Just wondering if the experienced developers can run over these number for me.
Considering a development in the outer newcastle area, may be using a experience project manager, to help with the first devel.
Two possible senarios
1) project 1
purchase exisiting older house on block no smaller then 1000m2 $200000
stamp duty etc $8000
renos to exisiting house $20 000
build 2 x 2bd units/villas on block $320K
water and council dveloper charges $6k
subdivision cost $10K
total around $564K
After completion
renovated house = $190K
2x2 units = $245 each
potential equity $680K
Rental return older cottage weekly rent $220p/w
villas $250 p/w each
approx $37 440 per yr in return , yield around 6.6%
2) project 2
Purchase vancant land $160K
stamp duty $7k
build 2 x 3bd units $400K
water and council dveloper charges $6k
subdivision cost $5k
total around $578k
on completion approx
2x 3bedder units/ villas @$340K each
potential equity $680K
units to rent out at $350 p/week
annual return of $36000
yeild of 6.3%
Do these figures look about right???
please any comments.
Considering a development in the outer newcastle area, may be using a experience project manager, to help with the first devel.
Two possible senarios
1) project 1
purchase exisiting older house on block no smaller then 1000m2 $200000
stamp duty etc $8000
renos to exisiting house $20 000
build 2 x 2bd units/villas on block $320K
water and council dveloper charges $6k
subdivision cost $10K
total around $564K
After completion
renovated house = $190K
2x2 units = $245 each
potential equity $680K
Rental return older cottage weekly rent $220p/w
villas $250 p/w each
approx $37 440 per yr in return , yield around 6.6%
2) project 2
Purchase vancant land $160K
stamp duty $7k
build 2 x 3bd units $400K
water and council dveloper charges $6k
subdivision cost $5k
total around $578k
on completion approx
2x 3bedder units/ villas @$340K each
potential equity $680K
units to rent out at $350 p/week
annual return of $36000
yeild of 6.3%
Do these figures look about right???
please any comments.