Project Name: 43F
Address: 43 1st Avenue, Fontainebleau
Project Date: June 2019
This is one of our earlier projects where the owners of this property saw one of our advertising boards and as they had the idea of emigrating within 6-9 months and wanted to start the process of selling their home.
We came up with a solution whereby we would purchase the property from them before they emigrated but would use the 6 months waiting period to re-zone and sub-divide the property.
Once this was to be completed, we aimed to sell-off both lots to new buyers.
The problems we encountered here was that we initially overpaid for the property and we soon realized that we weren’t going to make a profit if we had to take on the costs of the sub-division. It was then that we decided to auction the property as one portion.
This allowed us to sell the property on to a new buyer although we still made a small loss on the overall project.
This deal taught us not to overpay for any property and to also analyze the market better with more detailed and realistic feasibility studies. These lessons were hard-learned but better served us as we moved onto other projects that were profitable and can be credited to the lessons we learned here.