Identifying that lucrative development site could bring you a lifetime of rewards. If you’ve got your eye on a potential property subdivision, how do you know if it’s truly a hit, and not a miss?
While many factors will determine the success of any development site, here are the top signs you could be onto a winner!
- Amenity everywhere
Take a look around – is there essential amenity nearby? Think shops, doctors, schools, employment nodes and transport links. And if it’s not there yet, is it forecasted for the near future? While no two tenants are alike, just about everyone has to access these amenities and will be attracted to areas that have them nearby.
- Is there a demand for rental properties in the region?
The best strata developments(Perth) are those that are responding to a demand in the market. Avoid a ‘build it and they will come’ mentality and talk to the people on the ground (AKA local real estate agents) about the vacancy rates and average rents for properties in the area. You are looking for a big tenant pool and high demand for the style of property you are seeking to build.
- Where are property prices going?
Do your research – have land prices in the area been trending upwards overall? Or does your research give you great confidence that they are about to? While pinpointing that region that’s about to explode can fast track your wealth creation, slow and steady growth opportunities can be lucrative in the long term.
- How much work does the block need?
No two blocks are created equal! Is your potential block nice and flat? Or is there a slope that will likely increase your site work costs. In addition, is there a house still on the block that you’ll need to demolish? Look to see if there are any restrictions on the existing home which will impact your ability to develop the block. These factors will guide your design, and will need to be factored in when analysing a block to purchase or development potential of the site.
- Get the R-Codes right
Look at the R-Codes affecting the block – is your property subdivision (Perth) permitted under the current R-Codes? Or are the required R-Code changes happening imminently? Get full bottle on future rezoning/structure plans for the area to make sure your block is set to be a hit.
- Speak with Summit!
With close to 40 years’ experience and more $650 million of successful unit developments they are the team at Summit are the property development experts. Ready to develop your block?