Karen Baldwin – Hackham West, SA

Property Development Graduate


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
Morphett Vale (O'Sullivan Beach Rd) SA Development Case StudyMorphett Vale (Main South Road), VIC - Property Development Case Study