REQUIREMENT: $400,000 and ability to service a $2,000,000 bank loan for 12-18 months
PURPOSE: To purchase a 1350 sq m block of land
Location: Malvern East, VIC, 13 km from CBD
Property Features:
Zoned Residential Growth Schedule 1. Allowed height up to 13.5 m
Property is on an arterial road
Located 500 m from Chadstone Shopping Center, the largest shopping center in the Southern Hemisphere
Economy: Average house price is $1.2 million in the suburb
Economy: Chadstone is undergoing a $480 million expansion. Estimates are for another 3000 permanent jobs
Walk score of 72 (very walkable)
Distance to train station 750m
Distance to TAFE 400m
Project Plan:
Purchase the property for approx. $3.4 million
Secure planning approval for a four-storey apartment block with underground parking (estimated cost $240,000)
Initial consultation with Council was very positive. Proposed idea is within guidelines for RGZ zoning
Initial consultation with Architect resulted in an estimated 32 units in the development
Exit Strategies:
(1) Sell the land with Planning Approval for an estimated $5 million. Estimated net profit of $1,637,000
(2) Sell units off the plan and secure development financing to construct the proposed building for a total project cost of $10,051,000 (ex land) and estimated net profit of $4,409,000-
This topic was modified 8 years, 11 months ago by
Roger Branch.
buy $3,400,000 , stamp duty $187,000, planning fees $240,000 sel for $5,000,000 profit exit strategy 1 is $1,173,000 not $1,637,000.
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This topic was modified 8 years, 11 months ago by
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