Dual income & Land banking for future townhouse development

About the client: Experienced investor and developer looking for a townhouse development site they can hold for a while with a rental return as he completes a few projects. This is to make sure he does not lose money while waiting for due diligence, approvals and funding.

  • Location: Newcastle, NSW
  • Land size: 2400m2
  • Strategy: Dual rental income on the existing 2 houses before demolition. Zoned R2 with the potential to build 8 townhouses.

Let’s talk numbers.

  • Asking Price: $1050Mil
  • Purchase price: $1010Mil
  • Client saved: $40K
  • Current rental combined: $900/week
  • Rental Return: 4.45%