With the current state of the rental market, there is an opportunity in the Byron Bay real estate market to capitalise on starting your journey as a property developer. With all investments though, there is a risk. We aim to walk you through some of those risks in this article.
There are many beautiful places to visit in Australia, but some of the best are Byron Bay, Ballina, and the Northern Rivers. Putting money into real estate in the area of Australia that is experiencing the most rapid economic expansion is a massive opportunity.
Those considering entering the property development market should thoroughly examine the risks and advantages before making a decision. If you want to find a site that has the potential to make you money, the first step is to learn how to buy the property with the most potential; you will want to secure a high return on investment.
There are various things to think about.
Before investing, it is critical to conduct research and know the market. You may ensure that the properties you create will appeal to the local market by researching the sort of housing that sells or is needed in the area.
There are several construction styles available, including single and double-storey alternatives, duplex or dual occupancy, granny flats, and accessible dwelling plans, among others. Are the options provided appropriate for the website you're looking at?
Consider areas that are strategically located and conveniently accessible. These sites are more likely to attract tenants or buyers, and you will be able to demand higher rentals or prices. It's also a good idea to look for properties close to amenities like schools, hospitals, and retail centres.
On a large lot or land, you may be able to secure approval for a second dwelling or even the destruction and rebuilding of your current home. Perhaps the current property could be subdivided for construction.
You will need to create a comprehensive plan for the property's intended usage. Will you build as well as sell? Or should you build and rent?
The cost of building is also significant; if the site is too expensive to develop, e.g., expensive site works, the project may not be worth the time, money, and effort required. Which contractor will you pick for the project? How long will you have to wait for the contractor to start working?
Do you have a bank or financial institution pre-approval for your project? What financing choices are available for homes? What is the potential return on investment, taking into account all costs?
Is this a place where your family could live if it doesn't sell or rent?
Consult with the local council to determine the wait times for such a development and the approvals required for the area.
Among the hazards of property development are:
If the project does not go as anticipated, or if the market shifts unexpectedly, you may suffer a financial loss. There are several regulations involved in real estate development, and if they are not strictly followed, you may face legal troubles.
Do you believe that property development is a viable option for you after examining all of the above factors? It can be a very profitable venture, and we believe it is beneficial if conducted at the appropriate time and in the right place.
Our website features a wide range of home styles, including granny flats, duplex plans, dual occupancy homes, single level and two-story homes.
Integrity New Homes also provides a fantastic range of standard Designer Inclusions from trusted firms such as Bunnings, Reece Plumbing, Laminex, James Hardie, B and D Doors, and PGH Bricks, to name a few. Always keep in mind that property increases value more than any other means of investment!
If you are looking to become a property investor, we specialize in enabling you to plan, design, and build the best investment for your budget and needs.