Three Unit Development including existing house and subdivision
After completing the house renovation and the two lot Torrens Title subdivision, clients decided to sell off the older house and put project on hold whilst we watched and waited to see what impact the Global Financial Crises may have on Australia. Work recommenced in April 2011 and the construction of the duplex moved along very quickly and without delays. Building works were completed ahead of schedule within five months.
Equity Created:
The project ended with an equity result of $151,155 after the project management fee.
Clients received strong depreciation benefits of approximately $12,000 in Year 1 (from the duplex only)
Rental Returns
The 3 bedroom house was sold after completing the subdivision
The 2 villas are leased for $350 per week each:
Total rental return (in 2012): $700 per week or $36,400 pa
Gross Yield: 8.79%
The corner block with 3 bed house for this development was purchased in October 2008. The purchase price was $200,000. This property was carefully chosen for the client by Property BloomT for development for two main reasons:
- The land is an 1012sqm block with house that needed just a small renovation.
- The location. The property is situated in Kurri Kurri, a fast growing town of the Lower Hunter that is benefiting from an interchange that will come off the Hunter Expressway giving the town quick access to the F3 and bringing more trade to the town by motorist stopping there.
Internal living area of villa 1: 92sqm
Internal living area of villa 2: 92sqm
Total Land Area for each villa
Villa 1 ~ 248sqm
Villa 2 ~ 228sqm
Project Costs:
| Purchase price for House on corner 1012sqm land: | $200,000 |
| Set up costs | $ 8,735 |
| Renovations to house | $23,062 |
| Two lot Torrens Title subdivision, included kerb and guttering required | $38,326 |
| Cost to construct duplex | $325,829 |
| Total Costs | $595,952 |
Final Valuations in 2011:
| Three bed house sold on 468sqm: | $182,000 |
| Villa 1: | $315,000 |
| Villa 2: | $315,000 |
| Total: | $812,000 |
