Thats the plan Stan!
This is development project number 2, my aim is for 20% ROI in 12 mths. My first project wasn't so crash hot so this one I have better hopes for, you can check out my other thread here: http://somersoft.com/forums/showthread.php?t=96564
STRATEGY:
Purchace corner allotment within 10km of Adelaide CBD
Subdivide off back yard
Retain the front house and renovate
Sell off the vacant lot and renovated house ASAP to realise quick cash gains
Rinse and repeat.
COST/PROFIT:
$445,000 purchace price
$25,000 stamp duty/ title transfer/ conveyance/ sundries
$30,000 renovation
$30,000 subdivision
$8,000 MLI for 90% loan
$12,000 holding cash flow neg over 12 mths (only vacant 2 mths for reno) rent@ $350pw)
$550,000 TOTAL SPEND OVER 12MTHS
$270,000 end value of vacant land
$390,000 end value of renovated 3 bedroom house on courtyard block
$660,000 COMBINED END VALUES
$110,000 CAPITAL GAIN = 20% RETURN ON ALL MONEY INVESTED
I will continue to update this thread over the coming 12 mths to show you all step by step the process I undertake to achieve this outcome and to share the inevitable challenges that will pop up along the way.
This is development project number 2, my aim is for 20% ROI in 12 mths. My first project wasn't so crash hot so this one I have better hopes for, you can check out my other thread here: http://somersoft.com/forums/showthread.php?t=96564
STRATEGY:
Purchace corner allotment within 10km of Adelaide CBD
Subdivide off back yard
Retain the front house and renovate
Sell off the vacant lot and renovated house ASAP to realise quick cash gains
Rinse and repeat.
COST/PROFIT:
$445,000 purchace price
$25,000 stamp duty/ title transfer/ conveyance/ sundries
$30,000 renovation
$30,000 subdivision
$8,000 MLI for 90% loan
$12,000 holding cash flow neg over 12 mths (only vacant 2 mths for reno) rent@ $350pw)
$550,000 TOTAL SPEND OVER 12MTHS
$270,000 end value of vacant land
$390,000 end value of renovated 3 bedroom house on courtyard block
$660,000 COMBINED END VALUES
$110,000 CAPITAL GAIN = 20% RETURN ON ALL MONEY INVESTED
I will continue to update this thread over the coming 12 mths to show you all step by step the process I undertake to achieve this outcome and to share the inevitable challenges that will pop up along the way.
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