Merriwa is a rural town located in the Upper Hunter region of NSW, rich in agriculture, surrounded by National Parks and an easy drive Newcastle and Sydney. Our Joint Venture Partner purchased a good sized block of land on Bow Street, Merriwa, in  2010 that had potential for a small sub-division. We came on board and contributed the development costs.

Rather than building a new home from scratch, two old weatherboard homes which were marked for demolition were transported to the site. These homes were acquired for free and we only had to finance the removal and transportation. Following council approval, the homes were disconnected from services, cut in half and moved, to be reattached and connected to services again at the new location. Banks do not finance house relocation due to the high risk of things going wrong during transportation. Thankfully, this process ran smoothly!

The existing house and the two transported to the site were all cosmetically renovated. They received their certificate of occupancy, ready for either lease or re-sale and we chose to sell. The three homes were given a new lease of life and had a combined value of $600,000 which is an average value of $200,000 each. 

The total profit from the project was $121,500 and was split equally give Ryve Property Services and our Joint Venture Partner $60,750 profit each. Joint Ventures are a great way to combine resources and skillset to complete a project which may be difficult to take on alone! 

Financial Breakdown:

Expenses:

Property purchase cost: $132,000

Development of 3 properties: $325,000

Marketing and Commission costs: $15,000

Stamp Duty and legal costs: $6,500

Total: $478,500

Income:

Combined sale price of the three properties: $600,000

Profit:

$600,000 – $478,500 = $121,500