This property is just outside the urban foot print of Logan Reserve, just 2 lots away from Emerging Community. So it might be just a matter of a few years to have this rezoned.
There is a huge pipe across the road delivering storm water from neighbours on the opposite side, causing some running water on 1/4 of this land; this is not flooding as this is not connected to any creek or river, it is just caused by a temporally pipe that should not have any function as soon as the Logan Reserve road got improved with proper gutters etc.
The flooding map see a low risk of flooding on 3/4 of this land that sits quite high, and the owners for 30 years living there have never ever been affected by flooding, hence the driveway and only access to the property is right through what is considered as flooding, and it never happened.
For future development, when this land will be allowed for subdivision, let's consider 60% only to be subdivided, flood free, so roughly 12,000m2 out of 20,500m2 total land.
Now lets do a small calculation for a future business when re-zoning will happen and this lot allowed for subdivision:
12,000 less 2,000m2 road access etc = 10,000m2
10,000 divided by 450m2 lots average = 22 lots of 450m2 average.
At present market, a 450m2 would sell at $470,000 each, so a total turnover of $470,000 x 22 = 10,340,000 including GST.
Construction cost per lot = $150,000 maximum per lot x 22 = $3,300,000
Sales commissions on selling 22 lots = $220,000 approx (including GST)
Interests of 5% on $2,400,000 (land cost plus tax etc) on 5 years = $600,000
Interests on constructions cost when time will come, for 1 year at 10% = $330,000
Profit Realisation:
10,340,000 - 3,300,000 - $220,000 - $2,400,000 (land plus tax) - $600,000 - $330,000
= $3,490,000
This represents 30% of profit on total turnover, this is a very good business model in this industry. The only question is "When will Logan Council include this last remaining large blocks in their new plan as emerging community?"
For more information please do not hesitate to contact Reg on 0412 976 122 or Merinda Kim on 0437 643 181.
