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OUR PROPOSAL
We
will show you how you can make the developer margin on your own 2 unit
development, a projected profit of over $61,000 based on current market sales.
For
all intents and purposes you are buying your properties $61,000 under current
market value,
We
will introduce you to a locally based construction company who specalise in this
type of project. They will then build and oversee the project from lodging plans
to council right through to the landscaping all done under Fixed Time and Price
Building.
You
can then choose from 10 blocks we have reserved in Vineyard Grove that are
suited for this development
We
will arrange to finance the development using one of many Banks and Financial
Institutions that we are accredited with.
Here is how the numbers work:
|
The
land is purchased
|
$156.000 |
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We
enter into a Fixed Price Building Contract |
$407,400
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Total |
$563,400 |
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We
arrange for Land & Construction Loan @80% |
$450,720 |
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Funds we have to find
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Construction Loan Shortfall |
$112,680 |
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Stamp Duty and Legal Costs |
$ 9,000 |
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We even set aside the Interest Costs for the
entire project |
$ 16,349 |
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Our total investment |
$138,029 |
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Project Development Income |
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Independent Current Valuation at completion |
$650,000 |
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Less
Land and Construction Loan |
$450,720 |
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Less
your Total Investment |
$138,029 |
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What’s left is Your profit – The Developers margin |
$ 61,251 |
How
do we fund it!
Basically you will need to have access to either $138,000 in savings or more
commonly as equity in your home. To access the equity we simply refinance your
existing home to be able to access this equity
Its even better if you don’t have to borrow the money
If
you have access to the $138,000 without having to borrow your return will be all
the greater as you do not have to pay the interest component.
In
this case your return will be:
|
The Developers Margin |
$61,251 |
|
Interest not paid |
$16,349 |
A
whopping profit as Equity of $77,600 |