Karen Baldwin – Morphett Vale (Main South Road), VIC
Property Development Graduate
Background
This deal belonged to a DGI RER student, who purchased it in 2015 for $315,000. It was a mortgagee property and the plan was to construct 6 townhouses on the site. However, the RER student decided that she no longer wanted to proceed with the deal, and wanted to focus her efforts on another development opportunity. Karen took over the site and with the support of a money partner, was able to complete the developments and made a combined profit of $312,800.
Development progress
The Numbers
These cost include estimated cost of development and estimated profits.
| Expenses | Cost |
|---|---|
| Purchase price | $520,000 |
| Purchase costs | $26,500 |
| Costs – water, open space, surveying | $44,000 |
| Construction | $975,000 |
| Finance costs | $60,000 |
| Rates etc | $7,000 |
| Insurance | $1,200 |
| Contingency | $48,500 |
| Selling costs | $45,000 |
| Total cost | $1,727,200 |
| Resale | $2,040,000 |
| Profit | $312,800 |
