Anne Marie & Stuart Rayner – Mount Pritchard, NSW
Property Development Graduate
Background
Anne Marie found this land, that had subdivision potential being a big block at just over 2000m2. She found the land to be flat considering Mount Pritchard as being known for a hilly area. The strategy for this deal will be to subdivide the land into four 900m2 lots.
Drawings
The Number
These costs include the purchase price, stamp duty, holdings, renovations and relevant adjustments, including the selling costs
| Expenses | Cost |
|---|---|
| Purchase Price | $900,000 |
| Reno costs (subdivison) | $405,000 |
| Stamp duty | $35,990 |
| Interest | $212,000 |
| Holding Costs | $8,200 |
| Agent’s fees | $30,600 |
| Advertising | $4,500 |
| Conveyancing | $8,000 |
| Expected sale price / or sale | $1,800,000 (4 blocks) |
| Projected Profit | $120,000 (net) |
Key Learnings:
- Research what you can do with the property – don’t take the sellers word for it
- Don’t lose control of the project, even when you outsource to other parties
- Be patient, it’s going to take longer than you think – even allowing for delays and extra slow councils !!!
- Be the squeaky wheel…don’t worry about upsetting people…be polite but be persistent.
