If you are one of the many Australians who have the opportunity to invest in property development, you are in a fortunate position. Successful property developments have the potential to yield an excellent return on investment, which can boost your financial security and portfolio significantly.
One of the keys to a successful development venture is careful planning and choosing the ideal type of property development for you. Just like most investors’ preferences, budget and goals will differ, the types of developments also vary significantly and though none is superior, they all have different features and benefits that determine whether it is the right choice for you. To help you out with the decision-making, we have compiled a list of 4 popular types of property developments, their unique features and their benefits.
House behind house
A house behind house, or rear strata, development is a simple subdivision where one block is divided into two and an additional house is built on the second block. The extra house can be located behind the original home or next to it. This development type is especially suited for small scale developers who own a home on a large block of land, and wish to develop their current property further. A house behind house development gives you the opportunity to build a second home and sell it or rent it for an additional monthly income. The simplicity of this project makes it a popular choice for first-time property developers or those on a limited budget.
Another affordable and small scale property development option – with the potential for good returns – is a duplex unit. A duplex consists of one building, on a single block, that is divided into two homes by a common wall or roof. The dwellings can be one behind the other, next to each other or one on top of the other. The two homes of a duplex are full homes with their own entryways. A duplex is a very flexible investment option, and you may choose to live in one unit and sell or rent out the other one or rent or sell both of the units. With only two units to manage at the most, many duplex owners choose to manage the properties themselves, rather than hiring a professional property manager.
A triplex is similar to a duplex in that it consists of three units on a single block that share common walls, but this is a much more complicated property development. Triplexes are regarded as high density unit developments and require much more planning, resources and expertise to execute successfully. This may make it a more expensive investment option, but having more units to sell or rent usually makes it much more profitable than a duplex development in the long run.
Multi-unit developments are large scale, and often complex, type of unit development. It can consist of multiple apartments, townhouses and house which are built on their own block, but usually share common facilities like fencing, security, parking and a swimming pool. Depending on the size of the development, a multi-unit building project includes many factors such as various council regulations, plumbing, sewerage, property divisions and permits, and can be costly and complex. But despite this, multi-units have the potential to fully capitalise the available land and are widely regarded as a very fruitful investment. The complexity and costs of a multi-unit make it an option which is better suited for a team of investors or a seasoned and professional developer.
To ensure the best results for your property development, you should consult with an expert like Ross North Developments. We are leading property developers in Perth who take pride in providing excellent advice and guidance to make your property development dream a profitable reality. Our experienced team of developers and builders are well-equipped to assist you in any aspect from choosing a feasible project, securing finance, designing, building and even the sale of your units. For more information give us a call on 08 9431 8118 today.