Karen Baldwin – Hackham West, SA
Property Development Graduate
Background
Karen found this property on the market. It is located in a very “bread and butter” Southern Adelaide suburb. When Karen found the property, it had been previously under contract, but the deals had all fallen apart due to finance issues. Karen made an offer of $222,000 cash unconditional, which was accepted by the owners. Through her relationship with the builder, Karen was able to have potential buyers lined up prior to completing the works on the property. After the subdivision, Karen was able to make a combined profit of $45,500.
The Numbers
These cost include estimated cost of development and estimated profits.
| Expenses | Cost |
|---|---|
| Purchase price | $222,000 |
| Purchase costs | $9,500 |
| Subdivision costs | $25,000 |
| Demolition/tree removal | $15,000 |
| Holding costs | $500 |
| Finance costs | $10,500 |
| Conveyancing on sale | $2,000 |
| Total cost | $284,500 |
| Resale (2 x $165,000) | $330,000 |
| Profit | $45,500 |
