Over the last few years Developer’s Edge have managed to help many clients achieve extraordinary results in property by using developer strategies with their next property investment. The team at Developers Edge provide a one stop shop approach in helping investors create wealth in property. The key services that the company provides are:
- Identifying suitable properties
- Conducting a feasibility analysis
- Assisting with negotiation
- Conducting a due diligence investigation in order to determine the suitability of the site
- Assist with town planning applications
- Construct dwelling
- Provide regular feedback
- Co ordinate sales or rental
Nick approached us initially in 2005 after a recommendation from Ed Nixon. Nick lived in Canberra, where he worked as a contractor assigned to work for the Defence department. We had several conversations over the telephone on the type of development opportunities available and the funds required for each. In the end, it was decided that we were to look for an old house in an established area that could be subdivided to create two new detached dwellings.
We spent a few weeks looking for an available site and eventually found an old run down house that had been on the market for several months. It was initially listed for $340k however, the vendors were motivated sellers and through some good negotiations we managed to help Nick secure the block for $290k.
We chose to focus our research in the Redcliffe area, as we identified this as an undervalued suburb that had good scope for future growth. Redcliffe is located approximately 30km north of Brisbane and is a highly desirable locality due to its proximity to the water. The other main feature of the area is its position; being on a peninsula and surrounded by water means land supply is limited. Most of the land there has been developed and the way forward seemed to be through redevelopment.
Demolition began soon after settlement.
The site was acquired in November 2005 and the project was finished in August 2006. The total time for the project was ten months. The feasibility report below shows a summary of all the costs associated with the project and the overall profit in the project. The end values were determined by a bank valuation on project completion which was conducted by Nick’s bank.
At the end of the project we were able to organise tenants for Nick and each property was rented out for $360.00 and $340.00 per week.
As we were nearing completion Nick decided that he would like to repeat the process again. Therefore, soon after we were able to find a site in Scarborough, another suburb in Redcliffe. This time the 809sqm site was acquired for $329,250, however it was on a single lot. This means we had to apply for a Development approval and pay extra council contribution charges. The project also took a lot longer to finish. Regardless of the extra costs associated with this project, Nick still made a profit of $110 000.00 on completion.
Currently, Nick and his partner Jill are having time off investing while they focus on a new arrival in the family. They have accumulated a lot of equity as a result of using a developer strategy with their property investing and once Jill is back at work, they will be ready to continue with their winning ways.
