Case Study

Kennedy Street – Townhouse Development Project

Scenario:

Steve wanted to focus his $1M on a development opportunity but had no idea how to get there. He understood from the beginning he lacked the insights and experience to make an informed decision to lead to financial growth and turned to EQ Property to guide what strategy to take.

Budget:

$1M

Development Cost:

$1M

Value on Completion:

$3M

01.

The Strategy

Giles considered Steve’s goals before researching property opportunities to help him achieve them. Steve made it clear he wasn’t looking for something short-term and instead was interested in longer-term investment to increase his wealth position. A feasibility study with conversations with knowledgeable real estate agents confirmed Giles should focus on larger blocks of property in the middle ring suburbs of Melbourne. Giles found an investment opportunity within Steve’s price range, saving Steve the daunting task of considering area after area.

02.

The Approach

EQ Property understands the value of data and uses it to find the best locations for its clients. They consider three critical elements to determine where the opportunity lies in property development:

Demand

Do people want to buy there, live there, establish a business there?

Supply

Will restrictions for development increase risk for meeting demand?

Demographics

Who lives in the area, their incomes, how much are they willing to pay?

Kennedy Street met all three elements offering an opportunity aligned with Steve’s budget and objectives.

03.

The Plan

The plan was to find a key location where gentrification was underway, offering strong organic growth potential. Next, they had to find a property that could manufacture further growth by developing the property. In Steve’s case investing his $1M in the 900 square meter block, he could develop four townhouses for a return of at least $500K. Giles also wanted Steve to understand why this property was ideal and using statistical data available could illustrate why this would provide solid organic house price growth before even delving into the development. However, coupled with the opportunity to turn one older home into four brand new homes to appeal to the local demographics, Steve’s investment will manufacture further growth.

04.

The Results

Steve appreciated Giles’s knowledge and how he let Steve lead the way in explaining what he wanted. There was no hard sell, just a desire to help, which met Steve’s needs in a meaningful way. Trust in Giles was easy for Steve, thanks to Giles’ straightforward approach and ability to share his knowledge. His strategic thinking and understanding of the land development process helped Steve decide how to plan his property investment strategy.



With a property investment portfolio of $20M, Giles is no stranger to the perils and rewards of investing in development projects and used his own experience to protect Steve’s interests. This is where Steve found the real value in working with EQ Property. There was no underlying motivation for the recommendations and advice provided to him. Instead, everything was based on his goals, the data and proven methods that helped him gain the most on his investment.



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