Are Melbourne Townhouses A Good Investment In 2022?
Melbourne Townhouse Investment
There is no categorically “good” and “bad” time to invest in Melbourne townhouses.
Property investing is a long-term commitment with promising impressive long-term gains. So it’s best to look at investing in multi-unit developments as a steady process rather than a one-time event, and the sooner you get started, the more your future self will be better off.
Ultimately, a well-researched and strategically planned project will be more likely to be highly profitable. To set you up for success as a first-time investor, we have included information below that will help you achieve a high ROI on your Melbourne multi-unit development.
What is a multi-unit development?
A multi-unit development is a property development project where more than one dwelling is built on a single lot. That is more than one house, unit, or townhouse. Multi-unit developments are highly subject to local council authorities and Residential Building Codes, making this type of property investment a potentially complex endeavor.
The right multi-unit development specialist in Melbourne will offer a turn-key service, meaning they will manage the entire process for you, optimising return on investment. This is the best option for multi-unit development investors who have limited time or are not sure where to begin when it comes to designing and building a Melbourne townhouse for profit.
Feasibility assessment
Before you spend your hard-earned cash on a property development project, you’ll want to know that it’s feasible. That is, you’ll make a healthy profit at the end of the day. The risk, time, and effort have to be worth it. For most people, a successful property investment gets a return of at least 15%. This is subjective and the right number for you may be higher or lower.
Whatever your desired return, you’ll have to test your multi-unit development profit potential early in the planning process. Do your research before you commit to the project.
Experience plays a big part in being able to accurately determine the costs and likely return on investment (ROI). A feasibility assessment takes into account the land costs, planning expenses, bank payments, fees, and construction costs. The costs are held up against the current property market prices (likely sale costs) to find out your potential return on investment (ROI).
Choosing the right block of land
Choosing the right block of land to develop is the single most important decision you’ll make in the property development process. The right block is the sum of many important factors, from size to orientation and often the problems can appear in unlikely places, like the surroundings or slope of the block.
The block of land you choose for your multi-unit development will directly determine your site and establishment costs. A well-chosen block is easy to work with, therefore keeping costs to a minimum. This may sound obvious, but the range of difference in these costs can be in the thousands, making a significant impact to your eventual return. The level of importance here is paramount, as a poorly chosen block can be the difference and even make the development not worth doing.
Finding the right block of land for a development can be time-consuming, but it will be well worth the effort when the right opportunity comes up.
Choosing the right multi unit development builder
Choosing the right multi-unit development builder for your project is essential for making the most out of your property development. To ensure you make the right decision to maximise your profit, you’re going to have to do your research.
What you want to look for in a Melbourne townhouse builder:
- Relevant experience
- Registered and insured
- Transparency
- Feasibility
- Excellent Referrals
- Turn-key service
Once you have found the right dual occupancy Melbourne builder most of your hard work is done. You can sit back and relax as your Melbourne triplex builder manages the entire project from start to finish.
Ready to get started but not sure where to begin?
If you’re ready to join the growing number of Australian investors who are investing in Melbourne townhouses, we recommend starting with researching the right location. We listed the 14 best Melbourne suburbs for townhouse development in 2022 in a recent article, including median sale and rent prices for each suburb.
We recommend starting with this article to get an idea of location options for your new multi-unit development, then contact the development specialists at delcon design and construct on: 1800 335266 or info@delcon.net.au.
Melbourne Townhouse Investment