Many of
Australia’s wealthiest people made their first million dollars through
property, so it’s not uncommon for the team at Mortgage port to be asked about
investing in this area. Here are the top questions you need to consider
when deciding if property development is the right investment for you.
Why choose
property development as an investment? Is there a real demand for property in
Australia?
Housing Industry Association (HIA) found that
housing affordability across the country is now at a record low and will
continue to decline. It warned that the country’s housing shortage is set
to worsen because not enough homes are being built to match demand.
There is also an increase in development demand predicted for
the retail/commercial property sector. Improvements to the domestic economy are
expected to drive growth in demand for retail space, with the Australian retail
property sector expected to experience a steady level of demand for property
space in the coming years.
This means that with a clear need for more
properties to be built in Australia, property development is an option worth
considering for your investment portfolio.
How do
you finance a development property?
The first
thing you’ll need is a Australian development loan. This
is a means of gaining finance for a commercial, residential or resort
development project. Development finance covers a range of property
projects, including:
- Commercial
offices
- Retail/shopping
centers
- Industrial
complexes
- Residential
development
- And
other developments such as retirement villages or child care centers.
How
do you build for profit?
There are
five key things any aspiring property developer must consider before starting a
project to build profit.
• Research – Get to know the area. It is
important to know the current trends for the area, planned and future
infrastructure, and also who is likely to buy.
• Negotiating – Almost every cost involved in
property development is negotiable and people often don’t understand the fact
that negotiation can be what makes or breaks a deal.
• Create a
winning situation –
Create good relationships with the vendor of the land or property, as well as
other team members involved in the sale. Knowing what the vendor requires puts
you in a position to negotiate a much better deal.
• Feasibility – Learn how to assess feasibility,
including all costs, so you can get an idea what the potential profits can be.
• Team work – Know what kind of professionals you
might need and allow them to do their work.
At Mortgage port we pride ourselves on getting to
know you to make the whole process easier. We understand that your needs
in an investment loan will be different to everyone else’s, so we aim to
provide informed and well-researched loan options that match your individual
needs. Working with you in a mutually beneficial two-way relationship ensures
that you get exactly what you need.
 |
| Australian Business Advisors |
Nowadays all peoples doing the business to get the profit and they all will want it very quickly. There are lots of demand of property developer in Australia and peoples like it because investment in property is really useful for the peoples to get the benefits.
ReplyDeleteMandrien Consulting
As all know that property development consultants are playing a great role in the life of people and in that the points you have provided to build the profit is really awesome. Thanks for sharing this post.
ReplyDeleteYes, it is true that consultancy is important in both the cases i.e urban planning or business development and hence must consultant to an experienced consultant before starting these tasks.
ReplyDeleteIts lovely... I like your blog and also the way you have discuss all these point under How do you build for profit? they all sense meaningful.Great job looking forwards such more article on city planning sydney....
ReplyDelete