Delicious Developments

1. Delicious Developments www.renos.com.au | info@renos.com.au | 1300 550 656

2. Introduction • Case Study 1: Developing the Undevelopable • Case Study 2: BTR • Case Study 3: Developing the Renovator

3. Case Study 1: Developing the Undevelopable Number 20 Number 18

4. Case Study 1: Developing the Undevelopable

5. Case Study 1: Developing the Undevelopable Look at my new land sizes:

6. Case Study 1: Developing the Undevelopable Site Plan Street Elevation

7. Case Study 1: Developing the Undevelopable You just heard about scrapping From this… …to this

8. Case Study 1: Developing the Undevelopable Equals this!

9. Case Study 1: Developing the Undevelopable

10. Case Study 1: Developing the Undevelopable

11. Case Study 1: Developing the Undevelopable • Summary • Non-development sites can often be development sites if you think outside the square • The best place to buy is often in your own backyard…like your neighbour! • Employ the experts • Have at least a basic understanding of the rules • Demonstrate what you want by showing similar projects • If you believe something is possible but you are told ‘no’ ask again another way or ask someone else • Scrapping is great! • Opportunities exist everywhere!

12. Case Study 2: BTR

13. Case Study 2: BTR This property made me over $1 million…during the ‘worst financial crisis since World War 2’ Let’s take a look at how I did it.

14. Case Study 2: BTR I’ve done my research

15. Case Study 2: BTR There were two reasons why I was keen to buy this despite the other client’s poor feasibility • I already knew I had made 98k! • I used a different feasibility

16. Case Study 2: BTR Build to Sell doesn’t work for me…it just creates a tax problem! Capital gains tax PLUS I have an existing land tax issue

17. Case Study 2: BTR So I want to… B.T.R. …and If building to HOLD then design to HOLD!

18. Case Study 2: BTR And thanks to a comment I heard from Michael Matusik… I decided to build 10 x 1 bedders to rent!

19. Case Study 2: BTR The Construction – flats removed 25th March 2008

20. Case Study 2: BTR The Construction – basement dug 17th June 2008

21. Case Study 2: BTR The Construction – heading up 2nd September 2008

22. Case Study 2: BTR Full height scaffold – roof time! 9th December 2008

23. Case Study 2: BTR Walls battened and ‘rough-in’ complete 28th January 2009

24. Case Study 2: BTR Rendering and painting 11th February 2009

25. Case Study 2: BTR The finished product – July 2009

26. Case Study 2: BTR The finished product – July 2009

27. Case Study 2: BTR The finished product – July 2009

28. Case Study 2: BTR So what went wrong? • I designed for fully furnished but no one wanted furniture! • As a result…washing machine…fridge..queen bed • Bloody energy saving light bulbs • Storage area vs water meters • Broadband cable • Ponding • White courtyard tiles

29. Case Study 2: BTR

30. Case Study 2: BTR

31. Case Study 3: Developing the Renovator

32. Case Study 3: Developing the Renovator Paid $514k as a renovator…worth $580k as a development site!

33. Case Study 3: Developing the Renovator • Develop • “The price reflects the need for lots of work”

34. Case Study 3: Developing the Renovator • 592m2 corner site • Zoned for units/townhouse/SUDs • House must be kept • Can build to 2 storeys

35. Case Study 3: Developing the Renovator The site

36. Case Study 3: Developing the Renovator The site

37. Case Study 3: Developing the Renovator

38. Case Study 3: Developing the Renovator

39. Case Study 3: Developing the Renovator The numbers: TOTAL COSTS $1.095m End value renovated house $575k New house $775k TOTAL END VALUE $1.35m Equity gain $255k Return on development costs 23.3% That’s the power of a quick reno and a small development.

40. Case Study 3: Developing the Renovator

41. Summary • Employ the experts • BTR or BTS • RDC! • Look for development sites at non-development prices for long term gains and options • The 20% margin rule is misleading