Selecting a property with development potential
Knowing how to secure a property with superior development potential can be difficult, especially if you are just starting out.
Top tips to ensure successful developing include:
- Look for a block where the cost is almost the same as the block value, so that very little of your purchase price is being wasted on the existing house.
- Look closely at the shape, as well as the size of the block. Irregular shaped blocks can cause extra design costs and wasted space.
- Look for blocks with as little slope as possible. Blocks with greater slope need more retaining and earth works which can add to your costs.
- As well as confirming the zoning on the block to ensure the development is possible, confirming the location of the sewer line is crucial. While some blocks will be advertised as a 3-unit site, the location of the sewer line can actually restrict it to a 2-unit site as homes can’t be built on top of sewer lines.
- With battle-axe blocks, keep in mind that side access is required to be a certain width before any subdivision is approved.
- In small developments it is very hard to develop and sell immediately at a profit since the gain is mostly eaten up in stamp duty, purchase costs, resale costs and taxes. You’re far better off not selling and rather building a portfolio of properties that can grow in value and increase your wealth.
- Before you start looking for your development property, talk to your finance broker to see what type of development you can afford.
Don’t forget, if you’re not an experienced developer or if you have a full time day job, to get the best results for your money and effort, get an expert on board who has the time and skill to handle it for you.
Property Wizards believes everyone has the right to the knowledge to help you accumulate wealth, no matter your background, education or income.
We can help you unlock the potential of the real estate market for your family through savvy property selection, negotiation on price and conditions, development expertise and the magic of com
Regardless of market conditions, our research, local knowledge, and access to silent sales means we find the ‘hidden gems’ that can outperform the market in capital growth and rental returns for long term wealth creation. Importantly, we’re able to provide property investors and homebuyers with the same level of representation that property sellers have benefited from for years.
Your property portfolio is your path to financial freedom and the lifestyle you’ve been longing for.
Property Wizards takes away the stress of buying a property and saves you money at the same time. We can show you how, or you can sit back and let us do all the hard work for you. It really depends on the amount of time you’d like to put in.
If you have an interest in building your wealth through property, then call us on (08) 9381-7450, or request a FREE Starter Pack.
If you want to learn more about property investment strategies, or you’d like to clarify your investment strategy and goals, why not complete our Getting Started form to get the ball rolling.
And, if you’re already contemplating how to tackle the property market in Perth, why not download our free Get Ready to Invest in Property eBook here.
We think you’ll find it invaluable.