Why Consider Investing In Multi-Unit Development?
Why consider investing in multi-unit development
First of all, lets define Multi-Unit Development.
A Multi-Unit Development is a Property Investment project where more than one dwelling is built on a single lot. Property Development is a type of Property Investment. Property Investment involves purchasing a premises, with the aim of a financial return. This may be through renting the property, or reselling at a profit. Property Development is more complex. Development involves adding value to a property by maximising the potential of the land area. Usually value is added by transforming land into subdivided lots, and building townhouses, dual occupancy, duplex, triplex or multiple units.
Multi-unit developments in Melbourne are successful and sought after due to housing demand. Well researched, strategically planned projects are highly profitable investments. Developers can expect average returns of approximately 20% net profit. That is, the profit after purchase, subdivision and construction, including any associated fees, interest and legal costs. This level of return often outweighs many other investment options.
The best chance of optimising your return comes with hiring the right team. A specialist design and construct team will have dealt with your local council before, and will have a strong network to outwork your project. A great team will have talented designers, engineers, management staff and be experienced in dealing with council. They’ll also have an extended network of great conveyancers, legal experts, and real estate agents. A turn-key service like delcon’s gives you immediate access to everyone in the network, and saves you the time vetting professionals in each of those areas.
Apart from significant income returns, what makes property investment (and multi-unit development) a good option?
More reasons to consider investing in property
Property is easy to understand
Unlike some other investment options, the property market is a relatively simple concept to understand. We all use property every day and the differences between townhouses, dual occupancy, duplex, triplex or multiple units aren’t hugely complex.
Property Development is less volatile than other investments
In comparison to shares and other investments, the property market moves relatively slowly. In the stock market you may see significant peaks and troughs in a matter of hours. The same differences in the property market occur over months or years.
Tax Incentives
Development projects where the properties are not immediately sold on are often maintained as a long term rental investment. A held investment property can be very useful tool as a way to offset tax.
Your Mortgage Pays Itself
With a tenanted property development investment, the majority (or all, plus more) of your outgoing costs can be taken care of by the rent you receive from your tenants resulting in a positively geared investment.
Is Multi-Unit Property Development for You?
If you’re considering Multi-Unit Development with no experience in Property Investment, you may think you have to crawl before you can walk, and start small. This isn’t always necessarily the case.
delcon strive to make multi-unit development accessible to new and time poor investors. Our turn-key service provides a way forward for those who need to build their skills and knowledge, or just want the process managed for them.
All you need to do is decide what your return on investment (ROI) goal is and give the team at delcon a call.
Call delcon today on 1800 335 266 to discuss starting your multi-unit development project.