About the Client: A married couple who are both working as nurses, have a lot of education and knowledge around property investing but have no time to put the theoretical knowledge into practice as they are shift workers. They have 2 young kids and always work different shifts to be able to look after the kids.
Location: Tasmania- In the center of town next to all amenities
Land size: 1850m2
Strategy: Keep the existing house, renovate, as it has the intrinsic value and builds 3 villas at the back bringing the total properties to 4. Multiple exit strategies, to keep all four dwellings and rent them, sell the existing house and keep 3, etc. The choice is up to the client and their circumstances. The client has DA approved to build 3 at the back ad strata title.
Let’s talk numbers:
- Asking price: $345K
- Negotiated price: $325K
- Client saved: $20K
- Current rental on the existing house while await Approvals and construction: $350/week
- Rental return: 5.6%
- Projected profit if all built and sold is $285K in 12 months.