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.