How I used a detailed feasibility analysis to validate the purchase price and project viability

I came across this 405 sqm subdivided block in a beautiful pocket of Camp Hill in January 2014. After making an offer of $441,000, I experienced buyer’s remorse and questioned whether I had overpaid, despite my due diligence and feasibility analysis supporting the project. At the time, I never imagined paying over $400,000 for land in Camp Hill.

Fortunately, I trusted my analysis and proceeded with the purchase, which proved to be the right decision. Fast forward to 2026, and a similar block is now worth over $1,200,000.

My strategy to manufacture equity is simple: build a quality home and hold it long term. New or near-new houses consistently attract stronger demand, allowing both buyers and tenants to pay a premium compared to older homes in the same area. Selling would mean giving up a high-performing asset that can continue to grow in value and generate rental income over time.

A successful build requires delivering the right product for the block and location, without overcapitalising or undercapitalising. There is no such thing as a perfect block. For example, 56 Tranters Avenue had a 2.75 m fall from front to rear. However, once the new home was completed, it became a beautiful property, and the slope was no longer a concern. In effect, the build eliminated the block’s shortcomings.

As an experienced project manager who has built 11 houses, I acknowledge that every project comes with lessons. The key is to learn and improve. In this case, I would redesign the media room to include a window and enhance the electrical plan by adding ceiling fans throughout and pendant lighting over the kitchen island.

Aside from these refinements, the project was a success. The completed home was valued at $1,035,000 in November 2016, allowing me to manufacture $168,204 (19%) in equity. I then refinanced the property and accessed $134,000 in equity to fund my next project.

The build also improved rental yield by 0.9%, achieving 5.5% compared to 4.6% if I had purchased a similar new home at market value. Additionally, I saved $28,391 in purchase costs.

Ultimately, the true reward of this strategy is the equity manufactured, providing the ability to continue investing, scale a portfolio, and move closer to financial freedom.