It’s no secret property development is exciting, however it’s important to understand the complexity behind the business and the property development lifecycle.
We’ve outlined some steps to assist in making your property development journey a smooth and enjoyable experience.
- What are your aims and goals?
Perhaps your goal is to build your property investment portfolio, develop and sell, or rent your property out.
No matter the reason and motivation for your journey, it is a crucial step to identify, to ensure your building partner can meet your needs and maximise your return on investment.
- Choosing your block
When searching for a suitable block relevant to your goals, first and foremost, you will have to contact the local Shire to check the zoning and ensure you are able to develop the block.
TIP: Just because the advert promoting the block says property can be developed, doesn’t always mean you can, so it’s critical to check with your local Shire before anything else.
Once you have confirmed what you can build on the property, there are a few other important points to consider during this process.
- Desirability and Demographics: How desirable does the general population perceive this area to live in? What is the target demographic for this area?
- Population Growth: Is the general population in the area increasing or decreasing?
- Infrastructure: What is the infrastructure currently in place? Are there any improvements on the way?
- Land and Housing Development: How much building and development are happening in the area? This can be a good guide to highlighting areas that may be in transition.
- Amenities: What is available in the area and what would be appealing for your buyer or tenant? Think about transport, parks, schools, cafes, parks, medical care.
- Planning: Is the location suitable for your project? Is the land size appropriate? Is the block wide enough?
- Supply and Demand: How many new dwellings are being constructed in the area? Will your development be in demand once constructed?
- Is it feasible?
To make sure your development project is feasible, engage with a professional to conduct a feasibility assessment so you can ensure your chosen block will provide you with the maximum return on investment.
- I have my block, now what can I build?
You may have a block in mind to purchase, or better yet; already own your block. This is the stage where you should engage with a builder who specialises in property development.
They will be able to advise you on which design(s) would work best for your block, as there are many development configurations to consider subject to shire and zoning requirements, as well as keeping front of mind your budget and return on investment.
Options for developing on a block can include:
- A house behind the existing house: Renovating the existing home and building a new property at the rear of the block.
- A duplex: Two new developments side by side or back and front.
- A triplex: Three new villa or townhouse developments.
- Multi-units: 4+ villa, townhouse, or apartment developments.
For more information on property development, you can download our Property Development Kit and Checklist here.
Ultimo Constructions are Perth’s Property Development Specialists, and we would be privileged to become your building partners throughout all stages of your development journey.
Contact us today to arrange your obligation-free initial consultation.