Karen Baldwin – Flagstaff Hill, SA
Property Development Graduate
Background
Karen found this deal the day after setting her 5-week challenge. It was a local agent who needed to sell quickly to finalise his divorce settlement. The owner was insistent on a bottom line of $500,000. After doing the calculations, Karen made an offer the following morning at $501,000 cash unconditional. The contract was signed that afternoon and Karen was able to secure the deal. The property didn’t stack up as a renovation, so Karen decided to do a land subdivisions instead, which made her a combined profit of $45,500.
Drawings
The Numbers
These cost include estimated cost of development and estimated profits.
| Expenses | Cost |
|---|---|
| Purchase price | $501,000 |
| Purchase costs | $26,500 |
| Subdivision/demolition/contingency/holding | $42,000 |
| Finance costs | $15,000 |
| Total cost | $584,500 |
| Resale (2 x $315,000) | $630,000 |
| Profit | $45,500 |
