Property Development in Australia
Property development is the business of constructing or renovating commercial and residential property with the aim of increasing its value. The first step in property development is often to research and identify land and property that presents opportunities and then to evaluate the feasibility and profitability of your proposed project.
Property development involves a wide range of steps, checks and processes. The step that draws most of the attention is purchasing land to build on. The build itself can be anything from a granny flat to a high-rise office building. The most popular types of developments in Australia are small to medium-sized residential projects.
Successful property developers are able to balance the drive of ambition and the will to succeed with the need for patience. It is important to analyse each property opportunity in conjunction with a range of other factors like the market, economics, finance, town planning, the construction process, and demands of marketing real estate projects.
Starting In Property Development
Residential property development is often a way to build wealth but there is more than one way to do this.
Renovations to update an existing building are popular. Renovations can be a good introduction to the world of property development but it is still crucial to research any area you are considering.
The next step up on the property development ladder is to take on a brand new build. There are many different property development options that can produce good returns, including:
Secondary Dwellings
You can use the equity in your own backyard with a house behind house. New zoning changes have meant that many property developers are looking at this option more closely. Homeowners can continue to live in their home while taking on the development of their backyard.
Duplex
A duplex is a subdivision that allows for two homes to be built on the one master titled piece of land. The two self-contained dwellings must share a wall. Building a duplex is a good investment strategy, with options that can be mixed and matched to your investment goals. You can sell or rent both properties, rent one and sell one, sell one, rent one and keep the other.
Triplex
A triplex is much the same as a duplex except that it allows you to build three homes on the one master titled piece of land. Triplex subdivision designs include townhouses, villas and single storey homes.
Triplex developments usually happen two ways: a single triplex site involves subdividing a master block into three titles and a multi site involves amalgamating two or more blocks to create three separate titles.
Multi-Unit Site
A multi-unit development is four or more units or townhouses on a single block. If done correctly, they can be solid investment projects. The process can come with higher risk than other projects, but this in turn can create higher reward.
For multi-unit development, you need to find a sizable site free of significant encumbrances and with dimensions suitable for subdivision in a suburb with a reasonable asking price.
NDIS / SDA
The National Disability Insurance Scheme (NDIS) supports more than 500,000 Australians and the National Disability Insurance Agency (NDIA) is working toward breaking down barriers and enabling people with disabilities to choose where and with whom they live.
A big portion of the NDIS budget has been allocated to provide new housing stock, which although privately owned, has rental payments funded through the NDIS.
With a bit of research about the scheme, you may find an opportunity to help others while enjoying a positive geared asset.
From humble beginnings in 2004, Homecorp has grown to deliver house and land estates, terraces, town houses and high rise developments across South Australia and Brisbane as well as Perth, the Gold and Sunshine Coasts.
Our vision is to develop inspiring communities of the future where people belong. Homecorp is committed to elevating the standard of living across Australia and our strategic ownership gives us a solid foundation to build from…. just take a look at our projects below!