KELLYVILLE DUPLEX DEVELOPMENT MAKES $1 M PROFIT
Let’s crunch some numbers on this project in Sydney’s north-west. This project was a Kellyville Duplex built in 2016.
COST OF LAND
This was $620,000 – sold by the agent as a residential block for a single dwelling. What they didn’t know is it was possible to build a duplex.
COST OF BUILD
This was $600,000 for the whole build.
TOTAL PROJECT COST
HOW MUCH WOULD EACH DWELLING SELL FOR?
$1.1 million – that’s $2.2 million for the whole thing.
AMOUNT OF PROFIT ON THE PROJECT
$1,000,000 – nice!
HOW TO GET THIS SORT OF DEAL
Turns out the agent didn’t realise you could build duplexes on this lot. They sold it as a standard residential block which meant it was priced below market value.
The client capitalised on this and built two dwellings for the price of one.
WHAT COULD YOU DO WITH THIS SORT OF PROJECT?
This is the sort of project that makes consolidating an established foundation portfolio a piece of cake.
If you already have an asset base with a good cash flow, a build such as this can help you pay down some of the debt in nice big chunks.
Alternatively, if you were looking for a brand new place to live, a duplex development that is built below market value may enable you to pay off your mortgage using rental income. In other words, you could live in one of the duplexes and rent the other one out.
Project builds can be very lucrative – if you line them up to be!
Have you made money off a project build? Please share your experiences in the comments section below.
* the actual profit figures were checked after recording of this video. They were found to be higher than stated in the video . The written article used the most recent figures.