Julie Sherden – Wentworth falls, NSW
Property Development Graduate
Background
Julie found this property deal on the market. The original plan was to relocate the house to another area, as the house was in great condition, then build 3 new dwellings on the land. However, after doing some calculations, Julie decided that it was better value to renovate then rotate onto one block and build 2 new dwellings. Julie now makes $58k p.a as passive income from the dual occupancy.
Drawings
Development strategy
Existing home before
Existing after renovation
Manufactured home on Dwelling 1 & 2
The Numbers on existing home
| Expenses | Cost |
|---|---|
| Purchase price | $985,000 |
| Purchase costs | $30,000 |
| Holding costs | $8,000 |
| Renovation | $100,000 |
| Selling costs | $23,000 |
| Money partner | 24,000 |
| Total cost | $1,143,000 |
| Dual occupancy | $58k p.a. passive income |
| Profit | Block of land worth $500,000 |
The Numbers on subdivided dwellings
| Expenses | Cost |
|---|---|
| Purchase price | $685,000 |
| Purchase costs | $28,000 |
| Development costs | $830,000 |
| Sale costs | $42,000 |
| Total cost | $1,585,000 |
| Resale | $1,900,000 |
| Profit | $300,000 |
