Blacky and Westminster have combined super powers and in depth knowledge in fork ups to do a project together.
Mission: get in, get out with minimal dramas (oh mwahahahaha)
Site: found. Under offer with due diligence clause. Had been for sale for approx 2 years. We got a great discount (listed from $565k and offer accepted at $480k)
Plans: we have a concept plan to build 4 apartments which are 3 x 2 with marina views. Each apartment is around 120-130sqm. Due to the slope of the block, lower at front, high at back, units 1 & 2 are 2 storey more like townhoues, and 3 & 4 are narrow side by side apartments laying over. Parking is from the rear laneway.
Due diligence / finance: these clauses are concurrent. We have 21 days left on this. Finance will be a commercial loan
Costs:
Very rough at the moment but
Land $480 plus stamps (let's say $500k)
Construction turnkey plus all works $1-1.2m
Total Cost $1.5-1.7m
Values
Ultra conservative (15% drop in market) $600k each = $2.4m*
Conservative (5% drop) $650k each = $2.6m
Happy as Larry (known sales in area) $700k each = $2.8m
OMFG (hit target market & market up) $725k each = $2.9m
OMFG ...............
* this is the value we are using for all ROI.
Risks:
This is a riskier market being so far from Perth. It's more volatile so we are using very conservative figures before proceeding.
Demographic Target:
Mindarie is mainly UK and South Africans - almost 66% are non Australian. We are thinking these apartments will appeal that demographic and/or downsizers in the area who want to still have the marina life but not the upkeep. They will also appeal to investors who want to do short term stay lets.
Views: taken from our next door neighbour
Our neighbour
Middle floor views
Top Floor View
We hope to get some ocean views too
Mission: get in, get out with minimal dramas (oh mwahahahaha)
Site: found. Under offer with due diligence clause. Had been for sale for approx 2 years. We got a great discount (listed from $565k and offer accepted at $480k)
Plans: we have a concept plan to build 4 apartments which are 3 x 2 with marina views. Each apartment is around 120-130sqm. Due to the slope of the block, lower at front, high at back, units 1 & 2 are 2 storey more like townhoues, and 3 & 4 are narrow side by side apartments laying over. Parking is from the rear laneway.
Due diligence / finance: these clauses are concurrent. We have 21 days left on this. Finance will be a commercial loan
Costs:
Very rough at the moment but
Land $480 plus stamps (let's say $500k)
Construction turnkey plus all works $1-1.2m
Total Cost $1.5-1.7m
Values
Ultra conservative (15% drop in market) $600k each = $2.4m*
Conservative (5% drop) $650k each = $2.6m
Happy as Larry (known sales in area) $700k each = $2.8m
OMFG (hit target market & market up) $725k each = $2.9m
OMFG ...............
* this is the value we are using for all ROI.
Risks:
This is a riskier market being so far from Perth. It's more volatile so we are using very conservative figures before proceeding.
Demographic Target:
Mindarie is mainly UK and South Africans - almost 66% are non Australian. We are thinking these apartments will appeal that demographic and/or downsizers in the area who want to still have the marina life but not the upkeep. They will also appeal to investors who want to do short term stay lets.
Views: taken from our next door neighbour
Our neighbour
Middle floor views
Top Floor View
We hope to get some ocean views too
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