THE ORBIC BUILD CASE STUDIES

  • Case Study 1
  • Case Study 2
  • Case Study 3
  • Case Study 4
  • Case Study 5

Case Study 1 – Large property portfolio with high holding costs.

Case Study 1

The PropertiesThe clients own several development sites in Rivervale, Belmont and Kewdale and wanted to engage a builder with both property development and construction experience to help work out the best strategy for their portfolio. The clients were incurring substantial holding costs on their many properties, such as annual land tax and interest but didn’t want to just sell the properties, especially in a down market.

The ChallengeThe client wanted to develop the sites but have neither the experience nor the cash resources to take action themselves.
The clients needed a solution that would be suitable in the current property market in Perth.

The SolutionWe planned to develop the first 3 sites in their portfolio, starting with a large 4,200sqm site in Rivervale that was incurring over $16k per annum in land tax with minimal rental return.
We identified the zoning and set back requirements for the site and created a Master Plan that took into account the best product to take to market , the right yield (19 lots) to ensure sufficient land areas (180sqm) to support the best sized construction that would be accepted by the market for sales (165sqm of internal space).
The client would fund construction of one home and Orbic would fund the subdivisional works to create the 19 lots and fund the construction of 2 homes. The land would not be used as security for any of the Orbic funding and the client would be paid an agreed price for each parcel of land upon settlement.

The OutcomeOrbic developed a plan to progressively develop the clients several land holdings over the next 5 years to substantially reduce their ongoing holding costs, see them paid progressively for the development of their land with minimal cash input and no borrowing requirement from them.

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Case Study 2 – Old house in Willetton with development potential

Case Study 1

The PropertiesThe client owned an old house on a large block in Willetton.
She was frustrated with ongoing maintenance on the home but was hesitant to build due to the timeframe and cost involved.

The ChallengeWe needed to work out exactly what the client wanted to do with the site. She wanted to remain living on the block so the opportunity was for a mixture of owner-occupier and investment purposes.
The project needed to be completed within 12 months to cause minimal disruption and keep the cost down so it would fall within her budget.

The SolutionThe design that suited was to build one large single storey home on the front part of the lot and a smaller second villa at the rear of the site.
The front home would be larger and be personally designed to suit the clients ongoing living needs while the rear unit would be smaller and fitted out for rental purposes.

The OutcomeConstruction of 2 single level villas was completed in 6 months, on budget and well within the timeline.
The client now has a large 4 bed, 2 bath home with plenty of room for her and her extended family as well as a rear 3 bed, 2 bath villa that she can rent out for investment purposes.
We are now in discussion with her to look at future investment opportunities.

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Case Study 3 – Seeking a property portfolio for passive income

Case Study 1

The PropertiesThe client was looking to construct multiple units to rent out in a good location and hold long term in order to build an ongoing passive income.

The ChallengeTo search various city suburbs close to the city to find the right site that could be purchased at the right price.
We had to ensure the land had the right zoning and was ready to proceed immediately with a residential project as the client was keen to start.

The SolutionOrbic found a site in Bayswater, with zoning that allowed for 30 residential apartments to be developed.
We managed to secure the land for the client at a reduced price, then organised the Design of the project, obtained Development Approval, sourced project funding, carried out the construction and secured tenants for the units on completion.

The OutcomeThe client now has an ongoing income stream and is looking for the next development project to build her portfolio.
All 30 of the completed rental units will be retained by the client for at least 5 years to ensure they do not need to register for or pay GST on the development, as they are a passive investor and not involved in the industry as a full time developer.

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Case Study 4 – Migrant to Perth wanting guidance with local property

Case Study 1

The PropertiesThe client recently migrated to Australia from South Africa. She wanted to enter the property market in Perth but had never developed property before and had no understanding of the local real estate market.
We helped the client find a development site in Hamilton Hill zoned for 8 residential units.

The ChallengeThe client being new to Perth had no previous borrowings and therefore no credit history here.
As Orbic has been developing projects in Perth for the past 20 years we have built many strong relationships with local Banks.
We fronted the lending for the client and backed the project so that the Lenders would have comfort in financing the development.

The SolutionWe assisted the client to organise project funding and helped her to obtain pre-sales on 4 of the units prior to completion.
The remaining 4 units would be rented out and retained by the client for investment purposes.

The OutcomeThe client has 4 units rented out and the 4 sales reduced her debt significantly.
She now has a positive credit history and on ongoing income to start her business ventures in Perth.

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Case Study 5 – Triplex in Nollamara: retain old house, build 2 new homes

Case Study 1

The PropertiesThe client owned a large block in Nollamara with an old house located in the centre of the lot.
The zoning showed the land would allow for a triplex development with 2 new townhouses to be constructed on the site (Front and rear) with the existing home to be retained and renovated in the middle.

The ChallengeThe client had purchased the land 2 years prior when land values were higher meaning he was facing a major struggle to make the development work from a financial point of view.

The SolutionThe goal was to push forward with developing the site but needed a builder who would work closely with him on design to ensure construction costs would be kept as low as possible.
Orbic’s ‘turn-key’ fixed price building contract meant no hidden surprises for the client on construction costs for the new townhouses and renovation.

The OutcomeThe client was able to develop the site and receive a reasonable profit on the overall project.

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