It’s important to take as much of the guesswork out of developing as possible.
The best way to do this is with a project assessment – before you commit to tearing up your backyard or spending money on a block with development potential.
Just how much potential is there? What will it cost me to realise that potential? At the end of the day, will I make a profit?
Our no-fee project assessment can help you answer these crucial questions, whether you plan to build an investment property in your own backyard, or have found a block ripe for subdivision.
Here’s are 5 reasons why shrewd developers obtain a project assessment before they commit:
It’s all about the numbers.
After all, if the numbers don’t stack up, chances are your project isn’t feasible. Our project assessment includes cost predictions to give you an accurate idea of how much your development properties will cost to build. This will help clarify the short, medium and long-term potential of your project. While the market will always set the ultimate sale price (or rental price), we can show you what the project costs will be so you can weigh it all up. Remember, you’re looking for facts, not chasing fiction.
Hold or sell?
We’ll evaluate each option against market conditions so you can decide the best way forward for you and your circumstances.
Access is often the first thing to look at, especially if you plan to develop a <house-behind-house> project using your own backyard. Soil conditions (sandy or clay?) and sewer location also come into play, along with issues such as fencing and possible retaining. All have the potential to add to the cost of your project.
De-coding the R-Codes.
We’ll work out whether there’s enough space to build in your backyard according to the relevant R-Code. If you’re purchasing a development block, we’ll also calculate out how many properties you can get on the site and suggest ways to maximise profit.
It’s all too easy to under-estimate development costs without expert advice, especially if you’re building at the rear of your own home. While it’s amazing what can be achieved with the right design, such projects are not without their challenges. You may even need to make modifications to the front property in order to build to the rear or to the side. However, if you have a solid amount of equity in your home, it’s generally hard for a rear-strata development project to be a bad option.
“We cannot guarantee profits with any development, but what we can do is prove – with a great deal of accuracy – what the project cost will be,” says development specialist Clem Longman. “Once that accurate information is known, it will make for clear-headed decisions regarding the way forward. That may be build and sell, or build and hold for rental returns, or even sell some and hold some. It may be to not proceed at all.
“A project assessment will also allow you to determine how much you might need to borrow from your bank and what the likely return will be on your investment.”
Remember, there’s no charge for a project assessment report by one of our development experts.
Got a project in mind? Request your personalised project assessment today.