking for.
If its worth anything to anyone then I will gladly put you in touch with the owner (for a small finders fee obviously)
Gassing Station | Business | Top of Page | What's New | My Stuff