Investors are needed for development of 20 residential units located less than 8 kms from Sydney CBD. The location is being re-zoned by government and by July 2010 will permit high density developments as a special development area approved by government. Train into Sydney center travel time is 15 mins. Train station is 5 mins walk.
The Australian property market has held very strong through the financial crises. The Australian government and industry groups continue to state that the property market is significantly under supplied. The shortage of new property is creating higher property prices and higher rents. To increase supply of new property developments the Government has reduced stamp duty (government fee when purchasing property) to $0 for new purchases less than $600,000.
This development area is located in an area that is currently being re-zoned for high density unit development. It is noted by Government as a special planning area. The site for the development currently has 12 units which have a market value of $500,000 each, total value 12 x $500,000 = $6,000,000. Plans are underway to create an additional 3 levels adding 20 units to the building. The costs of construction is approximately $250,000 per unit or 20 x $250,000 = $5,000,000. The existing owner will contribute $1,500,000 towards construction, $2,000,000 has been approved by a major bank, and $1,500,000 is still required.
The value of the 20 units once constructed will be more than $550,000 each or 20 x $550,000 = $11,000,000. To ensure that investor funds are well protected as a condition 50% of the 20 units must be sold prior to the start of construction.
Investors can contact us on Merar.