Hi,
I believe I have spotted an opportunity to make some profit through a duplex development but I do not have the capital to get started.
Basically I am interested in a 1024sq block of land in a small Hunter Valley township about an hour from Newcastle. The area is surrounded by coal mines with similar duplexes to what I am looking to build renting for $280/week.
With the proposed F3 link to Branxton due to be completed in the next 10 years this town will become more like 35-40mins to Newcastle max.
Here are the numbers:
Land $100k
Building costs $285k (max)
Stamp duty/legals $ 15kTotal cost $400k
My plan is to sell 1 for $250k(min) pay down the loan and then rent the other as a source of income. Then sell in 12 months or hold if cashflow+. With only $150k loan remaining and assumed rental of $280/week property is CF+ by $100/month based on 8% interest rates. Of course, lower rates = greater CF+.
Please pick this to pieces as I'm sure it's not perfect. Anyone interested can also contact me.
Regards
Veg.
Did you end up doing anything in Branxton?? Curious, I have been eyeing the same area too.
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