Karen Baldwin – Morphett Vale (O’Sullivan Beach Rd), SA
Property Development Graduate
Background
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.
Drawings
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 |
