You have a kind soul, bro.. beware some sinkies may follow advice blindly ~ without assessing their personal circumstances.. when it fails, you will simply be blamed.. so its better to put a disclaimer clause
So hows your properties doing lately ? Hey, I manage to engage cheap indian students do some DIY renov.. I have heaps of contact numbers now.. by pressing a few buttons on my iPhone, these students will report for work the next day. heehee. Properties here have increased 20% in last 6mths, I hope to achieve 50% growth when the renov is completed
Hopefully, we can enjoy our retirement together .. travel to SG/M'sia for 3-6mths during winter
& yum seng together.. heehee..
Hi Axe168,
I have been working to build my apartment building. When i was trying to buy a apartment building, i notices taht most of them are around 40-50 years old. It is made with Wood (shelf life - 70 years old). So if i buy over, i will have to put aside a big budget for Maintenance and prepare for tearing down the apartment block and rebuild in the same location if i hold for long.
Coming from Sg and having travel within China. I noticed how they build their aprt buildings - Pre fab. I am completing my research, the following are my findings
The basic cost is USD$375 (C$400) per square metre or (1 sq metre = 10.76). 1 block of 10 units is around C$500,000 in China – usually you can do a 20 Units (C$1,000,000) back to back. (4 units on a floor). Each unit is around 1000 sq ft. 2 bed room and 1 study room.
It cost around $20 per square feet of concrete. 272 sq metres = $60,000 for the foundation.
Installation is 5 months x 10 person. 50hours x $50 per hours x10 = $25000 monthly. 5 months to finished project = $125000.
Freight cost - USD$2500 x 44 containers = $110,000.
Land scaping and roads. = $60,000.
Planning and zoning & supervision = $100,000
Total : $455,000
1.5 million + land $500,000 = $2,000,000.
What is the value of the apartment when completed.
Since this is a concrete and steel building – min cost is 220 per square metres when you building Edmonton. Exc plumbling,electrical and etc
So a similar building in Edmonton should come up to $5 - 5.9 million.
If the bank value it @ 5 million or $250,000 per unit. We managed to finance it at 65% LTV. We still get back $3,250,000. or 3 million if we are conservative
Another variation.
We can start with over designed on the load for the foundation. (For instance, we start with 5 story building but we reinforced the foundation until it can withstand 15 story). We have the provision to add a elevator and add 5 – 10 floors (20-30 units) if we can get it rezoned.
Have to add in the following:
1. Need to establish the potential market value of the apartment block development.
2. Additional costs that needs to be considered:
o Ground preparations
o Exacavation, disposal, etc.
o Connection of utilities, telecommunications, sewers, etc.
o Costs for interior finishing/decorative/carpentry/plumbing/electrical works. - the prefab take care of 70% of this
3. The installation labor cost does seem on the low side. Are there any other indirect or statutory costs? Double this - still make
4. If the total cost to build & market takes up to about 65% of the project's market value, I think it will be viable.
In this city, during Ralph Klient years - he made it his priority to turn Alberta to be come debt-free but paying down. So there are opportunities
