Yes I’m just about to start another build, it is on two titles. We bought the site, it was a vacant block of land on two titles, so the subdivision was already done, so we saved on subdivision costs, we negotiated a 6 month settlement for our client and in the meantime we got all the information together to lodge the Building DA into Council to process. This was all done while we had no money in the deal as it hadn’t settled yet! The original owner had been trying to sell the site for a while, we negotiated a lower price and the long settlement. It’s on a corner block close to childcare, town centre etc, at the end of the project the client should make around the $200K mark, end up with 4 x 2b villas, all up the whole acquistion if all goes to plan will be around $760K, and with tax depreciation they will come out (depending on their income for that year) cashflow positive or just on neutral, they will have 4 dwellings to rent out and still have more room for capital growth because there is alot of infastructure planned for the area we work in! That’s why we have choosen it.
Every Development that I do is different, so I’m learning alot as I go, as long as our feasability stacks up in the beginning and we have a buffer built in it’s all systems go! The first slab was layed yesterday, the second will be early next week. My client by the way is my accountant so he obviously knows his numbers and a good deal when he sees it! This is his second project with us.
Stay tuned!
