The deal is a couple of kilometers from the Brighton beach as the crow flys. The feel of the area is tranquil, away from the bustle, not up market but working class, you feel a sense of quiet once you get there. There is elderly neighbors and it seems owner occupied mostly in the street from the best I can gather. Thier is a huge natural bush park and swamp directly across the road and all along the other side of the street, nothing will ever be built there to take the natural bush and views away. There are about 174 hectares. Peace Park facebook page is here. The land is 1427 square meters. The strategy is to put two new blocks at the front and a battleaxe driveway block down the right-hand drive looking from the street to a 600-meter block at the rear. Sewage can go in the existing pipe through the center of the property. Stormwater through rear neighbors for 13k and the two front lots to the street.
As you know I’m a numbers man so here are some of the basic numbers. You can see more in-depth feasibility and a shared Google spreadsheet in this page made specifically to bring updates about the deal as it unfolds.
Deals like this are great to be involved in as a joint venture. For me, the deal “fits” because 1). I can reside at the vacant lot in my campervan. This doubles as security while I’m on site for the developer. 2). I get the first-hand experience learning on the ground. Always learning. 3). It moves the development forward for the developer faster. Time is everything in this game, which developments are by nature and council processes is always a slow one, moving things forward is always the best option to take.
These are the more refined numbers as the costs and details got clearer and the deal unfolds. The numbers always change in a deal what you try to do is get within 95% or real and the rest varying, either way, is acceptable plus a 5-50% contingency.
TOTAL INCOME COSTS
|Stamp duty on purchase||18063|
|Settlement costs, lawyers||1000||$691,063|
|Build 2x houses||340000|
PROFIT % ON COSTS
|House 1 per week||550||$28,600||per annum|
|House 2 per week||550||$28,600||per annum|
|House 3 per week||550||$28,600||per annum|
|Less costs 10%||$8,580|