How to make nearly half a million dollars...
We got this property http://www.realestate.com.au/property-house-qld-salisbury-110642897 a few months ago for $406 000.
Compare that with other corner blocks in salisbury which are about $490 000 (http://www.realestate.com.au/property-house-qld-salisbury-114490363)
For some reason no one wanted to buy the block, possibly because of it's odd shape or the really run down cottage that was on it.
Today we just got approval to buy the cut out bit of footpath to add an extra 242m2 of land to the 1012m2 block giving us 1254m2 of land so now we can split the block into 3 instead of 2.
We can keep the exisiting cottage, it's currently renting for $350 per week after a $8000 reno, and put two new houses on the other two blocks.
So purchase price was $406 000, 242m2 of land $56 000, move the telephone and water services off of our new land will probably cost about $20 000, to split 2 blocks off is $90 000, plus the $8000 reno.
So a total cost of $580 000.
Those blocks are worth $290 000 each, and the house on the existing block is worth about $360 000. So total net worth = $940 000.
But we aren't stopping there. We will put two removal houses on the new blocks. So $80 000 each for 4 bed removal house stumped on the block. Now the empty blocks have houses on them, and the houses will then be worth $430 000 each.
So the little house = $360 000, the other two at $430 000 each. Total gross = $1 220 000
Total cost = $740 000
Total profit = $480 000
We got this property http://www.realestate.com.au/property-house-qld-salisbury-110642897 a few months ago for $406 000.
Compare that with other corner blocks in salisbury which are about $490 000 (http://www.realestate.com.au/property-house-qld-salisbury-114490363)
For some reason no one wanted to buy the block, possibly because of it's odd shape or the really run down cottage that was on it.
Today we just got approval to buy the cut out bit of footpath to add an extra 242m2 of land to the 1012m2 block giving us 1254m2 of land so now we can split the block into 3 instead of 2.
We can keep the exisiting cottage, it's currently renting for $350 per week after a $8000 reno, and put two new houses on the other two blocks.
So purchase price was $406 000, 242m2 of land $56 000, move the telephone and water services off of our new land will probably cost about $20 000, to split 2 blocks off is $90 000, plus the $8000 reno.
So a total cost of $580 000.
Those blocks are worth $290 000 each, and the house on the existing block is worth about $360 000. So total net worth = $940 000.
But we aren't stopping there. We will put two removal houses on the new blocks. So $80 000 each for 4 bed removal house stumped on the block. Now the empty blocks have houses on them, and the houses will then be worth $430 000 each.
So the little house = $360 000, the other two at $430 000 each. Total gross = $1 220 000
Total cost = $740 000
Total profit = $480 000
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