Karen Baldwin – Aberoyle Park, SA

Property Development Graduate

Background

Karen’s project is located in Aberfoyle Park, SA. Her strategy involves demolishing the existing house on the land and splitting it into 4 blocks, each block being 440m2. Karen expects to sell each block of land for $220,000 with a projected total net profit (based on comparable sales in the area) of $213,508.

The Numbers

These costs include the purchase price, stamp duty, holdings, renovations and the relevant adjustments including the selling costs.

Expenses Cost
Purchase price $506,000
Stamp Duty $21,660
Transfer Fee $3,977
Conveyancing/Legal Cost $1,200
Development costs $90,000
Holding cost $1,750
Total Cost $624,587
Total Net Profit $23,145

Karen top 3 learning from the property development deal:

  • Never underestimate the power of your agent relationships – this was served up to us and negotiations were super easy and quick.
  • Be greedy when others are fearful – the agent originally had numerous developers interested, but they all backed out as COVID started to bite.
  • Create the product your market wants – we could have built 6 townhouses or divided the land into smaller blocks, but our end buyer is an established buyer and the good size block and wide frontage will be more appealing.

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