The Melbourne Townhouse Builder For Property Developers: Q & A
Property Development Q & A
We’re specialist Melbourne townhouse builders, and dual occupancy developments are a big part of that. Because we’re Melbourne dual occupancy building experts, we get a lot of property development questions. We’ve collated a few of the most common ones here for you.
Here’s a 101 Guide to set up your future in 2022 with property development in Melbourne.
1. Is property development a good investment in 2022?
Based on the Domain House Report for June quarter, 2021, unit prices all over Melbourne are currently averaging half a million.
The median unit price for Melbourne’s West suburbs, including Footscray and Essendon, is $473,250, a 5.60% increase compared to last June 2020.
Inner Melbourne suburbs, including Fitzroy and Carlton, are now experiencing an impressive median unit price of $581,500. This is a 1.10% increase to last quarter and a 2.00% increase to June 2020.
Compare more median unit prices here.
If you are a local or interstate investor who already owns an existing block of land that can accommodate a Melbourne dual occupancy, Melbourne townhouse, or Melbourne multi-unit development, now is the time to capitalise on the rapid growth of Melbourne’s property market and contact a Melbourne townhouse builder.
2. How can I get a high ROI on my property development in 2022?
We recommend starting any property investment with a feasibility assessment to determine whether your potential Melbourne property development is worth your time and money. delcon Design and Construct’s free feasibility assessments will breakdown your initial costs, planning and preliminary costs, construction costs, and other costs such as subdivision fees and real estate agent fees.
Click here to learn more about Feasibility Assessments.
3. How To Get Started in Property Development
When you’re starting out, with no prior residential building, real estate or development experience it’s not advisable to jump into a large-scale property development and attempt to manage the entire project yourself. You could of course, but the chances that you will get the best return on investment possible are slim. It’s even possible that you won’t turn a profit at all.
Due to the nature of the marketplace, when getting started in property development, it’s advisable to start small or seek assistance from a professional. Many new investors have used one of the following strategies and seen success.
- Start small
Starting with a smaller scale development will be easier in terms of time, effort and resources required. The regulation and paperwork complexity will be significantly reduced with a small-scale project. It will also be less expensive and therefore less stressful and easier to manage unexpected expenses or budget blowouts.
- Engage an experienced property development builder who can take care of the entire process with a turn-key service.
A turn-key solution is a service offered by a specialist builder. The client will engage a builder to manage the entire property development, from design to completion. This includes all planning applications, paperwork, construction management, building, and landscaping. The holistic project management involved in a turn-key service allows a new, inexperienced, or time-poor investor to complete a development, without having navigate the process.
4. Realistic Timeframes and Costs
We frequently get asked – What’s a realistic timeframe and budget for my multi-unit property development in Melbourne?
For new investors, the actual time and budget requirements of property development can come as a surprise.
A multi-unit property development often means there is an older property being knocked down, and a number of new homes being built in its place. It’s likely the property is then going to be changed from being on a single title to being subdivided with each home on a separate title.
As you can probably guess, this takes a significant amount of time. Not only do these steps take time, there’s also a lot that goes on prior to these points. For a complete breakdown of expected costs, click here.
To execute your multi-unit development, you’ll need collective knowledge and expertise in the areas of finance, the property market, economics, town planning, legal processes, design, construction, and marketing.
Begin your property development journey with confidence, with delcon design and construct. Melbourne builders with decades of experience helping investors from all over Australia achieve high ROI on their developments.
For any advice or more information on property development in Melbourne, give the team at delcon a call today on 1800 335266.
Property Development Q & A