About the Business

BOLD - YES, but you do the numbers.
Take the time to do your own numbers, but Affordable Housing is in HUGE demand - and getter bigger in demand.
Please call me to discuss the below Business Plan.
Below is only a example of a possible development plan of a 6 acre Cabin park.
All parties must do their own due diligence and planning if moving forward.
$3.5 million upfront to get in. $4 million is on Vendors terms @ 8% for a 6 year term. ( 320,000. P/A )
No interest on the 1st year. No Titles exchanged until full payout. No Stamp Duty until pay out.
Either source 2nd hand cabins in Australia, or FLAT PACK 2 bedroom from China. Approx $30,000 each cabin.
Cabins from China are approx $12,000, but transport and fitout to Australian standard are the extra costs ? Do your own research.
Strategy is to develope and Sell 50% of Cabins, and Rent 50% of cabins to long term tenants. Both produce a yearly income stream.
Sell : 20 existing cabins sold with a 25 year lease @ $150,000. ( 3 million back straight away )
Build 15 New cabins @ $30,000 each = $ 450,000 to develope.
Sell the 15 New cabins @ $150,000 = $ 2.25 million. =1.8 million profit. + 3 million above = $4.8 million
(28 +35) 63 cabins are now leased and pay a service fee of $6000 P/A = $378,000 P/A
Note: there are currently 28 leased cabins on the park. ( + 35 new lease sold )
Develope another 35 New cabins @ $30,000 each = $1,050,000 developement costs.
These 35 kept as permanent rentals @ $350 a week. $12,250 per week. $637,000 P/A.
Income is $378,000 service fees, and $657,000 rental income plus any existing sales from the park.
The $4.8 million from selling the cabins may cover the Vendors terms amount and pay it out.
Its possible $3.5 million + stamp duty could return 1 million P/A - after developement
Above is only an example.
But the lack of affordable housing and expensive retirement homes is going nowhere.
Let me know if you want more information for you own due diligence and planning needs. Happy to chat.
Thank you. Michael Keltie. 0400 645 133