Sandi Clifford – Reservoir, VIC
Property Development Graduate
Background
Sandra’s strategy for this particular deal will be to a develop 2-4 small townhouses selling some and holding some where possible.
There will be a 12 month settlement, during which time she will be undertaking planning permit application. Her aim then is to demolish and build 3 townhouses as soon as possible thereafter.
The Numbers
These cost include estimated cost of development and estimated profits.
| Expenses | Cost |
|---|---|
| Buy (Money partner) | $500,000 |
| Deposit | $73,700 |
| Self funded | $73,700 |
| Stamp duty | $42,000 |
| Demolition | $20,000 |
| Build & fitout | $792,000 |
| Architect to working drawings | $14,500 |
| Interior designer | $6,000 |
| Consultants/engineers/surveyours & others | $26,460 |
| Landscaping | $30,000 |
| Council rates | $2,800 |
| Legal fees | $8,000 |
| Selling agent | $31,567 |
| Marketing | $39,459 |
| Contingency = 10% | $79,200 |
| Profit to money partners | $29,062 |
| Total cost | $1,268,448 |
| Sale price | $1,880,000 |
| Profit | $611,551 |
Sandra Top 3 Learnings from the property development deal:
- To get out of my own head
- To talk through options and solutions with coach, family, friends, colleagues & facebook group
- The more I think about “what have I done?”, the less actually happens. Not to be over-confident – it makes me do impetuous things like buying at auction without having done sufficient due diligence, leading to the anxiety of “what have I done?”. Never let a day slip by without doing something to advance my progress as a property developer.
