Equity Created:
The project ended with an equity result of $106,913 after the project management fee.
Rental Returns
1/33: $220 per week
2/33: $260 per week
3/33: $260 per week
4/33: $365 per week
Total rental return: $1,105 per week or $57,460 pa
Gross Yield: 7.3%
The land (with existing house in need of reno) for this development was purchased in August 2006. The purchase price was $245,000. This property was carefully chosen for the client by Property Bloom™ for development for two main reasons:
- The land 1400sqm was large enough to build three new villas whilst keeping the house which could be upgraded.
- The location. The land is located in a peaceful suburb close to two major towns.
The property is located in a quiet street central to all amenities including; approx 200m walk to shops and post office, playing fields and parkland are within 1km, within 2.kms to a hospital, 400m to a primary school, within 1km to a high school, 1km to bowling club.
Approx. internal living area of Renovated House: 80sqm
Internal living area of Villa 2: 115sqm
Internal living area Villas 3 & 4: 89.5sqm
Area of land assigned to each villa
Renovated house ~ 306sqm
Villa 2 ~ 262sqm
Villa 3 ~ 248sqm
Villa 4 ~ 250sqm
Project Costs:
| Purchase price for 1400sqm land with two bed house: | $245,000 |
| Set up costs | $11,007 |
| Renovations* to existing house, includes 3rd bedroom: | $32,123 |
| Cost to construct a duplex and free standing house | $465,561 |
| Extras for project paid direct to save: | $38,576 |
| Total Costs | $792,267 |
*Renovations included creation of 3rd bedroom, new kitchen, new bathroom, internal and external painting, carpet, window coverings, guttering, front veranda balustrade, picket fence, site clearing of sheds.
Final Valuations in 2008:
| 1 Renovated Three Bed House: | $190,000 |
| 2 Free standing Two Bed House: | $255,000 |
| 3 Three Bedroom attached Villa: | $250,000 |
| 4 Three Bedroom attached Villa: | $250,000 - sold for $265,000 |
| Total: | $945,000 |
