How does creating instant equity of $240,000 in less than 12 months sound? Well it’s possible and that’s exactly what our client achieved with his recent duplex build.
Our Client’s Goal
In order to be a successful investor, you need to have a goal that you’re working towards and a strategy in place to achieve that goal. Jeff’s (not his real name) goal was to create instant equity in the short-term to get further ahead with his finances and set his family and kids up for their future. We knew that a duplex project would allow him to achieve this.
Being a busy professional (doctor), Jeff was very time poor and lacked the knowledge when it came to doing a development, which is why he reached out to Aus Property Professionals. Our team does this on a daily basis with outstanding results, so we were well equipped to help Jeff on this journey and the results speak for themselves.
We educated Jeff on what is involved when doing a duplex project, including how the loan structure works so he had a better understanding of the entire process. Following our regular meetings with the site supervisor, we were able to provide Jeff with regular updates and photos of the progress on his build. From land acquisition, to tendering out the build contract, to discussing what inclusions were important for the build, Jeff was kept up to date every step of the way while we maintained regular contact with the builder to ensure the project was running smoothly.
The Location
Understanding Jeff & Sue’s goal, their financial position and where they wanted to go moving forward with their property investing journey, we narrowed down the location to the Maitland region of NSW. We identified some great opportunities there which would allow them to create massive instant equity, as well as long-term growth and positive cash flow from day 1 and this proved very successful.
Negotiations/Acquisition
The most important thing was to locate a block of land that was suitable for a duplex build. After speaking to council, the town planner, a number of different builders and some architects to draw up designs, we shortlisted a fantastic corner block.
As always, we negotiated a great deal on the vacant block. For the build itself, we tendered this out to a number of different builders we have used in the past (as we know their quality of work). Making a few changes here and there to suit the demographics of the area and also to have some higher inclusions (stone bench tops, down lights, air conditioning etc), we sealed the deal with a builder. Given our ongoing relationship with various builders, we were able to negotiate a few of the inclusions at no extra cost to our client.
The DA and build went smoothly as we managed the whole process for Jeff & Sue. In less than 12 months from start to finish, they achieved an Instant Equity Gain of $240,000 and Positive Cash Flow from day 1 with both units being leased at $420pw each.