Project: 2 unit development
Student of the Property Course and Melbourne resident Stephen Borg has just completed his first property development project which resulted in $140K profit in only 18 months. This translates to a successful 26% return on investment.
Two years ago aged 22, the aspiring and inexperienced property developer Stephen purchased Property Course to learn all he needed to know about how to develop property. He says, “After hearing about the success a friend had with property development, I became interested in getting started on a project”.
Getting a DA:
It only took 18 months for Stephen to complete a two unit development – from the time of applying to council for the permit, to the settlement of a sale. He also negotiated a 6 month settlement, with the vendor willing to sign any applications made to council during this time to arrange for the DA. This tactic was picked up directly from our property course.
Stephen purchased a second development 12 months ago with a 12 month settlement. The site is expected to return the same 26% or in this case a $210K profit. However, this time the development is a three unit site and Stephen has experienced difficulty dealing with the council, as they knocked back the first set of plans submitted.
After recently attending our one day property development seminar, Stephen is now exploring the option of commercial finance – a strategy he learned from the finance presentation. Stephen says, “This option will allow for better cash flow, which I encountered as a problem on my first project.”
Stephen expects to commence this second project in 2011.