How to choose the right property development location in Perth…
Building in different areas may have cost implications you are not aware of.
There are numerous factors that can affect the costs of your general works when building. For example, locations that have clay or limestone, or established areas with grass or tree root matter in the building area, will add additional costs to your project. You can prepare yourself upfront by purchasing an engineer’s report on the soil classification. This article will outline the building requirements required to construct on the site and therefore, any cost implications it may have on your project.
In most cases a survey and engineer’s detail will give the Builder enough information to give you accurate costs to do your development or investment. The small upfront investment will assist you in deciding on what direction to take and if you haven’t already purchase the land, may impact on your decision to actually move forward with this site.
Knowing your end game will assist you in choosing a location. If your goal is to build an investment property then capital growth and occupancy rates for tenancy in that area would be important information. Some areas are better suited for long term investments while others are ideal for a speculative investment where the product is sold at the end of construction.
A speculative investment involves more risk as you are working on the basis you can buy the land, build and sell the end product for a profit. It may surprise you that professional investors are able to make profits in all market conditions.
Location also has an impact on multi unit development. Matching the correct building product and a level of finish are key elements to a successful project.
Successful outcomes for projects are usually the result of market research and creating the correct product for that market place. Working with the correct type of Builder and Sales Consultant plays a major factor in your project as they are your partners from start to finish.
The best advice is to ensure you have made all the necessary inquiries prior to making a firm offer on the property, and you are fully aware of the cost impacts for your project. Talk with professionals who have experience in these matters, so you can make informed decisions on how best to move forward.
Ventura iD and Multi Living Developments offer a free consultation service so you can see if developing is an option for you. Call (08) 9241 1600.