Karen Baldwin – Reynella, SA
Property Development Graduate
Background
Karen found this deal by utilising RP Data to target a few key suburbs with particular parameters. She focused on targeting off-market deals and sent out over 1200 letters. This particular owner has lost his wife to illness in recent years and just wanted to move on from the property. Karen made an offer for $275,000 and was able to secure the property. She then subdivided the property into 2 subdivisions and was able to make a combined profit of $113,000.
The Number
These cost include estimated cost of development and estimated profits.
| Expenses | Cost |
|---|---|
| Purchase price | $275,000 |
| Purchase costs | $15,000 |
| Subdivision/demolition/contingency/holding | $55,000 |
| Finance costs | $12,000 |
| Total cost | $357,500 |
| Resale (2 x $235,000) | $470,000 |
| Profit | $113,000 |
