Karen Baldwin – Morphett Vale (O’Sullivan Beach Rd), SA

Property Development Graduate


This deal was another one Karen found through her letter-writing campaign. It belonged to an investor who had the property for several years. The owner knew he could probably get $290-$300k for the property if he sold it on market, however, he did not want to inconvenience the tenants. Karen inspected the property at 2.30 pm and made an offer of $275,000, which was accepted at 4.15 pm the same day. It was a simple split in two projects and made Karen a combined profit of $44,500.


The Numbers

These cost include estimated cost of development and estimated profits.

Expenses Cost
Purchase price $275,000
Purchase costs $13,500
Subdivision costs $25,000
Demolition $12,000
Holding costs $500
Finance costs $9,500
Total cost $335,000
Resale (2 x $190,000) $380,000
Profit $44,500
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