Having been greatly inspired by my fellow PCers, I thought I'd share a recently development I've worked on which is due for settlement yielding good returns in relatively short period of time. I learnt lot from this project especially since I am still relatively new to developments, joining near the end of SS days. Hope this helps people understand that money can made even when everyone was hesitant during about the Perth downturn. Where: Shelley Price: $1.735m ($1.818m inc stamps and fees) Development Cost: $200k inc all siteworks & consultant fees What: Subdivide a 1861sqm R20 lot into 4 smaller lots and sell as vacant lots (408, 481, 418 & 393sqm) Strategy: Cash purchase by a foreign client of mine. Subdivision needed to occur in two stages in order to obtain 4 lots. Plans: Please see below. Sales: All 4 lots sold in total for $2.487m. Summary: 23% ROI in just over 1 year Timeline: Offer: 22nd February 2017 Settlement: 5th May 2017 Stage 1 DA obtained: 18th August 2017 Stage 2 DA obtained: 20th November 2017 Titles Obtained: Stage 1 lots on 10th May 2018, Stage 2 lots on 16th May 2018 Settlement: Stage 1 lots on 24th May 2018, Stage 2 lots on 6th June 2018 iDex.
That’s really impressive. A short turnaround and a good return. Even if you were fully geared you would make a profit. Are those numbers ex Gst? It still makes money if it doesn’t.
Just a note that WAPC has revised DC 2.2 to crack down on nested subdivisions (requiring 2 stages to achieve more lots). Whether the new policy can work is unknown but it may not be so easy to replicate what the OP has done. Well done on the project @iDex. Looks like your timing was perfect!
We first subdivided the block into 3 GT lots (Lot 888, 889, 890) then subsequently subdivision 1 GT lot into 2 SS lots (Lot 1 & Lot 2) Numbers are inclusive of GST, but pre-tax. Yes, I have a friend who used a similar strategy but recently got rejected.
Interesting. I wonder if a decision like that would hold up in SAT. @Aaron Sice, @Westminster... what do you reckon?
Excellent result! I saw a few great little subdivision results when the initial interim policy first came out, although the policy is now fine-tuned to stop nested and staged subdivisions (which can be frustrating!), DC 2.2 still has plenty of merit (and we use it to our advantage for our developer clients where we can!)
