Firas is an experienced mid-sized builder from out of state. When he moved to Melbourne permanently he decided to wrap up his building company and move full time into development.
The vast majority of property developments require Council Planning Applications. Firas pushed us to find him projects where he could avoid the time-consuming (and often, incredibly frustrating) engagement with Council. We explored permitted sites that were ready to build AND blocks where single, brand new houses would sell for big dollars.
Many agents across Melbourne reach out to us with off-market sites and problem listings. This was a problem listing – they initially advertised at too high a price and burned a couple early serious buyers, the came under immense financial and personal pressure to sell. Luke called.. just get him an offer!
Brand new, quality houses sell for $4m+ in this particular neighbourhood. I quickly ran numbers, examined the contract and inspected the property. After sharing my analysis with Firas, he had a few questions that I ran to ground. We met on site, and ultimately secured the property within 72 hours of Luke ringing me.
Originally seeking over $1.5m the vendors dropped the asking price to $1.479m, then $1.450m… We bought it for a crazy $1.350m.
Vibrant, city fringe, full of cafes, bars, shops, transport.
Flat slightly irregular 420m2 block
Tidy but dated 2bed/1bath brick veneer
up to $1.440m
Private Sale, 5 weeks Post-Auction
House $1.780m | Unit $0.700m
8.4% p.a. over last 10 years
Increasingly affluent demographic who pay premium $ for lifestyle amenities
Well under market value, no planning risk, safe and impressive profits
Design and build a single quality house without Council interference
18 months from purchase to completion
$2.370m 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%