We have bought two properties to nail our retirement income and this is one of them. It’s a development site that I bought through one of our super ninja buyers agents. We’ve owned it for two years.
We paid $825,000 for it and I’ve sort of been playing around with what’s possible with this site.
The zoning of this street recently changed so that you can build two story townhouses.
Most people are building 5-6 with 4 bedroom townhouses on these blocks. I really didn’t want to do that because for one, we know that families are getting smaller.
Four bedders are probably not the best thing to build. It doesn’t really meet the need just building it because that’s going to max your return. Doesn’t seem very smart.
And I know that there is a desperate need for affordable accommodation.
I just didn’t know how to make it work.
Anyhow, recently I met a man who is the King of affordable accommodation.
As a result of his expertise in this area, I have been able to figure out that instead of building a 6-4 bedders on this site, I can build around about 25 micro apartments.
Now in this council area, there’s a desperate need for accommodation for low income people.
You might think that it’s a recipe for disaster. There’s an incredible need for affordable accommodation.
And the growing demographic that’s needing it are women in their fifties who come out of a divorce. Usually come out and was off who needs somewhere to live and can’t afford to pay the ridiculous rents for 1 or 2 bedder.
Basically, I’ve been able to hatch my dream plan. And so in on this site we are able to produce beautiful accommodation, like a modern day studio.
So that we’re able to offer affordable accommodation to people who can pay a price they can afford and have a life that has some dignity.
It’s awesome and you know what the incredibly awesome thing about it is that it’s amazingly cash flow positive. By applying that strategy to this block, it will increase the cash flow by around a hundred thousand.
It is incredibly cash flow positive.
I am very excited about it! We are getting stuck right into the preparation for doing the development now that I have come across the plan that can really work for us.
As you can see, it is a monster site which is great and I’ve got something exciting coming up.
I have actually asked Mr. Ian Ugarte (who is the guy that I was talking about) to actually come on and do a webinar to explain the ins and outs of affordable accommodation.
So you don’t have to own a massive development site, you can do this in an existing house.
You can do it in every state in Australia. There are fantastic government incentives.
I’ve asked Ian to come in on Thursday night to do a webinar and we will be sharing with you the incredible opportunity that is affordable accommodation and multi occupancy properties. I am looking forward to seeing you there and thanks for watching.