Equity Created:
The project ended with an equity result of $106,898 after the project management fee.
Rental Returns
The 2 villas are leased for $380 per week each:
Total rental return (in 2013): $760 per week or $39,520 pa
Gross Yield: 7%
The land for this development was purchased in January 2012. The purchase price was $150,000. The low price was because the land was undermined. This meant we had to have specially engineered footings and foundations all approved and guaranteed by the Mine Subsidence Board. After approval of the plans and inspection of the building process which involves Pot Hole Footings, the Board will guarantee the structure for life. This property was carefully chosen for the client by Property Bloom™ for development for two main reasons:
- The land was large enough for a duplex development.
- The location. The land is situated in a new land estate within walking distance to a major shopping centre. This location is highly sought after due to it’s proximity to shopping, transport and the best private school in this city.
·
Internal living area of three bedroom, two bathroom villas: 112sqm
|
Total Project Cost, including land, DA, CC, build cost and subdivision: |
$575,541 |
Final Valuations in 2013:
|
Villa 1: |
$370,000 |
|
Villa 2: |
$370,000 |
|
Total: |
$740,000 |
