While many developers overlooked the land, he leveraged his engineering knowledge and professional connections to assess and design a build that fully complied with council requirements.
By carefully planning the site and addressing the flood constraints, the investor transformed what others saw as a problematic section into a high-quality, low-risk rental investment.
Land Cost:
$180,000
Build Cost:
$345,000
Total Investment:
$525,000
Property Type:
New build investment home
Rental Income:
$650/week
$33,800/year
6.4% yield
Estimated Market Value:
$650,000
Initial Yield (Year 1):
~6.4% per year
Projected Rent in Year 10:
$883/week (~$45,567/year)
Cumulative Rental Income over 10 years:
~$394,127
Projected Property Value in 10 years:
~$1.11M
Immediate Equity at Purchase:
$125,000
Equity Growth Over 10 Years:
$1,112,000 – $525,000 = $587,000
