Business plan

2011

Wonthaggi House relocation

Issue date 09/07/11

The Dandenong Motorcycle Clubs mission is to have a good long term tenant on the DMCC property at Wonthaggi. This will provide security at the property and to ensure the long term viability of the motorcycle complex. DMCC are planning to relocate an existing house that has been sourced, at no cost and is in great condition. It is proposed that the house would be sited into a designated area at the Wonthaggi Motor cycle complex at 220 West Area Rd Wonthaggi. The location has been decided by the House organizing committee and ratified by the DMCC executive.

On the 14/07/2011 as the club will be voting on the proposal. Alternatively you can email your opinion to glenn@magbuilding.com.au

Safety

DMCC will maintain a high level of OH&S and cleanliness on the building site.

Strategy

Rent the house for a market value with a minimum 12 month lease. Estimated weekly rent of $300.00

Members
Ensure DMCC members are kept up to date on the progress of the project during construction and ensure the committee follows up with maintenance after completion.

Subcontractors
Provide a safe clean working environment for Subcontractors.

Our aim is to have the relocated home completed in two stages.

Stage 1 would be to have the home positioned on the site with a new colorbond roof and made water tight. Approximate cost of $43,000.

Stage 2 would be to have all of the connections installed to the house and a new 2 car garage constructed along with landscaping, fences and minor damage repaired after the move.

Approximate cost of $30,000.

As part of Stage 2 the club has no choice but to upgrade the existing septic systems at the property by connecting into the main sewer system.. This can be achieved by installing a pump station to dispose of all the waste water from the site. After these works are completed the property would then be ready to have a tenant move in.

Funds sought and used

The club has around $80,000.00 in the bank; DMCC are estimating an outlay of $72,246.00 plus a 10% contingency if required to have the house ready for a tenant. The DMCC could save significant costs by club members volunteering their time and trades to assist with the project.

The proposed time frame from the clubs agreement to a tenanted house is estimated at 4 months.

Approximate Breakdown of the cost.

House purchase                              $Nil

Relocation contractor                     $35,000 TBC

Pump station and sewer system       $13,000  Estimate only

Power                                          $300

Plumbing                                      $1,600

Roof plumbing                              $8,500

Hot Water                                    $1,096

Water tank                                   $1,750

Landscaping and drive                   $500

Garage                                         $5,600

Termite treatment                        $450

Permits and fees                           $2,500

Fire place                                     $1,650

Wardrobes                                    $300

Total                                           $72,246 Approximate

Financial Summary.

Projected income statement summary.

                                        FY11               FY12               FY13               FY14               FY15

Rent                                 $15,600           $15,600           $15,600           $15,600           $16,640

Cost of installing the house $70,000

 

Gross profit                      $-54,400          $-39,900          $-25,400          $-11600           $3,940

 

Operating expenses:

Rates                               $600               $600               $600               $700                $700

Maintenance                     $500               $500               $1,200            $500                $500

Operating profit or Loss -$55,500         $-41,000         $-27,200        $-12,700         $2,840

We will have an electricity meter installed on the house and the tenant will have to pay their share along with having the gas bottles replaces. Water usage would either form part of the rent or be separately metered.

On the 14/07/2011 as the club will be voting on the proposal. Alternatively you can email your opinion to glenn@magbuilding.com.au

Glenn Capuano
President