Figures below are based on an actual 3 villa development
|Purchase price for 1000sqm land:||$193,000|
|Stamp duty and purchase costs:||$9,000|
|Build 3 x 3 bedroom villas on the block:||$665,000|
|Council Developer Charges:||included in build cost|
|Strata Subdivision:||included in build cost|
Note: Interest payments are not included as a project cost. Clients may benefit from tax rebates on interest and are advised to seek accounting advice. Land costs will vary based on location and land size. Construction costs will increase with time.
End Value is Determined by an Independent Valuation
Actual valuations of the new three bedroom units were $340,000 each.
This gives a total end valuation of $1,020,000.
The difference between the cost $867,000 and the future value of $1,020,000 creates equity of $153,000 in approximately one year.