Property Development Case Study - 37 Mount Street
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- čas přidán 15. 08. 2024
- In this case study I break down the numbers including the costs and timing in this dual occupancy property development case study.
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01:02 Project Breakdown
02:55 Early Development Costs
03:14 Middle Development Costs
03:40 Construction Costs
04:12 Marketing Costs
04:23 Bank Interest Costs
04:39 Completion Costs
#property #development #casestudy
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As a final year student studying at Monash, I found your video to be highly informative. Wish we had lecturers with the same amount of practical knowledge as you do.
Really appreciate the videos made by Peter Kelly .
I really appreciate the kind words Binoy, I'm glad you are enjoying the content!
@@peterkellyofficial this is incredible work, thanks for sharing. There are massive opportunities in the NSW, Southerland Shire area for any Builder/Developers watching this with returns that would easily double this case study.
🚀🚀🚀
Welcome to the University of Peter Kelly. Thanks Peter for your amazing content
It’s my pleasure! Enjoy 🙏
Excellent video! Thanks for sharing; it’s greatly appreciated.
My pleasure!!!
🙏
I have done two separate dual occupancy projects in Brisbane and although both of them were profitable, they were clearly no where as good as this one. Either in terms of margin or on style, look feel. Well done Peter Kelly.
Thanks, Sujay! Hopefully, you took some great lessons from your first couple of dual occupancy developments that you can now carry into your next one. Continual improvement and refinement of what you do is the name of the game!!!
very good info. thank you sir peter
My pleasure!
Peter, you mentioned that each townhouse was 30 squares each, the construction cost appears low. I have recently got quotes for two 31squares townhouses side by side at approx 1.2M. Other quotes are in the similar price range.
Hi Rizwan, we operate on the wholesale end of the market. We have long lasting relationships with our builder network and have been providing them continuity of work for a long time. Those are the numbers my man :)
P.s. If your project is in or around Melbourne and if that’s the level you are at and your project is relative to the case study build we can help - we’ll be able to get it done faster and cheaper including our fee.
We could be a good option if you’re looking for some help :)
@@peterkellyofficial for next project, I will definitely speak to you. Until that time, I will get knowledge from your videos.
Sounds like a plan Rizwan 👍
Hi would you show the formula that you use to calculate the ROE.
THANKS
The formula is:
Return % capital investment X 100
For example ...
400k (return) X 600k (investment) = 0.66 X 100 = 66%
UNIVERSITY KELLY.
Whoop whoop!!! Watch this space 😉
Hi Peter, thanks for the very informative video here. According to your results table, the ROE is 21.64%...how did you arrive at this figure? or was it a typo?
Hi Crypto - Hope all is well!
This was the 'Return on Equity' result.
Calculated by dividing the return/profit on the equity/cash contribution to the project, which from memory would have been circa 30%.
Hope this helps!
hi at 3:53, there is an item: "Building permit 4800$". what is this item for?
Hey! You need a building permit to undertake residential construction here in Victoria :)
@@peterkellyofficial hi thank you so much for your quick reply! yes i know a BP is required. is the 4800$ for BP application fee or for Littlefish to manage the application?
Gotcha - it’s for the building surveyor to manage your application and includes the application fee 🤙
Thank you so much! By the way I am a registered draftsman in Melbourne. You did some exciting projects and your channel is awesome!
Mate legend - I really appreciate the kind words, and glad you’re getting some value 🙏
Hi Peter, how much cash / equity did this client have vs how much money was borrowed? Thanks for the great video. Super helpful
Hi Liam,
I appreciate the kind feedback, I’m glad the insights have been helpful.
With regards to you question, I can’t actually remember off the top of my head but I imagine it would have been approx. 30% equity.
Hopefully that helps :)
Interesting. And would that be of the Total Cost? Therefore to conduct this Prop Dev they would of needed around $750k in cash or equity right from the start when they purchased the land?
I know in this particular case they had owned the land for a while before approaching LF but in theory if they had gone through the entire process with LF, would they have needed that amount from the very start? Thanks in advance
I’ve really just made an assumption Liam, I genuinely can’t remember - we are project managers so it’s not really part of our scope the finance.
We can (and do) connect our clients with development finance options but the details and individual structures are obviously private.
That said, all circumstances are going to be different, there are a lot of variables but potentially you wouldn’t need the full amount of equity from the start, you’ll just need access to it when you need to draw it down - which will be relative to your own personal circumstances and project!
Where can I find case studies 1-36?
37 is the street number Leila, that said we have more case studies in the pipeline so keep your eyes peeled here on the channel 👍
@@peterkellyofficial thanks for the quick response ! I’m looking forward to seeing the next ones. Favourite video so far !
@@leilakaawi4113 It's my pleasure 🙏
How much did the property purchase cost ?
Not sure off the top of my head Brad but it’s in the video.
I will probably contact you guys soon.
Awesome Julex! We’re looking forward to hearing from you :)
Quite good video, awesome! Would you like to be CZcams friends? :]
Why not 😉