Firas is an experienced builder who we’ve bought a few properties for.
He likes to keep things low risk, but is able to think outside the box a bit. This project stacks up really well on paper, but what really made it stand out is the extra 82 square meters that are incorporated onto the block but not actually on title.
Without getting into the geeky details, Council owns a disused strip of land next door to the block that is fenced into it already. Basically, any knowing buyer would value the fact that the strip can practically feel like part of the block but never has to be paid for.
Brand new, quality houses sell for big money in the pocket of this suburb. Thankfully, competition from other knowing builder/developers was non-existent because nobody else examined the Title in detail to learn that the old dwelling could be demolished without affecting the adjoining neighbour as long as the existing shared party wall was reinforced.
I secured the property at auction while on the phone to Firas. He progressed quickly to design.
Affluent suburb, walking distance to transport, shops, parks and schools
Flat rectangular 456m2 block PLUS 82m2
Original semi-detached 2bed/1bath brick veneer
up to $1.520m
Purchase At Auction
House $1.690m | Unit $0.660m
8.0% p.a. over last 10 years
Suburban feel but close to everything - transport, shops, cafes
An extra 82m2 usable land unpaid for; safe, quick, straightforward project
Design and build a single quality house without Council interference
18 months from purchase to completion
$2.650m to completion
Harvey is a big earner, building a portfolio of negatively geared properties with value-add
Price : $1.850m
Location : Blue chip, affluent, close to hospitals, transport, shops and parks
Scope : 3 large, quality, detached houses
Profit : $0.900m
Return on Cash : 48%
Jim semi-retired from finance young and is building an impressive portfolio
Price : $0.950m
Location : Urban, gentrifying, with good transport and access to CBD
Scope : 4 attached street-facing townhouses
Profit : $0.475m
Return on Cash : 45%
Jack asked us to JV with him on a bigger site, and this made sense for us both.
Price : $2.125m
Location : Quiet, leafy, family-oriented with top schools and shops
Scope : 8 townhouse with dual access
Profit : $0.675m
Return on Cash : 58%