Perth residents – Are you thinking about growing your wealth through a townhouse development? Triplex development? Duplex development? There are plenty of options out there that can set you on your way to a potentially lucrative investment opportunity.
As a beginner, getting started is often the hardest part. The process can seem complicated and overwhelming, which can curb your enthusiasm quickly. However, by familiarising yourself with the process, you can better understand what to expect.
Here are some property investment tips for property development WA-wide.
Step 1. Why are you doing it?
Property development should be part of a well-considered investment plan, not a hasty decision born out of a desire to make some quick cash (however tempting). While it's certainly possible to develop with the aim of selling quickly, you may find it would be more beneficial to hold onto your properties to grow capital and rental returns.
Put simply, you need to be sure you’re developing for the right reasons so you can execute a well-devised strategy.
Step 2. Reading, studying, learning
While it may seem obvious, learning about all the ins and outs of property development is a crucial stage often skipped over by eager new developers early on. Reading and studying property development will give you a solid theory grounding, while talking to a successful property developer will expand your knowledge greatly.
This will set you up to meet challenges head on, rather than having to fill in the gaps as you go, which can be stressful and costly.
Step 3. Looking for land
If you don’t already own suitable land, it’s time to start looking for a block of land with property development (Perth) potential.
You should consider:
Townhouse development? Triplex development? Duplex designs for narrow blocks? This will help you work out whether the project is financially worthwhile.
Step 5. Number crunching
Time to work out if the type of development you want to do is financially viable.
You should consider:
If the project is viable, you can consider making an offer to purchase the land you are looking at.
Step 6. Purchase the land
Be sure not to overpay. Assess past sales of similar blocks in the area to establish what you (or an expert) believes is a fair market value. Use this ‘standard’ to acquire the land at a price that allows you to maximise your potential profit margin.
Step 7. Find a development expert
Time to find the right builders with the skill, knowledge and resources to bring your property development in WA to life. Think carefully, as not all duplex builders (Perth) or triplex builders (Perth) are the same.
General Manager of Summit Projects, Chris Johnston, believes this decision is crucial to the profitability of your project.
“Experience is everything,” he said. “If you’re just starting out in property development, you’ll need a builder who can give you confidence that your profits will be maximised.
“Summit Projects has one of the most experienced property development teams in Perth. We offer development solutions for all blocks, from a townhouse development, to triplex development, duplex designs for narrow blocks and everything in-between.
“Just leave it to us - we take care of it for you, from the initial scoping and feasibility right through to finance, council approvals, building and maintenance. It’s why we’re trusted as a preferred builder for first time developers, and why over 50% of our business comes from repeat or referral business.”
To organise your obligation free Perth property development consultation, call us at Summit Projects today.
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.