delicious developments
DESCRIPTION
Delicious Developments . www.renos.com.au | [email protected] | 1300 550 656. Introduction. Case Study 1: Developing the Undevelopable Case Study 2: BTR Case Study 3: Developing the Renovator. Case Study 1: Developing the Undevelopable. Number 20Number 18. - PowerPoint PPT PresentationTRANSCRIPT
![Page 2: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/2.jpg)
• Case Study 1: Developing the Undevelopable
• Case Study 2: BTR• Case Study 3: Developing the Renovator
Introduction
![Page 3: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/3.jpg)
Case Study 1: Developing the Undevelopable
Number 20 Number 18
![Page 4: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/4.jpg)
Case Study 1: Developing the Undevelopable
![Page 5: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/5.jpg)
Case Study 1: Developing the Undevelopable
Look at my new land sizes:
![Page 6: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/6.jpg)
Case Study 1: Developing the Undevelopable
Site Plan Street Elevation
![Page 7: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/7.jpg)
Case Study 1: Developing the Undevelopable
You just heard about scrapping
From this… …to this
![Page 8: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/8.jpg)
Case Study 1: Developing the Undevelopable
Equals this!
![Page 9: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/9.jpg)
Case Study 1: Developing the Undevelopable
![Page 10: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/10.jpg)
Case Study 1: Developing the Undevelopable
![Page 11: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/11.jpg)
Case Study 1: Developing the Undevelopable
Summary• Non-development sites can often be development sites if you think outside the square• The best place to buy is often in your own backyard…like your neighbour!• Employ the experts• Have at least a basic understanding of the rules• Demonstrate what you want by showing similar projects• If you believe something is possible but you are told ‘no’ ask again another way or ask someone else• Scrapping is great!• Opportunities exist everywhere!
![Page 12: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/12.jpg)
Case Study 2: BTR
![Page 13: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/13.jpg)
Case Study 2: BTR
This property made me over $1 million…during the ‘worst financial crisis since World War 2’
Let’s take a look at how I did it.
![Page 14: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/14.jpg)
Case Study 2: BTR
I’ve done my research
![Page 15: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/15.jpg)
Case Study 2: BTR
There were two reasons why I was keen to buy this despite the other client’s poor feasibility1. I already knew I had made 98k!2. I used a different feasibility
![Page 16: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/16.jpg)
Case Study 2: BTR
Build to Sell doesn’t work for me…it just creates a tax problem!
Capital gains taxPLUS
I have an existing land tax issue
![Page 17: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/17.jpg)
Case Study 2: BTR
So I want to…
B.T.R. …and
If building to HOLD then design to HOLD!
![Page 18: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/18.jpg)
Case Study 2: BTR
And thanks to a comment I heard from Michael Matusik…
I decided to build 10 x 1 bedders to rent!
![Page 19: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/19.jpg)
Case Study 2: BTR
The Construction – flats removed
25th March 2008
![Page 20: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/20.jpg)
Case Study 2: BTR
The Construction – basement dug
17th June 2008
![Page 21: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/21.jpg)
Case Study 2: BTR
The Construction – heading up
2nd September 2008
![Page 22: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/22.jpg)
Case Study 2: BTR
Full height scaffold – roof time!
9th December 2008
![Page 23: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/23.jpg)
Case Study 2: BTR
Walls battened and ‘rough-in’ complete
28th January 2009
![Page 24: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/24.jpg)
Case Study 2: BTR
Rendering and painting
11th February 2009
![Page 25: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/25.jpg)
Case Study 2: BTR
The finished product – July 2009
![Page 26: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/26.jpg)
Case Study 2: BTR
The finished product – July 2009
![Page 27: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/27.jpg)
Case Study 2: BTR
The finished product – July 2009
![Page 28: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/28.jpg)
Case Study 2: BTR
So what went wrong?• I designed for fully furnished but no one
wanted furniture!• As a result…washing machine…
fridge..queen bed• Bloody energy saving light bulbs• Storage area vs water meters• Broadband cable• Ponding• White courtyard tiles
![Page 29: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/29.jpg)
Case Study 2: BTR
COSTS $Purchase 532,000Costs 26,000Consultants/Appl. 72,215Build/Inf. Charges 2,191,158Holding 89,115Total 2,910,488
![Page 30: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/30.jpg)
Case Study 2: BTR
END VALUEValue @4.5% yield
$3,952,000Equity $1,041,512or 35.8%Rent $3,420pw
$177,8406.11% gross + Dep.
![Page 31: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/31.jpg)
Case Study 3: Developing the Renovator
![Page 32: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/32.jpg)
Case Study 3: Developing the Renovator
Paid $514k as a renovator…worth $580k as a development site!
![Page 33: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/33.jpg)
Case Study 3: Developing the Renovator
• Develop• “The price reflects the need for lots
of work”
![Page 34: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/34.jpg)
Case Study 3: Developing the Renovator
• 592m2 corner site• Zoned for units/townhouse/SUDs• House must be kept• Can build to 2 storeys
![Page 35: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/35.jpg)
Case Study 3: Developing the Renovator
The site
![Page 36: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/36.jpg)
Case Study 3: Developing the Renovator
The site
![Page 37: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/37.jpg)
Case Study 3: Developing the Renovator
![Page 38: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/38.jpg)
Case Study 3: Developing the Renovator
![Page 39: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/39.jpg)
Case Study 3: Developing the Renovator
The numbers:
TOTAL COSTS $1.095mEnd value renovated house $575kNew house $775kTOTAL END VALUE $1.35m
Equity gain $255kReturn on development costs 23.3%
That’s the power of a quick reno and a small development.
![Page 40: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/40.jpg)
Case Study 3: Developing the Renovator
![Page 41: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/41.jpg)
Summary
• Employ the experts• BTR or BTS• RDC!• Look for development sites at non-
development prices for long term gains and options
• The 20% margin rule is misleading
![Page 42: Delicious Developments](https://reader035.vdocument.in/reader035/viewer/2022081512/56816739550346895ddbec9b/html5/thumbnails/42.jpg)