Julie Sherden – Katoomba, NSW
Property Development Graduate
Background
Julie found this distressed property after it had been on the market for over 500 days. She was able to secure it for $85k below market value. The property is a 1930’s house in a popular tourist spot in the Blue Mountains. Julie plans to add a granny flat and lists it on Airbnb for a potential yearly cash flow of up to $90k.
The Numbers
These cost include estimated cost of development and estimated profits.
| Expenses | Cost |
|---|---|
| Purchase price | $535,000 |
| Renovation costs | $36,000 |
| Granny flat costs | $90,000 |
| Total cost | $661,000 |
| Projected final value | $830,000 | estimated profit $169k |
| Profit | Rental income p.a. $90k |
