This project in Rowville was a small corner allotment sub-division. The original home is a three-bedroom brick veneer home with generous entertaining areas. We purchased this with an aim of subdividing the land and building a new home on part of the backyard. The house was purchased for $540,000 and had a lot of interest, being that it was a corner block.
The new build is a three-bedroom, 3.5-bathroom townhouse. We spent a total of $600,000 on the site across both the new build and the existing house, which included the plans, permits, subdivision costs, all construction & site costs, landscaping, drainage and legal.
Making the total project cost $1,140,000 which took just over 12 months to be completed.
The figures of the property are summarised below:
• Original purchase price: $540,000
• Renovations and new build: $600,000
• Total project cost: $1,140,000
• Valuation of two properties
• Original Home: $770,000
• New Home : $890,000
• Combined Total Value : $1,660,000
• Equity Profit: $520,000
The location of these two homes is very close to parks, playgrounds, public transport, schools & shops. These two properties have the benefit of being low maintenance as well as still having plenty of outdoor recreation areas within proximity. This means that the value of both properties still increases, regardless of the smaller block sizes providing a greater overall return on investment.
Subdividing can be a great step towards wealth generation and attaining equity profit, as well as being a great way to expand any property portfolio.