Now that we have finished a recent 3 lot subdivision we wanted to give you a direct look at what the numbers ended up in this development. This is a no nonsense look behind the curtain at the costs associated and our return on investment that hopefully you will find useful. This development was part funded by lending and part funded by cash input. For a full recap of what we did in this development view our project page here.

Land purchase Price – $530,000
Renovation Lot 1 – $196,637.69
Renovation lot 2 – $35,230.12
New build on Lot 3 – $382,847.76
Land Development (subdivision cost) – 151,934.84

Lending interest/fees total – $70,636

Total expenditure – $1,367,286.40

Overall sale price or new registered value of individual lots:
Lot 1 – $595,000
Lot 2 – $380,000
Lot 3 – $770,000

Total Equity – $1,745,000

Profit:
GST inclusive – $377,713.60
GST exclusive – $328,446.61
ROI before tax – 24%

Its important to back cost every development with your initial projections so that you continue to build up your knowledge and evidence bank to make better decisions in the future. With every development you will learn something new that perhaps wasn’t factored in , in the beginning. With changing legislation and local council regulations you need to keep evolving as the industry does to avoid getting caught out. Never a dull moment for a property developer. That’s the game we are in!