The project ended with an equity result of $98,448 after the project management fee. Plus Villa 2 sold $20,000 above valuation on completion.
Total equity created for clients $118,448.
Villa 1: $240 per week
Villa 2: sold for $255,000
Villa 3: $240 per week
Villa 4: $250 per week
Total rental return in 2008: $730 per week or $37,960 pa (for the 3 villas)
6.75% gross yield
The land (with existing old house) for this development was purchased in May 2007. The purchase price was $228,000. This property was carefully chosen for the client by Property Bloom™ for development for two main reasons:
- The land was DA approved to build four x 2 bedroom villas.
- The location. The land is situated IMMEDIATELY behind the main shopping street and CBD.
The property is located in a quiet street extremely central to all amenities including; approx 200m walk to shops and post office, playing fields and parkland are within 1km, within 2.kms to the hospital, 400m to a primary school, within 1km to a high school, 1kms to a bowling club.
Internal living area of villas 1 & 2: 68sqm
Internal living area of villa 3: 69sqm
Internal living area of villa 4: 84sqm
Area of land assigned to each villa
Villa 1 ~ 179sqm or 17.7%
Villa 2 ~ 150sqm or 14.8%
Villa 3 ~ 153sqm or 15.1%
Villa 4 ~ 182sqm or 18%
Common Property ~ 34.4%
|Purchase price for 1012sqm DA Approved land||$228,000|
|Set up costs||$ 8,219|
|Cost to construct four Villas; 2 freestanding, 2 attached||$510,252|
|Items handled directly by PM to save||$ 69,766|
Final Valuations in 2008
|Villa 2 - Sold on completion for $255,000:||$235,000|