With the population in cities like Perth growing rapidly and quality housing becoming increasingly scarce, subdivision has become a fruitful property investment strategy for many. But is this the right strategy for you? If you own a large block and are looking for a flexible investment opportunity that can be tailored to suit your specific investment goals and budget, then the answer is yes. We believe subdivision offers good opportunities for those who want to try their hand at investment properties for the first time, as well as seasoned investors who are keen to expand their investment portfolios. Here’s why.
Maximise the full potential of your current property
Owning your first home is a solid foundation for building financial security, but if you want to grow your investment portfolio, wealth, and cash flow you should consider additional investment options. The subdivision is a sensible investment choice as it allows you to take the block you already own and fully capitalising on its size by creating new properties. This can be very cost-effective as it eliminates the costs of buying new land and you can choose a type of development that suits your budget, goals and level of commitment best.
Flexible investment options
Flexibility is one of the main advantages of subdivisions. When you decide to subdivide you’ll have the option to choose how many new blocks to create and the type of housing development to build on the new blocks. (Keep in mind that council regulations will also influence your options.) You will also be able to choose between subdividing and selling the new blocks, or developing them and selling the new units, or renting them out. This is a good opportunity to gear your investment to suit the market at the time.
Opportunity to fulfil the demand for housing
If you own a large block in a popular suburb, especially close to the city, then subdividing can be a very profitable investment tactic. When you subdivide and develop your block, you may soon be offering homes to rent or for sale to a population that is progressively looking for quality homes, and are often willing to pay top prices for it – especially near the city centre.
A rewarding investment
A successful subdivision has the potential to quickly multiply your assets which you can then sell at a profit to grow your personal capital, or rent to increase your monthly income. Subdividing your own block may seem like a small investment at the time, but if fruitful, it may be your entryway into the property investment market. The knowledge, experience and profits gained from your first subdivision can all be used to reinvest in future subdivision ventures.
A subdivision may be a large investment project to undertake, but fortunately, you don’t have to go it alone. Ross North Developments are specialist in property development in Perth. Our team of property developers are dedicated to helping you achieve the best results for your next subdivision or property development. With our extensive knowledge and expertise, we can guide you with every step of subdividing your block, and developing a house behind house, duplex, triplex or multi-unit development. Speak to one of our property development experts today by calling 08 9431 8118 for more information. Check out our range of Narrow Lot Homes in Perth which combines aesthetic design with day to day functionality.