45% return in 1 year

Not bad at all, but not as good it seems.

I have no idea what the DA would have cost, but if it were 25k, the overall return after costs in the past year would have been about 25%.
Plus any rent achieved in that time.
A lot of Sydney would have done 25% in the same period.
 
BIL just told me someone very recently bought some land in Tamworth for $2.2M and flipped it for $25M or there abouts in 15 months so...
 
sanj said:
Yeah, without looking at those plans imo you'd struggle to justify paying more than 1.3m for that site imo. Even that would be a struggle
Click to expand...

Agree that's a very optimistic asking price. I can't see the sums working, for presumably 2x1 apartments in Baysie, at the cost base.
 
GimmeProperty said:
Hats off to the person that bought this place a year ago for 950k and just sold today for 1.375m with DA approved plans.

Either the original 950k was a bargain or the 1.375m is an elephant of a price (for a rebuild with construction risk).. prob both

www.realestate.com.au/property-house-nsw-rozelle-119603955
Click to expand...

Actually , once you take into account , holding costs , cost of the DA , stamp duty on the way in and agents fees on the way out , I think you'll find the actually profit IS SIGNIFICANTLY LESS .

Cliff
 
Hey, it beats a day job 9.00 till 5.00, these guys pay tax too.
If you structure correctly you pay 30% tax and you pay for plans and permits $15-20k not much effort, other than securing the right site

Mtr)
 
Last edited:
sumterrence said:
I suppose only if they use cash to purchase the site, think about the holding cost for 12 month....
Click to expand...

Never use cash to purchase a site, use OPM (other peoples money), pay holding fees during this period, if you are making gross profit of 30-40% you are way in front.
 
One on the med reps I see bought a unit in castle hill for around 330 in 2007 .

Land rezoned to high rise and her unit is now valued at over 2 mill .

The strata is in the process of joining together to sell . There are a few owners interested ...

Cliff
 
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