Inspire. Educate. Mentor. Invest.

Blog

How to make $500,000 profit through property development

August 8th 2017

How to make $500,000 profit through property development

While in Brisbane, Sasha visits a property that we recently purchased for a client, and goes over the development plans, as well as how YOU can make huge profits in property development.

What’s up, everybody? Sasha Hopkins here from the A Team. I’m certainly not in Melbourne today. I’m in very, very sunny Brisbane, for those that aren’t aware. Did an important, quick run up to Brisvegas to check out … basically to do a development run. One of our strategies, as you guys will probably be aware, is that we do property development. So, we’re spending today … meeting with builders, speaking with agents about proposed or prospective developments sites, our existing development sites, and also basically meeting with new people to form new connections so that we can keep getting more of these amazing development sites before they come onto the market for our clients.

Basically I’m standing at the front of one of the sites that we currently have under offer that we’re going through due diligence. I’m not going to tell you where it is, but it’s five kilometres from Brisbane CBD and it is basically on about an 800 square metre block. You can see the existing house behind me … a traditional Queenslander … so I’m gonna walk you through now … through the property. What we’re looking to do with this one is basically … this is a … we’re doing this project with a fantastic client of ours.

What we’re looking to do is renovate the existing dwelling. I’ll show you that … you can see in under here. We want to renovate the existing dwelling, have the main living downstairs and bedrooms upstairs, so it’ll probably be a 250 square metre home.

Now, I’ve just come out the back. You can see it’s actually also got a granny flat out the back, so we will rent it out very well. Probably upstairs, downstairs and out the back we’ll rent it out for a total of about $1,000 a week whilst we get our DA … development approval … through council. So, very, very good cash flow whilst we’re holding the property, so it’s probably actually gonna be positively geared just from the rent alone, which is awesome.

Continuing to walk around, now you can see the backyard. We will be demolishing the granny flat out the back. You can see the backyard here. I’ll give you a better angle of it now. Basically, what we’re looking to do is build two four-bed double story, double bathroom, double garage, et cetera, out the back, so basically two side-by-side four bedroom, two bath, hopefully double garage houses out the back.

We just met up with the agent and the estimated sales price of the original dwelling … the original four-bedroom Queenslander … will probably go for at least $850K and the townhouses … three-bed townhouses will go for $750K each, so the proposed profit for our client … or for this particular project … we’re looking at around about $500K. So, pretty good money for one particular development. I believe that the return on the investment is over 200% in the space of probably 18 months or so, guys.

I know that that’s a bit of technical lingo there. I hope you can understand it but very, very cool project. This is sort of what we do. Got a number of these happening in Brisbane. Brisbane is a fantastic spot because Sydney and Melbourne, as we know, have been going very, very crazy. Very expensive, so what we can get … the value for money … you know, we’re looking to purchase this property for mid-eights or thereabouts, so we’re buying five kilometres from the city for $850,000 for an 800 square metre block.

So, the value for money is exceptional. Sydney and Melbourne are very expensive in these more blue chip-type suburbs. Once these Sydney and Melbourne people have had enough of too-expensive Sydney and Melbourne, where are they gonna come next? Brisbane. That’s how the markets work. Brisbane always follows the two major markets.

That’s what we’re doing.

Guys, if you want to get involved in this sort of thing, we have our traditional buy-and-hold construction on new-build strategies and then we have development strategies for people that are either more advanced or people that are looking to partner with a team. Maybe limited … they only have a strong income but no cash or cash but no income. We will help you. So, guys, reach out for any questions. That’s it for now. Hope you’ve enjoyed it. Bye.

 

Other Blogs You May Also Like

img

February 9th 2018 7 Steps to Creating a Winning Mindset in Property Investing

There’s a lot to be said for making money in property investing. However, sometimes, it seems as though there’s a lot more being said about

February 1st 2018 Real Estate Investing Mentor: How to Find & Choose The Right Property Investment Mentor

It’s hard to achieve great things alone. If you want to meet your goals, it’s good to have someone by your side who will give you support and a...

February 1st 2018 Property Investment TIps for Millennials

Millennials are often criticised for impulsive spending habits, but truth is, it is possible to have financial freedom and an impressive property port...

February 1st 2018 8 Common Property Investment Mistakes

They say that a mistake is a great teacher.

But wouldn’t it be better if we all learned from the mistakes of others instead?

February 1st 2018 130 Property Investing Quotes

It’s amazing how the words of other people can give you that burst of confidence you need to take the leap and get into property investment. Whet...

February 1st 2018 How Can A Property Investment Consultant Help you?

Real estate is a great way to grow your money and achieve financial freedom. In this day and age, you can get started very easily and you don’t need...

January 2nd 2018 How much money do you need to be earning to live your dream life?

Sasha goes over his design for living his dream life, and discusses how you can do the same. [embed]https://www.youtube.com/watch?v=-SElMqX1200&t=1...

January 2nd 2018 Development Site 7km’s from Brisbane CBD – set to earn a huge profit!

Sasha discusses our plans for a recently purchased block of land in a huge growth suburb in Brisbane, Australia. [embed]https://www.youtube.com/wat...

January 1st 2018 Brisbane’s high growth suburb revealed!

Sasha gives us a tour of one of our Brisbane development sites, while revealing the high growth suburb that it's in... A must watch, if you want to kn...

img
WordPress Image Lightbox Plugin