We all understand that investing in property can be lucrative, but like any investments that yield high returns, there are risks.
Earning rental income, leveraging capital growth and maximising tax offsets are all desirable benefits, but aren’t guaranteed and depend upon the decisions you make right from the start.
Whatever your objectives, it’s important to understand what equates to value. Like many things in life, value is more than just the cheapest price. When building a new development, there is generally more than one way to approach the design configuration. It’s important to evaluate every block individually and investigate recommendations that are not only viable, but will also maximise your returns, based on your investment objectives.
The team at Summit Projects are the most experienced in WA when it comes to developing. Over 35 years, they have developed all kinds of blocks and approach every development with a strong emphasis on customising solutions that ensure value and maximise returns.
Here we talk to General Manager of Summit Projects, Peter MacBean, who shares his top ten tips to maximise your block’s potential.
1. Get it right the first time. This relates to the initial design and recommendations, as well as the initial feasibility analysis. Choose a development partner with experience that will ensure they get it right the first time.
2. Find design solutions that work. Designing strata developments is a specialised skill and differs greatly to designing green title homes. Consideration must be given to the number of dwellings to maximise potential returns, access, council regulations and much more. Getting the design right from the start saves time and money in the long-term.
3. Accurate, up front and fixed pricing. Many builders will provide you with quotes that include ‘provisional sums’. While it is often difficult up front to accurately quote on all components, it is paramount that your initial quote matches your final invoice as closely as possible. Before you commit to a builder, ask about their quoting process.
4. Transparent specifications. What fittings and fixtures are included and what will be an added cost down the track? It’s vital that all specifications are good quality, are durable and will appeal to a broad rental market. What you see, should really be what you get. Choose a development partner that can leverage their buying power to negotiate the best rates for all inclusions.
5. End to end solutions. Development encompasses a range of steps from initial scoping and feasibility, through to securing finance, through to construction. Ideally you want to work with the same development team from start to finish.
6. Quality build. It goes without saying that your development must be high quality, to minimise ongoing maintenance costs and also ensure re-sale demand is high. Work with a development partner that can shed light on the fine balance between achieving quality and avoiding over-capitalisation.
7. Time is money. From the moment you purchase a block or enlist the services of a builder, your development will start costing you money. It’s imperative your development partner moves quickly, but also explains where the likely delays will occur, for example shire approvals. When building, the experience of a finely tuned team is essential. Construction delays will cost you thousands in potential revenue.
8. Finely tuned processes. Working with an organised team will not only save you time and money, but will also minimise stress when developing. Don’t be afraid to question processes.
9. Customer service and communication. You need to work with an experienced team that values communication when developing. There are many unknowns and you need to rely on a dedicated customer service team that will keep you informed every step of the way. A customer portal that you can access at any time is a great way to stay informed during your construction.
10. Trustworthy maintenance and warranty guarantees. You’ll be very focused on getting to site to commence construction, but what happens after you get the keys? Before you commit to a development partner, question their approach to warranties and maintenance. Will the builder still be around to service any maintenance issues down the track?
For more information, contact the experienced Summit Projects team.
Disclaimer: The information within this article is general information only and it does not constitute advice or recommendation. It does not take into account your financial situation, investment objectives or personal circumstances. Before making a decision about developing your property, you should seek independent financial, legal and taxation advice.