Karen Baldwin – Aberoyle Park, SA
Property Development Graduate
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.
These costs include the purchase price, stamp duty, holdings, renovations and the relevant adjustments including the selling costs.
|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.