Karen Baldwin – Happy Valley, SA
Property Development Graduate
Background
Karen found this property through her letter-writing campaign. The owners were a young couple who had purchased the property in 2015 for $340,000. They secured a DA to build 3 x 3 townhouses on the land. They started marketing the townhouses in 2017, but their marriage fell apart at that time. Karen was able to apply for an extension on the lapsed DA, and through dipping into her cash reserve funds, she was able to complete the developments. After the resale, Karen was able to make a profit of $194,500.
Drawings
The Numbers
These cost include estimated cost of development and estimated profits.
| Expenses | Cost |
|---|---|
| Purchase price | $395,000 |
| Purchase costs | $19,500 |
| Development costs | $40,000 |
| Demolition | $14,000 |
| Build costs | $510,000 |
| Holding costs | $2,500 |
| Selling costs | $25,500 |
| Finance costs | $44,500 |
| Total cost | $1,050,500 |
| Resale (3 x $415,000) | $1,245,000 |
| Profit | $194,500 |
