development

Buying and selling property as a way of making money is the dream for many Aussie’s. Before diving in, it’s important to realise that property development is a diverse, complex and tricky business. But done right, there can be a big reward too. 

At Clover Financial Solutions, we believe the secret to success is to seek support and guidance from experts — the people that deal with council regulations, finance arrangements and the construction process every day of the week.

Developing for first timers

It’s no secret that the biggest obstacle to breaking into the world of property development is the amount of capital needed to get started. However, there are plenty of ways that first-timers can keep costs down and profits up.

Location

Budget plays a huge role in picking the location of a property development. Some first timers are lucky enough to already own the property they want to develop, and others are on the hunt for the perfect spot. Our top suggestion for those searching for a property is to consider targeting a growth area. These locations usually provide the best return, as property values and rental return will increase as the area grows in popularity.

Subdividing a block to build two properties is a great place to start. That’s because you can generate profit on both the front and back properties. You may also be able to rent out the existing property while you build or live in one of the residences yourself. 

Vacant land

There are new land developments popping up every week, and there are options to suit every budget. Building two houses or townhouses on an affordable lot is a great way for first timers to get their foot in the door. However, it’s super important to plan and monitor your cash flow to ensure you can manage the building process without income from the property.

The value of property development

Success in the world of property development comes down to careful planning and plenty of research. It’s super important that you take into consideration the costs of the builder, town planner, draftsperson and architect, as well as any other expenses that could pop up along the way. Some lenders are reluctant to lend on potential development sites, which can have a huge impact on your upfront costs too.